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Tax, Uncategorized

New Tax Credit Benefits Farmers

Tax credits are one way the government supports businesses and farmers are no exception. On September 29, 2014 the Ministry of Agriculture, Food and Rural Affairs announced a new incentive called the Food Donation Tax Credit for Farmers.  The incentive encourages contributions to local food programs, food banks and student nutrition programs. In return, farmers receive a tax credit valued at 25 per cent of the fair market value for donated agricultural products.

Credits can be claimed for donations made to eligible recipients as of January 1, 2014. Claimants must be Ontario residents in the farming business or corporations that carry on the business of farming. Individuals should also claim an Ontario charitable donation tax credit and farm corporations must also claim the donation as a charitable deduction.  

Receipts for values under $1000 can be provided by registered charities following Canada Revenue Agency guidelines for determining fair market value available at: http://www.cra-arc.gc.ca/chrts-gvng/chrts/prtng/rcpts/dtrmnfmv-eng.html.

The new program is the first of its kind in Canada and benefits both farmers and local charitable food distributors.

For more details about the tax credit, visit: Ontario.ca/FoodDonation


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