Open
Source verified July 11, 2026
Return of fuel charge proceeds to farmers tax credit
Refillable tax credit for farming businesses
Latest source updateLast Update: July 8, 2026Latest change: 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.View change
Latest source update
Last Update: July 8, 2026
Latest change: 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.
Fuel Charge Farmers Tax Credit updated
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.
Funding available
Varies by project
Deadline
Open continuously
Location
Canada
Overview
A refundable tax credit for corporations operating farming businesses. It supports eligible farming expenses attributable to designated provinces and must be claimed with Schedule 63 on the T2 return.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Implement environmental initiatives
- Reduce environmental footprint
Eligible Funding
- Varies by project
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Rural or Northern Residents
Next Steps
1
Determine your project
2
Validate your eligibility
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
Official resources
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.
Contacts
Frequently Asked Questions about the Return of fuel charge proceeds to farmers tax credit Program
What is the Return of fuel charge proceeds to farmers tax credit?
A refundable tax credit for corporations operating farming businesses. It supports eligible farming expenses attributable to designated provinces and must be claimed with Schedule 63 on the T2 return.
Who is eligible for the Return of fuel charge proceeds to farmers tax credit program?
To be eligible for the Return of fuel charge proceeds to farmers tax credit program, you must:
Corporation operating a farming business
At least $25,000 in eligible farming expenses
Expenses linked to designated provinces
What expenses are eligible under Return of fuel charge proceeds to farmers tax credit?
Operating a farming business
Claiming the return of fuel charge proceeds related to eligible farming expenses
Who can I contact for more information about the Return of fuel charge proceeds to farmers tax credit?
You can contact Canada Revenue Agency (CRA) by email at none or by phone at none.
Where is the Return of fuel charge proceeds to farmers tax credit available?
The Return of fuel charge proceeds to farmers tax credit program is available across Canada.
Is the Return of fuel charge proceeds to farmers tax credit a grant, loan, or tax credit?
Return of fuel charge proceeds to farmers tax credit is a Tax Credits
Who are the financial supporters of the Return of fuel charge proceeds to farmers tax credit?
Return of fuel charge proceeds to farmers tax credit is funded by Canada Revenue Agency (CRA)