Line 47556 – Other refundable credits

Return of Fuel Charge Proceeds to Farmers Tax Credit

Beginning in 2021, the Government of Canada proposes a new refundable tax credit, the Return of Fuel Charge Proceeds to Farmers Tax Credit. The purpose of this credit is to return a portion of the fuel charge proceeds from the federal carbon pollution pricing system directly to farming businesses in provinces that do not currently have a system that meets the federal requirements. These designated provinces are Ontario, Manitoba, Saskatchewan and Alberta.

Eligible farming businesses include self-employed farmers and partners in farming partnerships that meet the following conditions:

• They actively engage in either the management of, or daily activities related to, the earning of income from farming
• They incur total farming expenses for all businesses of $25,000 or more, which are all or partially attributable to designated provinces

Completing your tax return

Complete Form T2043, Return of Fuel Charge Proceeds to Farmers Tax Credit, and enter the amount from line 67078 on line 47556 of your return.

Forms and publications

• Income Tax Package – Guide, return, and schedules
• Form T2043, Return of Fuel Charge Proceeds to Farmers Tax Credit