Source change captured:
Return of fuel charge proceeds to farmers tax credit
Get notified when Return of fuel charge proceeds to farmers tax credit reopens
Overview
At a glance
Funding available
- Implement environmental initiatives
- Reduce environmental footprint
- Varies by project
Eligible candidates
- All industries
- Canada
- For-profit business
- All revenue ranges
- All organization sizes
- Rural or Northern Residents
Next Steps
Availability timeline
Activities funded
- Operating a farming business
- Claiming the return of fuel charge proceeds related to eligible farming expenses
Documents Needed
- Completed Schedule 63
- Corporate T2 income tax return
- T5013 slips or partner allocation letters, if applicable
Sources and recorded changes
- Source change captured
- Change recorded
- Record updated
A captured source change or record update does not confirm eligibility. Check the funder’s current rules before applying.
Fuel Charge Farmers Tax Credit updated
The Schedule 63 form and related rate pages now show the claim instructions and the 2024 and 2025 payment rates for the Return of Fuel Charge Proceeds to Farmers Tax Credit.
The Schedule 63 form now shows the claim instructions for the Return of Fuel Charge Proceeds to Farmers Tax Credit, including that corporations or corporations that are members of a partnership with at least $25,000 in farming expenses can file the schedule with their T2 return. The form also shows the eligible designated provinces and the allocation rules used to claim the credit across provinces. The related payment-rate pages now show the 2024 and 2025 rates at $2.29 and $2.50 per $1,000 in eligible farming expenses for Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. A prior rate page for 2023-24 shows $1.86 per $1,000 for Ontario, Manitoba, Saskatchewan, and Alberta, and $1.40 per $1,000 for New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
Program guide
Application form
Eligibility
Who is eligible?
- Corporations operating a farming business
- Corporations that are members of a farming partnership
Who is not eligible
- Businesses with less than $25,000 in gross eligible farming expenses
- Farming operations without expenses in a designated province
Ineligible Costs and Activities
- Claims with gross eligible farming expenses below $25,000
- 2021 and 2022 expenses attributable to Newfoundland and Labrador, Prince Edward Island, Nova Scotia, and New Brunswick
- 2022 expenses attributable to NL, PE, NS, and NB under the 2024 schedule
Eligible geographic areas
- Ontario
- Manitoba
- Saskatchewan
- Alberta
- Newfoundland and Labrador
- Prince Edward Island
- Nova Scotia
- New Brunswick
Selection criteria
- Eligible farming expenses must be attributable to designated provinces
- The relevant proportion is used when operations span multiple provinces
- Partnership claims are based on each member’s specified proportion
How to apply
- Step 1
- Complete Schedule 63 for the tax year.
- Calculate eligible farming expenses and provincial allocations.
- Step 2
- Prepare the T2 Corporation Income Tax Return.
- Attach Schedule 63 to the return.
- Step 3
- Enter the credit amount on line 795 of the T2 return.
- File the return with CRA.
Processing and Agreement
- The claim is filed with the T2 corporation income tax return
- CRA processes the credit as part of the tax return assessment
- The claimed amount is entered on line 795 of the T2 return
Additional information
- These payment rates apply to eligible farming expenses incurred in the 2024 and 2025 calendar years, corresponding to the 2024-25 and 2025-26 fuel charge years.
