Return of Fuel Charge Proceeds to Farmers Tax Credit
no fixed amount
Tax Credit
Description:
This refundable tax credit is a way to return fuel charge proceeds under the federal carbon pollution pricing system directly to eligible farming businesses.
Comments on Funding:
The credit is equal to eligible farming expenses attributable to a designated province for the tax year, multiplied by the payment rate for the calendar year for the designated province, as specified by the minister of Finance.
Rolling deadline
Eligibility:
Applicants must:
1. be farming businesses;
2. have to incur gross eligible farming expenses of $25,000 or more;
3. have all or a portion of those expenses must be attributable to provinces that do not currently meet the federal stringency requirements, that is, the following designated provinces: Ontario, Manitoba, Saskatchewan, and Alberta.
Application Steps:
Applicants:
1. can claim this credit on their tax returns that include the 2021, 2022 and 2023 calendar years.
2. must file a completed Schedule 63, Return of Fuel Charge Proceeds to Farmers Tax Credit, with their return for the year.
3. On line 795 of the return, applicants must enter the amount of the credit they are claiming.
Documentation Needed:
Applicants must provide a completed Schedule 63.
Other Things to Note:
The return of fuel charge proceeds to farmers tax credit applies starting in 2021.
About the author
Maurice
