Federal Carbon Price Relief Information
May 6, 2022 | OFVGA
Under the federal government’s Greenhouse Gas Pollution Pricing Act, fuel (i.e. gasoline and diesel) used for farm use is exempt from the federal price on carbon (commonly referred to as the carbon tax). More details on exemptions and relief of the price on carbon can be found here.
To be eligible for this exemption, the fuel must be used for eligible farming activities, as defined below:
Eligible farming activity means either of the following:
- the operation of eligible farming machinery on a farm for the purposes of farming
- the operation of eligible farming machinery for the purposes of going from a location at a farm to another location at a farm
Eligible farming machinery means property that is primarily used for the purposes of farming and that is a farm truck or a tractor.
To be exempt from paying the price on carbon, growers must fill out the Fuel Charge Exemption Certificate for Farmers form. Once filled out, this form must be submitted to your fuel supplier. It is recommended that growers keep a copy for their own records. This form should not need to be filled out more than once, unless you are working with more than one supplier or if you switch fuel suppliers. Having this form filled out and on file with your supplier should ensure the price on carbon will not be applied to the fuel bill.