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SR&ED Consulting For the Agriculture Sector

Agriculture, an industry at the intersection of tradition and innovation, is continuously seeking sustainable farming methods, nurturing food security, and driving Canada’s economic development. Such efforts require continuous scientific research and experimental development (SR&ED) to explore new principles, processes and systems. The Canadian government recognizes this by offering attractive SR&ED tax incentives to promote agricultural advancements. However, understanding and effectively applying for these incentives can be challenging. Here at G6 Consulting, we specialize in making SR&ED consulting streamlined and effective for the agriculture sector, facilitating substantial tax credits for our clients.

Understanding SR&ED

The Scientific Research & Experimental Development (SR&ED) program is a Canadian government initiative aimed at promoting innovation and advancement across various sectors – including agriculture. It offers refundable and non-refundable tax credits to organizations that engage in qualified SR&ED activities within Canada.

SR&ED in the Agriculture Industry

Within the agriculture sector, numerous innovative practices can qualify for SR&ED incentives. From the development of sustainable farming practices to the advancement of crop yield participation, genetic research, innovative irrigation systems, and the integration of technology in farming activities, many everyday activities potentially qualify for SR&ED tax credits.

Examples of SR&ED activities in agriculture could include:

  • Experimental cultivation techniques to improve crop yield or resistance
  • Developing innovative machinery or software applications for precision agriculture
  • Experimentation with organic farming methods to improve soil health
  • Improving animal health and productivity through new veterinary technologies

SR&ED Tax Credits for the Agriculture Sector

Under the SR&ED program, companies can claim two types of Investment Tax Credits (ITCs):

  • Refundable tax credits: Can generate cash refunds, a crucial help for organizations with low or without taxable income.
  • Non-refundable tax credits: Can be used for offsetting taxable income.

For Canadian-controlled private corporations (CCPCs) engaged in SR&ED activities, they can claim a 35% refundable ITC on the first $3 million of qualified expenditures and a 15% non-refundable ITC on any expense above this limit.

Non-CCPCs comprise foreign-controlled corporations and public corporations which can claim a 15% non-refundable ITC on all eligible expenditures.

An SR&ED Roadmap for the Agriculture Industry

Identifying eligible SR&ED activities within the agriculture sector requires an in-depth understanding of the program, the sector, and associated scientific principles. Here are a few considerations:

  • Work must involve technological uncertainties with an intention to overcome them.
  • Advancements considered are not only revolutionary but also incremental changes that improve existing systems, processes, and products.
  • Systematic investigation or search by experiment or analysis must be performed.

G6 Consulting For Agriculture

At G6 Consulting, we excel in steering agricultural businesses through the SR&ED process. With our roots deeply embedded in the industry and robust understanding of SR&ED requirements, we help businesses identify eligible activities, document pertinent information and complete tax forms to ensure full compliance.

In a challenging global climate, agricultural innovation is not only desirable – it’s crucial. We’re here to aid you in traversing the intricacies of the SR&ED program, help recoup some R&D costs, and reinvest in your future innovations. Reach out to us today to learn more about SR&ED consulting for the agriculture sector.

Get your SR&ED done right with G6 Consulting Inc – Canada’s R&D Tax Credit Experts!

G6 Consulting can work with you to build your claim, co-ordinate with your accountant, submit your claim and get you your cheque. No cost until you get paid

Check out our SR&ED overview page to learn more about SR&ED and how to qualify

Contact an Expert for a free no obligation consultation to see if your business can qualify

Check out our SR&ED calculator to get an idea of how big your SR&ED cheque could be