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Return of fuel charge proceeds to farmers tax credit - Canada

Return of fuel charge proceeds to farmers tax credit

Last Update: July 22, 2025
Canada
Refundable tax credit for farming businesses' eligible fuel expenses

At a glance

Eligible Funding
  • Min. $25,000
Timeline
  • Unspecified
Financing Type
Tax Credits
Eligible Industries
  • Agriculture, forestry, fishing and hunting
Funds Providers
Unspecified
Program status
Open

Overview

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.

Financing 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.

Activities funded

  • Operating farming businesses in designated provinces impacted by the federal carbon pollution pricing system.

Eligibility

  • 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.

Who is eligible?

  • Corporations operating farming businesses with gross eligible farming expenses in designated provinces

Eligible expenses

  • Gross eligible farming expenses attributable to farming operations, as defined under the program and incurred in designated provinces.

Eligible geographic areas

  • Ontario
  • Manitoba
  • Saskatchewan
  • Alberta
  • Newfoundland and Labrador (for 2023)
  • Prince Edward Island (for 2023)
  • Nova Scotia (for 2023)
  • New Brunswick (for 2023)

How to 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

Additional information

  • 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

Frequently Asked Questions about the Return of fuel charge proceeds to farmers tax credit Program

Here are answers to the most common questions about the Return of fuel charge proceeds to farmers 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 Return of fuel charge proceeds to farmers tax credit?

How much funding can be received?

What is the deadline to apply?

Is the Return of fuel charge proceeds to farmers tax credit a grant, loan, or tax credit?

Who are the financial supporters of the Return of fuel charge proceeds to farmers tax credit?

Who is eligible for the Return of fuel charge proceeds to farmers tax credit program?

Who can I contact for more information about the Return of fuel charge proceeds to farmers tax credit?

Where is the Return of fuel charge proceeds to farmers tax credit available?

Apply to this program

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