Logging tax credit for corporate income tax

You can claim a provincial logging tax credit if you paid logging tax to B.C. on income earned from logging operations for the year. The amount you can claim is equal to one-third of the logging tax payable shown on line 770 of the Logging Tax Return of Income (FIN 542S) or Logging Tax Return of Income for Processors (FIN 542P).

Claiming the credit

You claim the credit when you file your T2 Corporation Income Tax Return. Enter the amount of the provincial logging tax credit you are claiming on line 651 of Schedule 5, Tax Calculation Supplementary – Corporations.

If you’re a Canadian-controlled private corporation, for tax years ending after December 31, 2008, you may be unable to claim the full credit because of the provincial small business corporation income tax rate. In this case, you may file an Application for Refund of Logging Tax (FIN 196) (PDF, 260KB) with the ministry.

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

Legislation

The following legislation applies to the logging tax credit program:

• Income Tax Act (B.C.) Section 19.1