British Columbia Logging Tax Credit

What’s in this article?

 

What is this?

The British Columbia (B.C.) Logging Tax Credit is a non-refundable tax credit on logging tax that you paid to B.C. on income earned from logging operations for the year. The credit amount you can claim is one third of the logging tax payable shown on line 770 of the FIN 542S: Logging Tax Return of Income or FIN 542P: Logging Tax Return of Income for Processors.

You can claim the logging tax credit on form BC428: British Columbia Tax. This tax credit cannot be carried back or forward to another year.

 

Am I eligible?

If you paid logging tax on income earned from logging operations in British Columbia, you may be able to claim this tax credit.

Logging operations include:

  • The sale of logs or standing timber;
  • The sale of the right to cut standing timber;
  • The sale of primary and secondary forest products produced from logs (e.g. lumber, pulp and paper, shakes); and
  • The export of logs.

If you processed B.C. logs into primary and secondary forest products such as pulp, paper, lumber etc., you must complete and file FIN 542P. If you only had income from the sale of B.C. logs and did not process them, you must file FIN 542S. Use the amount shown on line 770 of either tax return to calculate the logging tax credit claimable on BC428.

 

Where do I claim this?

Important: Before you begin, make sure you tell us that you lived in BRITISH COLUMBIA on December 31st of the 2015 tax year, in H&R Block’s tax software. To do this:

  1. Click the HOME tab.
  2. Click the ABOUT YOU icon, and click the Your residence link. You will find yourself here:

Once you have confirmed your residence location, claim the British Columbia Logging Tax Credit by following these steps:

  1. Click the PREPARE tab.
  2. Click the YOUR YEAR IN REVIEW icon. You will find yourself here:
  3. Click the checkbox labelled I worked for myself and then select the province or territory of your self-employment.
  4. Scroll to the bottom of the page and click Continue.
  5. You will find yourself on the PREPARE tab, under the EMPLOYMENT icon.
  6. Under the CREDITS AND REBATES heading, click the checkbox labelled British Columbia logging tax credit.
  7. Click Continue.

When you arrive at the page for the British Columbia logging tax credit, enter your information into the tax software.

 

Where can I learn more?