B.C. Farmers' Food Donation Corporate Income Tax Credit
The farmers' food donation tax credit is effective for the 2016 to 2018 tax years. It is a 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 is 25 per cent of the eligible amount of a farming corporation’s qualifying gifts for the tax year. The credit is available to 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.
Budget 2018 proposes to extend the farmers’ food donation tax credit by one year to permit gifts of agricultural product made before January 1, 2020 to be eligible for the credit.
Claiming the Credit
Farming corporations may claim the credit on their T2 Corporation Income Tax Return for tax years ending after February 16, 2016. Enter the amount of the credit you're claiming on line 683 of Schedule 5, Tax Calculation Supplementary - Corporations.
The amount of the gift qualifying for the farmer's food donation tax credit must be included in the amount deducted for gifts under the federal Income Tax Act for the same taxation year. The amount must be claimed within five tax years of the donation of agricultural product being made.
More details may be found on the frequently asked questions page.
Farmers and their spouses or common-law partners may also claim this credit.
The following legislation applies to the B.C. farmers’ food donation tax credit: