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Federal Logging Tax Credit
Tax credit for provincial logging tax paid by logging operators
Last Update: March 4, 2026
Funding available
Up to 7% of project cost
Timeline
- Open continuously
Location
Canada
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.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Reduce environmental footprint
Eligible Funding
- Up to 7% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Agriculture, forestry, fishing and hunting
Location
- Canada
Legal structures
- For-profit business
- Sole proprietorship
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Conducting logging operations within a province where provincial logging tax is paid.
Eligibility
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.
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).
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.
What is the Federal Logging Tax Credit?
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.
How much funding can be received?
Federal Logging Tax Credit Funds up to 7% of admissible expenses.
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
What expenses are eligible under Federal Logging Tax Credit?
Conducting logging operations within a province where provincial logging tax is paid.
Where is the Federal Logging Tax Credit available?
The Federal Logging Tax Credit program is available across Canada.
Is the Federal Logging Tax Credit a grant, loan, or tax credit?
Federal Logging Tax Credit is a Tax Credits
Who are the financial supporters of the Federal Logging Tax Credit?
Federal Logging Tax Credit is funded by Government of Canada