A new tax credit is being introduced in 2016 for farmers in British Columbia.
The BC Farmers’ Food Donation Tax Credit is a credit to encourage farmers to donate agricultural products to eligible charities that are involved in the distribution of food to people in need. Eligible charities would include food banks or school meal programs.
This non-refundable credit will be equal to 25% of the fair market value of the food donated. This credit is in addition to the donation credit that the taxpayer would have received on the donation of the agricultural product.
Eligible agricultural products include items such as fruits and vegetables, meat products, eggs or dairy products, fish, seafood, or other commodities that have been grown and harvested on a farm in BC.
An eligible agricultural product does not include commodities in which there has been additional processing done to bring the item to market, such as apple pies, pickles, beef jerky, or preserves. It will also not include live animals.
The value of the credit will be equal to the highest dollar value a farmer could receive for that product in an unrestricted wholesale or retail market.
The tax credit will be available to taxpayers who make an eligible gift of agricultural products after February 16, 2016. The credit will also be available for the tax years 2017 and 2018.