| Alberta Greenhouse Growers Association helped to organize two workshops in January to provide information to growers on this largest single source of federal government support for industrial R & D in Canada. This information is gleaned from the presentations made by Dr. Basu Gantotti and Kevin Gibson.
The objective of the SR&ED tax incentive program is to encourage Canadian businesses of all sizes to conduct research and development (R&D) in Canada. Controlled Environment Crop Production Sector is included in this program.
It is important to understand what activities and projects are eligible for this tax incentive.
Controlled environment crop production sector includes crops grown in greenhouses including vegetables, flowers and ornamentals, shade/cloche systems, mushroom production and nursery industries.
Work in the areas of greenhouse meets the definition of SR&ED when it is performed ‘for the purpose of achieving scientific or technological advancements using a systematic investigation or search by means of experiment or analysis.
Technological advancement is a key element of the program. It does not include the application of technology that is merely new to a particular taxpayer or industry. In particular, development work that uses available knowledge does not qualify as SR&ED.
Several examples were provided in the workshop to highlight what is eligible and what is not. Standard cultural management strategy, optimization of parameters like light, CO2 etc., management protocols bases on standard practices would not qualify as compared to planned systematic experimental work to address specific technological limitations or to advance technology.
Other aspects discussed included sample/plot size, direct labour, financial considerations, materials, documentations, multiparty SR&ED, check-off contributions and other eligible work.
This is the web address. http://www.cra-arc.gc.ca/sred/ There are many consultants in the marketplace as well. You can find them through web search. |