
Return of fuel charge proceeds to farmers tax credit
grant_single|update May 3, 2025
Canada
Refundable tax credit for farming businesses' eligible fuel expenses
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|minCount
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 Tax Credit for the return of products resulting from the fuel charge to farmers is a refundable financial aid intended for agricultural companies that incur costs related to the fuel charge. This program aims to compensate eligible agricultural businesses for their expenses incurred in certain provinces, as part of the federal carbon pricing system.
grant_single_labels|terms_and_conditions
- The credit amount is calculated by multiplying eligible farming expenses attributable to a designated province by the payment rate for that province and tax year, as specified by the Minister of Finance.
grant_single_labels|projects
- Operating farming businesses in designated provinces impacted by the federal carbon pollution pricing system.
grant_single_labels|admissibility
- The applicant must be a corporation operating a farming business.
- The corporation must incur gross eligible farming expenses of at least $25,000 (subject to exclusions).
- Eligible expenses must be attributable to one or more of the following provinces: Ontario, Manitoba, Saskatchewan, Alberta, and for 2023, also Newfoundland and Labrador, Prince Edward Island, Nova Scotia, or New Brunswick.
grant_eligibility_criteria|who_can_apply
- Corporations operating farming businesses with gross eligible farming expenses in designated provinces
grant_eligibility_criteria|eligible_expenses
- Gross eligible farming expenses attributable to farming operations, as defined under the program and incurred in designated provinces.
grant_eligibility_criteria|zone
- Ontario
- Manitoba
- Saskatchewan
- Alberta
- Newfoundland and Labrador (for 2023)
- Prince Edward Island (for 2023)
- Nova Scotia (for 2023)
- New Brunswick (for 2023)
grant_single_labels|apply
1
Confirm eligibility requirements
- Ensure your corporation operates a farming business
- Verify that your gross eligible farming expenses are at least $25,000
- Confirm expenses are in designated provinces (e.g., Ontario, Manitoba, Saskatchewan, Alberta, and for 2023: Newfoundland and Labrador, Prince Edward Island, Nova Scotia, or New Brunswick)
2
Calculate credit amount
- Calculate the amount of gross eligible farming expenses for the tax year attributable to each designated province
- Use the payment rate for each province as specified by the minister of Finance
- Determine your total refundable tax credit amount
3
Prepare Schedule 63
- Complete Schedule 63, Return of Fuel Charge Proceeds to Farmers Tax Credit, for the appropriate tax year
- Gather supporting documentation of eligible expenses and business operations
- Ensure all information is accurate and up to date
4
File tax return with Schedule 63
- File your completed Schedule 63 with your corporation's tax return for the year
- Enter the credit amount on line 795 of the federal tax return
grant_single_labels|otherInfo
- The credit is available for 2021 and subsequent calendar years.
- The payment rate for the credit is determined annually by the minister of Finance.
- Corporations must use Schedule 63 when filing for this credit.
Apply to this program
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