Tax Credits for Farmers & Food Industry

The food, beverage, and agriculture industries offer many opportunities to sr&ed for food production and farmerscapitalize on SR&ED funding. In making your business competitive in Canada, you’ve probably experimented with your normal routines or tried developing new products.

Once satisfying the basic requirements, the scientific development does not need to be groundbreaking to benefit from funding—it can be as simple as adding a gluten-free version of a popular treat to you bakery’s menu or finding a use for everyday waste materials.

Here are some examples of everyday farming and food processing projects that could be eligible for SR&ED funding:

Farming and Agriculture

As populations rise and conventional farming methods become dated, the federal government is rewarding farmers who advance agriculture techniques. Modifications that increase crop yield or altering equipment to increase production and safety are common projects.

Attempts to make your farm more environmentally-friendly also benefit from funding, such as developing alternatives to harmful chemicals, using equipment that requires less energy, or improving irrigation techniques and routines for reduced water use.

Finding a practical use for traditional waste (manure, groundwater, or leftover livestock feed) can receive funding, such as altering equipment to be powered by unused grains or corn.

Processing and Manufacturing

Food processing companies also reap the benefits of SR&ED funding. For example, developing an existing product to meet consumer needs of gluten-free, sugarless, and nut-free foods is a simple and common procedure that many food processors and restaurants already do.

Experimenting with ingredients to extend a product’s shelf-life or to improve flavour and nutrition also qualify. Conducting research on the impact of a process, such as your storage or shipping techniques are included in the program as well.

Vineyards and Breweries

In trying to create the next must-have wine, there’s a good chance you altered your usual process.  Experimenting with soil types, grape selection, and water control are everyday activities that qualify for tax credits.

Funding is also available for breweries. Examples of eligible projects include changing the bottling process for better efficiency, experimenting with hops to improve flavour, or developing new packaging to reduce materials.

Plants and Greenhouses

Everyday greenhouse operations could also lead to your business receiving SR&ED funding. Modifying seed combinations, experimenting with temperatures, and determining how to better grow plants that are non-native to your area are examples that may qualify.

Various types of research may also be eligible, such as examining how different temperatures, lighting, and irrigation routines impact growth. Be sure to record all experiments and research details, no matter of the success.

Many businesses across Canada are satisfying the requirements without realizing they may be eligible to recover up to 65% of their eligible expenses.

To find out how your routine food and agriculture activities could result funding, contact Enhanced Capital Recovery today for a no-risk consultation.  We’re your SR&ED consulting experts in Vancouver, Edmonton and Toronto.