How much funding can be received?

Funds up to 10% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the British Columbia logging tax credit?

British Columbia logging tax credit is funded by BC Ministry of Finance, Government of British Columbia

What are British Columbia logging tax credit's eligibility criterias?

Must have income from logging operations on private or Crown land in B.C. Applies to individuals or corporations

British Columbia logging tax credit

Last Update: April 27, 2025

BC, Canada

Tax credit for income from logging operations in British Columbia

British Columbia logging tax credit at a glance

Eligible Funding

Up to 10% of project cost

Timeline

Continuous Intakes

Financing Type

Tax Credits

Eligible Industries

Agriculture, forestry, fishing and hunting
Manufacturing
Transportation and warehousing

Grant Providers

BC Ministry of Finance
Government of British Columbia

Status

Open

Overview of the British Columbia logging tax credit program

The British Columbia Logging Tax Credit allows individuals or corporations engaged in logging operations in B.C. to claim a credit equal to the lesser of 10% of income from logging activities or 150% of the federal logging credit. The program supports activities such as the sale, acquisition, production, processing, and transportation of logs and primary or secondary forest products.

Financing terms and conditions

Tax is calculated as the lesser of 10% of the taxpayer's income from logging operations in B.C. or 150% of the federal logging credit that would be allowable before political contributions and investment tax credits.
A processing allowance may be deducted, calculated as 8% of the original cost of assets used, not exceeding 65% and not less than 35% of the net processing income.
The amount of logging tax paid is usually fully deductible as a credit against income taxes if claimed within three years of filing the federal income tax return.

Eligible projects & activities

Conducting logging operations on private or Crown land in British Columbia.
Sale of logs, standing timber, or rights to cut standing timber.
Production and processing of primary and secondary forest products such as lumber, shakes, shingles, poles, pulp, and paper.
Acquisition, delivery, import, export, or transportation of logs and related forest products.

Examples of admissible projects:

$ 12,000

Launching e-commerce website for artisan bakery and local delivery

$ 33,000

Implementing cloud-based CRM to improve customer experience

$ 70,000

Upgrading food processing with energy-efficient packaging equipment

$ 15,000

Retrofitting non-profit daycare with accessible washrooms

$ 25,000

Pilot community co-op greenhouse for sustainable urban agriculture

$ 24,000

Developing an accessible mobile booking app for hair salons

Eligibility criteria of the British Columbia logging tax credit program

The applicant must be an individual or corporation with income from logging operations on private or Crown land in British Columbia.
Logging operations may involve the sale, acquisition, cutting, import, export, delivery, transportation, or production of logs, standing timber, or primary and secondary forest products.
The applicant must pay logging tax based on income from these logging operations as specified by the Logging Tax Act.

Who is eligible?

Individuals or corporations with income from logging operations on private or Crown land in British Columbia
Companies involved in the sale of logs, standing timber, or the right to cut standing timber
Businesses engaged in producing or delivering primary and secondary forest products (such as lumber, shakes, shingles, poles, pulp, or paper)
Entities transporting, importing, or exporting logs
Operators involved in the cutting or acquisition of logs and standing timber

Eligible expenses

Operating expenses directly related to logging operations.
Costs associated with the acquisition of logs, standing timber, or the rights to cut standing timber.
Expenses incurred in the processing or manufacturing of primary and secondary forest products.
Processing allowance calculated as a percentage of the original cost of assets used to produce forest products.

Eligible geographic areas

British Columbia

How to apply to the British Columbia logging tax credit program

Step 1: Calculate Logging Tax OwedDetermine your gross revenue from all eligible logging operations in British Columbia.
Deduct operating expenses related to logging activities in accordance with Division B of the Income Tax Act (Canada).
If applicable, deduct the processing allowance for manufacturing primary or secondary forest products.
Calculate the tax as the lesser of 10% of your income from logging operations in B.C. or 150% of the allowable federal logging credit.
Step 2: Complete Required Logging Tax FormsObtain the necessary forms and publications as indicated by the British Columbia government for logging tax filings.
Step 3: File Logging Tax ReturnPrepare and file your logging tax return, reporting the calculated tax and required supporting documentation.
Ensure all details are accurate and complete in the submitted forms.
Step 4: Pay Logging Tax OwedSubmit payment for the calculated logging tax owed for the tax year.
Step 5: Claim Logging Tax Credit on Federal Income TaxContact the Canada Revenue Agency to claim the paid logging tax as a credit against your federal income taxes within three years of your federal filing.
Step 6: Inquiries and AssistanceFor questions or additional guidance, contact the B.C. logging tax authorities by phone at 1-877-387-3332 or by email at ITBTaxQuestions@gov.bc.ca.

Additional information

The logging tax paid is typically fully deductible as a credit against your federal income taxes if claimed within three years of filing your federal return.
Contact the Canada Revenue Agency for specific instructions on how to claim the logging tax credit.
If logging income is classified as a capital gain, the logging tax applies to only the taxable portion of the gain.
A processing allowance may be deducted if logs are manufactured into primary or secondary forest products, subject to certain calculations and limits.