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Rebates on fuel taxes and the carbon levy

Producers can request a tax rebate if they have been charged a tax on propane for on-farm use such as grain drying. Photo: ratmaner/iStock/Getty Images

Most producers know about the fuel tax exemption on farm gasoline and diesel, but may be confused when it comes to propane, says provincial crop specialist Neil Blue. Only motive propane (used for vehicles) should have the 9.4-cent-per-litre Alberta fuel tax on it.

If producers have been charged that tax for an on-farm use (such as for grain drying), they should submit a tax rebate form, said Blue. As well, the carbon levy on propane (4.62 cents per litre) and natural gas ($1.517 per gigajoule) used for a farm operation can be claimed as a business expense.

For more information, visit the Alberta Agriculture website.

The Remote Area Heating Allowance Program may help some producers without access to natural gas. It offers a rebate of up to 25 per cent of the cost of using propane or heating oil used for heating.

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  • Monkeeworks

    Income tax claims do not reimburse 100% what you spend. I pay carbon tax on my propane, then I pay GST on the carbon tax. Carbon taxes benefit our governments only. No tax ever helps the public. In BC the carbon tax was supposed to return to the area it came from. It now goes into general revenue to be wasted by our government.