Tax Credits – Logging Tax Credit

Corporations that have paid a logging tax to British Columbia on income earned from logging operations for the year can claim a British Columbia logging tax credit.

The credit is equal to one-third of the logging tax paid as indicated on form FIN542S, Logging Tax Return of Income or FIN542P, Logging Tax Return of Income for Processors.

The credit is non-refundable. There are no carry-forward or carry-back provisions.

For more information on the logging tax credit, please contact the Canada Revenue Agency.

For information on logging tax, please see our Logging Tax pages.

Claiming the credit

The credit is claimed when filing your T2 Corporation Income Tax Return. Enter the amount of the credit you are claiming on line 651 of Schedule 5, Tax Calculation Supplementary - Corporations.

For taxation years ending after December 31, 2008, a Canadian-controlled private corporation may be unable to claim the full credit as a result of the provincial small business corporation income tax rate. The corporation may file an Application for Refund of Logging Tax form FIN 196.

Legislation

Please see Section 19.1 of the British Columbia Income Tax Act.