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Federal Logging Tax Credit
Last Update: March 4, 2026
Canada
Tax credit for provincial logging tax paid by logging operators
Tax Credits
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.
At a glance
Funding available
Financing goals
- Reduce the ecological 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
Activities funded
- Conducting logging operations within a province where provincial logging tax is paid.
Examples of admissible projects:
$ 48,000
Payment of provincial logging tax for sustainable timber harvesting
$ 28,000
Logging tax expenses paid for selective harvest in mixed forests
$ 37,000
Provincial logging tax remittance after community forestry operations
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
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
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).
