Grow Food, Give Back and Get Credit for it - Presley & Partners - Presley & Partners

Blog

Advice and articles from our team leaders, specifically for business owners.
January 15th, 2019

Grow Food, Give Back and Get Credit for it

Kathryn Jones, CPA, CA

Provincial tax credit for donating food benefits everyone

Are you a farmer who grew a little too much or has space to grow a little extra? Or maybe you raise cows or poultry? If you’re a farmer and plan to grow, raise or harvest a little extra, you can donate it and get a provincial tax credit!

For 2019 and 2020 the BC provincial government is continuing to offer an extra incentive to farmers and farming corporations to donate food.

This tax credit is a non-refundable tax credit that encourages farmers and farming corporation to donate food items to registered charities, such as food banks or school food programs. The credit is 25 per cent of the total fair market value of the items donated.

So, if a farmer grows an extra $1,000 of food and donates it to the local food bank or other charity, they can get a donation receipt for $1,000 – plus an additional provincial tax credit for $250.

Now that’s an incentive!

Eligible products are diverse (and delicious!)

The types of agriculture products that are eligible include meat products, eggs, dairy, fish, seafood, fruits, vegetables, grains, pulses, herbs, honey, maple syrup, mushrooms, nuts and other products that have been grown, raised or harvested on a farm in BC.

With so much need it’s a great way to give back and get extra credit for it.

So if you or someone you know can grow a little extra to pass along, make sure you keep the paper work to go with it and see the extra deduction on your personal or corporate taxes.

Have questions about this or other tax credits? Talk to your local accountant.

Kathryn Jones is a Manager, Chartered Professional Accountant and CA with Presley & Partners, CPAs and Business Advisors, in Courtenay, BC. She can be reached at 250.338.1394 or kjones@presleyandpartners.com.