Federal Logging Tax Credit
grant_single|update May 3, 2025
Canada
Tax credit for provincial logging tax paid by logging operators
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Federal Logging Tax Credit allows businesses engaged in provincial logging operations to claim a tax credit of up to 6.6667% of their taxable income, based on logging taxes paid or net logging income. This program aims to support logging companies by offsetting their provincial tax obligations related to eligible logging activities.
grant_single_labels|terms_and_conditions
- The credit amount is calculated as the lesser of 66.6667% of logging tax paid to a province or 6.6667% of net logging income in that province.
- The total annual credit across all provinces cannot exceed 6.6667% of taxable income (as defined on line 26000 of your federal tax return, excluding certain lines).
grant_single_labels|projects
- Conducting logging operations within a province where provincial logging tax is paid.
grant_single|admissibleProjectsExample
$ 37,000
Provincial logging tax remittance after community forestry operations
$ 48,000
Payment of provincial logging tax for sustainable timber harvesting
$ 28,000
Logging tax expenses paid for selective harvest in mixed forests
grant_single_labels|admissibility
- The applicant must have conducted logging operations within a Canadian province.
- The applicant must have paid provincial logging tax related to these operations.
- The applicant must have net logging income in the province where the tax was paid.
grant_eligibility_criteria|who_can_apply
- Companies or individuals involved in logging operations who pay provincial logging tax
grant_eligibility_criteria|eligible_expenses
- Provincial logging taxes paid for logging operations conducted in a province.
grant_eligibility_criteria|zone
- Provinces in Canada where logging tax has been paid for logging operations performed in those provinces.
grant_single_labels|apply
1
Confirm eligibility for tax credit
- Confirm you paid logging tax to a province
- Verify the logging operations were performed in that province
2
Calculate eligible credit amounts
- Calculate 66.6667% of logging tax paid for the year in each province
- Calculate 6.6667% of your net logging income for the year in each province
- Determine the lesser amount for each province
3
Calculate total annual credit
- Add up eligible credits from all provinces
- Ensure the total does not exceed 6.6667% of your taxable income from line 26000
- Exclude amounts from lines 20800, 20805, 21000, 21400, 21500, 21900, and 22000
4
Report credit on tax return
- Enter the total credit amount on your tax return
- Ensure all supporting documents are accurate and complete
grant_single_labels|otherInfo
- The credit calculation must be done separately for each province where logging operations occurred.
- The total logging tax credit for all provinces is limited to 6.6667% of taxable income, pursuant to federal tax rules.
- Specific lines on the tax return must be excluded when determining the taxable income applicable to this credit (lines 20800, 20805, 21000, 21400, 21500, 21900, and 22000).
Apply to this program
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