Food Bank Tax Credit for Farmers
Nova Scotia Department of Finance and Treasury Board Taxation and Federal Fiscal Relations Division Released December 2016 Guidelines for the Food Bank Tax Credit for Farmers Overview The Food Bank Tax Credit for Farmers is a non-refundable income tax credit for individuals or corporations that carry on the business of farming and donate agricultural products to eligible food banks in Nova Scotia. The credit is 25 per cent of the fair market value of the agricultural products donated and is available for donations made on or after January 1, 2016.
Offered by Department of Finance and Treasury Board
Amount
Non-refundable income tax credit of 25 per cent of the fair market value of the agricultural products donated (25 per cent of the value of the qualifying donations), for donations made on or after January 1, 2016
Quick eligibility check
Who can apply
An eligible person means:
an individual who carries on the business of farming in Nova Scotia or the individual's
spouse or common-law partner, or
a corporation that carries on the business of farming in Nova Scotia.
“Carries on the business of farming” is an interpretation that is made by the Canada Revenue Agency (CRA).
What is a Qualifying Donation?
A donation is a qualifying donation for a taxation year if:
it is a donation of one or more agricultural products produced in Nova Scotia by an
eligible person; and
it is donated by an eligible person to an eligible food bank.
What agricultural products are eligible?
An agricultural product means:
any item that may legally be sold, distributed or offered for sale in Nova Scotia at a place
other than the premises of the producer of the item as food intended for human consumption and that is grown or harvested on a farm, including all of the following items:
- fruits
- vegetables
- grains
- pulses*
- herbs
- honey
- maple syrup
- mushrooms
- nuts
- Pulses are part of the legume family, but the term “pulse” refers only to the dried seed.
Dried peas, edible beans, lentils and chickpeas are the most common varieties of pulses.
an item listed above that has been processed is an agricultural product only if the item
was processed no more than necessary to permit it to be legally sold, distributed or offered for sale in Nova Scotia at a place other than the premises of the producer of the item as food intended for human consumption.
What is an Eligible Food Bank?
An eligible food bank is a person or entity:
that distributes food in Nova Scotia without charge for the relief of poverty as part of its
mandate,
that is registered as a charity under the Income Tax Act (Canada).
Nova Scotia 211 maintains a list of food banks in the Province. However, not every food bank is registered under the federal Income Tax Act. Please check on Canada Revenue Agency’s (CRA) website to confirm a food bank’s registry before making donations.
About the funding
Nova Scotia Department of Finance and Treasury Board Taxation and Federal Fiscal Relations Division Released December 2016 Guidelines for the Food Bank Tax Credit for Farmers Overview The Food Bank Tax Credit for Farmers is a non-refundable income tax credit for individuals or corporations that carry on the business of farming and donate agricultural products to eligible food banks in Nova Scotia. The credit is 25 per cent of the fair market value of the agricultural products donated and is available for donations made on or after January 1, 2016.
For individuals or sole proprietors, the amount of the tax credit depends on how much you give and is calculated as 25 per cent of the value of the qualifying donations. You must also claim the qualifying donations under the charitable donations tax credit in the same year.
For corporations, the tax credit is equal to 25 per cent of the corporation's qualifying donations for the tax year. The corporation must also claim the qualifying donations under the charitable donations tax credit in the same year.
Claimed through the Canada Revenue Agency on your corporate tax return.
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