Line 795 - Return of fuel charge proceeds to farmers tax credit
Line 795 - Return of fuel charge proceeds to farmers tax credit
This refundable tax credit is a way to return fuel charge proceeds under the federal carbon pollution pricing system directly to corporations that operate farming businesses.
A corporation has to incur gross eligible farming expenses of at least $25,000 (subject to exclusions). All or a portion of those expenses must be attributable to the following designated provinces: Ontario, Manitoba, Saskatchewan, or Alberta, and additionally for 2023, Newfoundland and Labrador, Prince Edward Island, Nova Scotia, or New Brunswick.
The credit is equal to eligible farming expenses attributable to a designated province for the tax year, multiplied by the payment rate for the calendar year for the designated province, as specified by the minister of Finance.
You can claim this credit on your tax returns for 2021 and later calendar years.
File a completed Schedule 63, Return of Fuel Charge Proceeds to Farmers Tax Credit, with your return for the year.
On line 795 of the return, enter the amount of the credit you are claiming.
Reference
Section 127.42
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