B.C. Farmers' Food Donation Tax Credit
Effective for the 2016 to 2018 tax years, the B.C. government proposes to introduce a Farmers’ Food Donation Tax Credit. The credit will be a new non-refundable income tax credit to encourage farmers and farming corporations to donate certain agricultural products that they produce in B.C. to registered charities, such as food banks or school meal programs.
The credit will be 25 per cent of the eligible amount of all of the farmer’s or farming corporation’s qualifying gifts for the tax year. The credit will be available to farmers, their spouse or common-law partners, or farming corporations who make a gift of agricultural product after February 16, 2016 and before January 1, 2019.
The Farmers’ Food Donation Tax Credit is in addition to any charitable and other gift tax credit claimable.
Claiming the Credit
Farmers, farmers’ spouses or common-law partners, may begin claiming the credit on their T1 income tax return for the 2016 tax year.
Farming corporations may begin claiming the credit on their T2 income tax return for tax years ending after February 16, 2016.
The credit must be claimed with the charitable and other gift tax credit, within five tax years of the donation of agricultural product being made.
More details may be found on the frequently asked questions page.