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Source verified July 8, 2026
British Columbia logging tax credit
Provincial logging tax credit for B.C. income
Latest source updateLast Update: July 8, 2026Latest change: The Income Tax Act source for the logging tax credit now reflects revised credit calculation rules, including a new 2026 adjustment rule and a 2027–2030 no-adjustment rule.View change
Latest source update
Last Update: July 8, 2026
Latest change: The Income Tax Act source for the logging tax credit now reflects revised credit calculation rules, including a new 2026 adjustment rule and a 2027–2030 no-adjustment rule.
British Columbia logging tax credit updated
The Income Tax Act source for the British Columbia logging tax credit now shows updated calculation rules, including changes to the lowest bracket rate and the BC tax reduction credit amount. It also now includes a new 2026 adjustment rule and a 2027–2030 no-adjustment rule that affect how credit amounts are computed over time. This is a substantive update to the tax-credit terms rather than a process change, because several related tax-credit provisions were revised or repealed and the benefit calculation itself may differ for affected taxpayers.
Funding available
Up to 33% of project cost
Deadline
Open continuously
Location
British Columbia, Canada
Who can apply
Individuals with income from logging operations on private or Crown land in B.C.
See full eligibility
Overview
The Logging tax credit for corporate income tax and personal income tax is a provincial credit for individuals and corporations in B.C. that paid logging tax on logging income, equal to one-third of the tax payable. Covered operations include the sale, delivery, acquisition, cutting, import or export of logs, plus forest product production and transportation.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Ensure financial sustainability
Eligible Funding
- Up to 33% of project cost
Eligible candidates
Eligible Industries
- All industries
Location
- British Columbia
Legal structures
- Sole proprietorship
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Sale of logs, standing timber, the right to cut standing timber, and primary or secondary forest products.
- Delivery of logs to a sawmill, pulp or paper plant, another processing or manufacturing site, or a carrier for export.
- Acquisition of logs, standing timber, or the right to cut standing timber.
- Cutting, importing or exporting logs, producing forest products, and transporting logs.
Documents Needed
- A copy of your federal income tax return and financial statements
- The payment if the return indicates a balance of tax owing
- A copy of the federal income tax Corporation Notice of Assessment for refund applications
Official resources
Eligibility
Who is eligible?
- Individuals with income from logging operations on private or Crown land in B.C.
- Corporations with income from logging operations on private or Crown land in B.C.
- Businesses that process B.C. logs into primary or secondary forest products.
Who is not eligible
- Businesses that do not process B.C. logs cannot use FIN 542P.
- Applicants who process B.C. logs into primary or secondary forest products cannot use FIN 542S.
How to apply
- Use FIN 542S if you have income from the sale of B.C. logs, standing timber, timber rights, or the export of logs.
- Use FIN 542P if you process B.C. logs into primary or secondary forest products.
- Complete the return, sign it, and include a copy of your federal income tax return and financial statements.
- Include the payment if the return indicates a balance of tax owing, and file the return within six months after the end of the tax year; if the due date falls on a weekend or B.C. statutory holiday, file on the next business day. Submit online using eTaxBC or send the printed return by mail.
- Claim the provincial logging tax credit when you file your T1 Income Tax Return or T2 Corporation Income Tax Return; individuals enter it on the British Columbia Tax form (BC 428), and corporations enter it on line 651 of Schedule 5, Tax Calculation Supplementary – Corporations.
Processing and Agreement
- If your tax return and payment are not received on time, penalties and interest will be charged.
- If a refund application is reassessed, the corporation agrees to return the amount of any excess refund.
Additional information
- The credit is non-refundable.
- There are no carry-forward or carry-back provisions.
- The logging tax paid is usually fully deductible as a credit against income taxes if claimed within three years of filing the federal return.
- For Canadian-controlled private corporations that cannot claim the full credit, a refund application may be available.
Contacts
Frequently Asked Questions about the British Columbia logging tax credit Program
What is the British Columbia logging tax credit?
The Logging tax credit for corporate income tax and personal income tax is a provincial credit for individuals and corporations in B.C. that paid logging tax on logging income, equal to one-third of the tax payable. Covered operations include the sale, delivery, acquisition, cutting, import or export of logs, plus forest product production and transportation.
How much funding can be received?
British Columbia logging tax credit Funds up to 33% of admissible expenses.
Who is eligible for the British Columbia logging tax credit program?
To be eligible for the British Columbia logging tax credit program, you must:
The applicant must have income from logging operations in B.C.
The logging tax must have been paid to B.C. for the year.
Canadian-controlled private corporations may apply for a refund if they could not claim the full British Columbia logging tax credit.
What expenses are eligible under British Columbia logging tax credit?
Sale of logs, standing timber, the right to cut standing timber, and primary or secondary forest products.
Delivery of logs to a sawmill, pulp or paper plant, another processing or manufacturing site, or a carrier for export.
Acquisition of logs, standing timber, or the right to cut standing timber.
Cutting, importing or exporting logs, producing forest products, and transporting logs.
Who can I contact for more information about the British Columbia logging tax credit?
You can contact BC Ministry of Finance by email at ITBTaxQuestions@gov.bc.ca or by phone at 1-877-387-3332.
Where is the British Columbia logging tax credit available?
The British Columbia logging tax credit program is available the province of British Columbia.
Is the British Columbia logging tax credit a grant, loan, or tax credit?
British Columbia logging tax credit is a Tax Credits