BC Farmer Tax Credit
The BC Farmers’ Food Donation Tax Credit is a non-refundable income tax credit to encourage farmers and farming corporations to donate certain agricultural products to registered charities.
What is the BC Farmers’ Food Donation Tax Credit?
The BC Farmers’ Food Donation Tax Credit is a non-refundable income tax credit to encourage farmers and farming corporations to donate certain agricultural products to registered charities.
The credit is 25 percent of the eligible amount of a farming corporation’s qualifying gifts for the tax year.
The credit is available to farmers (or their spouses/common-law partners) who make a gift of agricultural product between February 2016 and January 2027.
The farmers’ food donation tax credit is in addition to any charitable and other gift tax credit claimable.
Farmers and their spouses or common-law partners may also claim this credit.
Who is Eligible?
To be eligible for this tax credit, your donation must be an agricultural product, such as meat, eggs or dairy products, fruits, or vegetables, that have been grown, raised or harvested on a BC farm.
The eligible donees must follow the same requirements that they follow when issuing receipts for any charitable donation of goods. The receipt must include a detailed description of the goods donated so that farmers or farming corporations and tax administrators can determine whether all or some of the goods donated are agricultural products eligible for this tax credit.
Determining the worth of donated items:
Eligible donees must use the fair market value of the agricultural products donated.
The fair market value is the highest dollar value of the agricultural product in an open and unrestricted wholesale or retail market.
The value should be based on the quantity and quality of the agricultural product.
- For further information on the BC Farmer Tax Credit, please visit: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/farmers-food-donation
- For Frequently Asked Questions: https://www2.gov.bc.ca/gov/content/taxes/income-taxes/corporate/credits/farmers-food-donation/faqs
- For the T2 Corporation Income Tax Return Form: https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2.html
If you would like further information, please contact Craig Edwards, Director of Operations, craige@foodbank.bc.ca.
BC Farmers Get More By Giving Back - Country Life In BC
“Imagine the impact this could have on hungry families in our province. Food Banks Canada found that more than 16% of BC residents are living with food insecurity – those who cannot afford the quality and quantity of food they need to avoid hunger. This can be skipping meals so their children can eat, not buying fruits and vegetables or having to go to work or school hungry. This is the harsh reality for our neighbours, friends and community members who are in need. Every day, the food bank hears the stories of people who need our help and who benefit directly from the generosity of our farmers.”
