Since April 2019, the federal carbon pollution pricing system has added a fuel charge to fuel delivered in Ontario.  

Ontario farmers have been eligible to receive an exemption from the fuel charge for fuels (gasoline and light fuel oil) used in eligible farming machinery, by completing an exemption form (L402) available through Canada Revenue Agency (CRA).

Eligible farming machinery is property that is primarily used for the purposes of farming and that is a farm truck or tractor, a vehicle not licensed to be operated on a public road, an industrial machine, or stationary or portable engine.  The exemption form needs to be filled out and provided to your fuel distributor. Access the form – L402 – Fuel Charge Exemption Certificate.

If you have paid the carbon tax in error on exempted fuels, farmers are encouraged to apply for a rebate. Access the form – B403 – Rebate for Fuel Charge Paid in Error.