Partial exemption from carbon tax for greenhouse growers

Effective April 1, 2023, eligible greenhouse growers can claim a partial exemption from carbon tax on natural gas and propane they use for an eligible purpose.

On this page

• Who’s eligible
• How to calculate the partial exemption
• How to claim the partial exemption
• Refunds

Who's eligible

A partial exemption from carbon tax is available to you if you’re an eligible greenhouse grower who uses natural gas and propane for an eligible purpose.

You’re an eligible greenhouse grower if you:

• grow qualifying crops in eligible greenhouses,
• in the previous 12 months, had gross revenues of $20,000 or more from the sale of qualifying crops, and
• in the next 12 months, have a reasonable expectation of gross revenues of $20,000 or more from the sale of qualifying crops.

An eligible greenhouse is a greenhouse in B.C. that's used more than 90% for growing qualifying crops.

An eligible purpose means the fuel is used to heat an eligible greenhouse or to supplement carbon dioxide in an eligible greenhouse in order to grow or produce plants.

Qualifying crops are any of the following if they're grown commercially in eligible greenhouses:

• Vegetables
• Fruits
• Bedding plants
• Flowers
• Ornamental plants
• Tree seedlings
• Nursery landscape plants

 How to calculate the partial exemption

The partial exemption reduces carbon tax on qualifying natural gas and qualifying propane by 80%.

To calculate the reduced carbon tax rate, multiply the full carbon tax rate by 0.20.

Example:

You purchase natural gas and propane in June 2023 when the carbon tax rates are 12.39 ¢/m³ for natural gas and 10.06 ¢/litre for propane. You claim the partial exemption and use the following reduced carbon tax rates for those fuels:

Carbon tax rates in June 2023 after exemption has been applied

Fuel type	Full carbon tax rate in June 2023	Reduced carbon tax rate in June 2023
Natural gas	12.39 ¢/cubic metre	2.478 ¢/cubic metre (12.39 X 0.20)
Propane	10.06 ¢/litre	2.012 ¢/litre (10.06 X 0.20)

How to claim the partial exemption

To claim the partial exemption from carbon tax, complete a Certificate of Partial Exemption – Greenhouse Growers (FIN 463) (PDF, 187KB) and provide it to the seller at or before the time of purchase.

You may make additional qualifying purchases using the same certificate, as long as the information on the certificate applies to the additional purchases.

If you do not complete the certificate, you’re responsible for paying the full tax as applicable even if you qualify for the partial exemption.

If you claim the exemption but use the fuel for a fully taxable purpose, you must self-assess the additional carbon tax due. For more information about self-assessing, see Self-Assessing Motor Fuel and Carbon Tax (MFT-CT 006) (PDF,187KB).

Refunds

Purchasers

If you’re an eligible greenhouse grower who paid carbon tax at the full applicable rate on natural gas or propane used on or after April 1, 2023 for an eligible purpose, you may qualify for a carbon tax refund. To claim a refund, use the Application for Refund of Carbon Tax Greenhouse Growers - Purchaser (FIN 110A) (PDF, 200KB) and follow the instructions provided on the form.

For more information, see Carbon Tax Refunds for Purchasers (CT 002) (PDF, 190KB).

Sellers

If you're a seller who paid security at the full applicable rate on propane and then sold it partially exempt at retail to an eligible greenhouse grower, you may qualify for a refund. To claim a refund, use the Application for Refund of Carbon Tax Greenhouse Growers - Seller (Propane) (FIN 110B) (PDF, 200KB). 

For more information, see Refund for Deputy Collectors and Retail Dealers (MFT-CT 007) (PDF, 160KB).

Natural gas retail dealers

If you’re a natural gas retail dealer, you claim natural gas carbon tax refunds using your monthly natural gas tax return. You file this return through your CNG account using eTaxBC.