Federal Logging Tax Credit

Q: How much funding can be received?

Federal Logging Tax Credit Funds up to 7% of admissible expenses.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Federal Logging Tax Credit a grant, loan, or tax credit?

Federal Logging Tax Credit is a Tax Credits

Q: Who are the financial supporters of the Federal Logging Tax Credit?

Federal Logging Tax Credit is funded by Government of Canada

Q: Who is eligible for the Federal Logging Tax Credit program?

To be eligible for the Federal Logging Tax Credit program, you must: • Paid logging tax to a province for logging operations performed in that province • Operated logging activities within the relevant province

Q: Who can I contact for more information about the Federal Logging Tax Credit?

You can contact Government of Canada.

Q: Where is the Federal Logging Tax Credit available?

The Federal Logging Tax Credit program is available across Canada.

Last Update: July 22, 2025

Canada

Tax credit for provincial logging tax paid by logging operators

At a glance

Eligible Funding

Up to 7% of project cost

Timeline

Unspecified

Financing Type

Tax Credits

Eligible Industries

Agriculture, forestry, fishing and hunting

Funds Providers

Unspecified

Program status

Open

Overview

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.

Financing 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).

Activities funded

Conducting logging operations within a province where provincial logging tax is paid.

Examples of admissible projects:

$ 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

Eligibility

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.

Who is eligible?

Companies or individuals involved in logging operations who pay provincial logging tax

Eligible expenses

Provincial logging taxes paid for logging operations conducted in a province.

Eligible geographic areas

Provinces in Canada where logging tax has been paid for logging operations performed in those provinces.

How to apply

Confirm eligibility for tax credit

Confirm you paid logging tax to a province
Verify the logging operations were performed in that province

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

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

Report credit on tax return

Enter the total credit amount on your tax return
Ensure all supporting documents are accurate and complete

Additional information

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

Frequently Asked Questions about the Federal Logging Tax Credit Program

Here are answers to the most common questions about the Federal Logging Tax Credit. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.