Program & Tax Credit Updates
Ontario Regional Opportunities Investment Tax Credit (ROITC)
The Ontario government has announced that the ROITC program is scheduled to end on December 31, 2026.
The ROITC is a refundable tax credit of up to $45,000 per year, equal to 10% of eligible expenditures incurred to construct, renovate or acquire eligible commercial and industrial buildings in designated regions of Ontario.
Businesses should review their eligible expenditures and consider the timing of their activities to maximize available claims prior to the program’s conclusion.
For more details, please refer to our Ontario Budget Update article.
Extension of the Accelerated Capital Cost Allowance (CCA)
Budget 2025 confirmed that the 2024 Fall Economic Statement proposal to reinstate the Accelerated Investment Incentive (AII) which increases first year CCA deductions (generally three times the usual deduction) on qualifying purchased depreciable property. This incentive also includes accelerated first-year capital cost allowance for manufacturing or processing equipment, clean energy generation and energy conservation equipment and zero-emission vehicles. Please refer to our 2024 year end newsletter for further details about the AII.
Clean Technology Investment Tax Credit – Increased Scrutiny
The Clean Technology Investment Tax Credit is a refundable tax credit equal to 30% of the cost of eligible clean technology purchased and put into use between March 28, 2023 and December 31, 2034. The credit applies to eligible clean energy investments, including solar panels or energy generation systems for your building, heat pumps (air source or ground source) to replace traditional HVAC systems, battery storage systems that do not use fossil fuels, eligible zero-emission equipment such as electric forklifts or commercial EV chargers, and active solar heating and other clean-energy powered heating systems.
To qualify for this credit, your business must be a taxable Canadian company and purchase eligible clean technology property. All equipment must be new, used exclusively in Canada, and not be previously used or leased. In addition, the property must meet the definition of clean technology property, generally aligning with certain assets included in Class 43.1, 43.2, or 56 of Schedule II of the Income Tax Regulations.
Claimants must meet specific labour requirements, including paying prevailing wages to covered workers and making reasonable efforts to ensure that at least 10% of labour hours performed by Red Seal trades are completed by registered apprentices.
CRA is reviewing all claims in relation to the credit. As a result, maintaining thorough documentation and ensuring alignment with contractors on labour requirements is critical.
If you have made, or are considering, investments in clean technology, please reach out to your accountant to discuss eligibility.
Housing Benefit in the Agricultural Industry
As part of an employment arrangement, many farm operations offer a home to employees rent-free or rent at less than fair market value or provide an allowance for rent. In most cases, employer provided housing is a taxable employment benefit and must be calculated and reported through payroll. Where an employee pays less than fair market value rent, the taxable benefit is generally calculated as the net amount between the fair market value of rent and rent actually paid by the employee. If the employer pays utilities or other housing costs, this could increase the taxable benefit. The taxable benefit is typically subject to normal payroll withholdings including income tax, CPP and EI.
Long-term residential rent is exempt from GST/HST and should not be charged on rent to an employee. Further, as the rental income is exempt, the corporation cannot claim ITCs on any expenses related to the housing.
Similar considerations apply when a corporation owns a dwelling where a shareholder lives or someone related to the shareholder lives. If fair market value rent is not paid to the corporation, a taxable shareholder benefit applies. Where housing is provided due to share ownership and not solely due to employment duties, a shareholder benefit is applicable.
Canada Revenue Agency’s website provides additional guidance on the calculation of the taxable benefit, exemptions and applicable payroll deductions here Housing or utilities – Canada.ca. Employees through the Temporary Foreign Workers Program Agricultural stream have specific housing requirements and payroll guidelines to refer to.
A written employment agreement defining the rental arrangement terms should always be completed. For additional information regarding Human Resources considerations – refer to our Human Resources article.
Building the Foundation for a Successful Farm Succession
Our year end 2025 newsletter article, Farm Succession reviewed valuable tax savings tools for farm succession including the Lifetime Capital Gains Exemption (LCGE) and intergenerational rollovers. The LCGE and tax deferred transfer to a child can be combined for qualifying properties to create powerful tax and succession planning opportunities and tax savings, leaving more of your money in your farming operations. However, there are certain ownership, use, time and operating requirements that must be met. This is why proactive planning well in advance of any sale or transfer is so important.
Documentation is key
Understanding and documenting property ownership, structure and history is a foundational first step in succession or estate planning. Before an analysis of the eligibility of significant tax savings provisions can be completed, this information must be identified.
For each property owned, we recommend documenting the following:
- The year the farm property was purchased
- The purchase price
- Who the property was purchased from, a third-party or a relative
- Name(s) is on title to the property
- Who has farmed the property in the past and who farms it today
- The buildings on the property (house, barns, sheds, grain bins, etc.)
- The total acres and the workable acres
Business structure can greatly impact your succession or estate plan. Determine whether the farm property is personally owned, owned in a partnership or by a corporation. Further, determine whether the farm operates under a sole proprietorship, partnership or by a corporation. It is common for example for a farm property to be held personally but farming operations carry on through a corporation or partnership.
The intergenerational rollover rules rely on how the property has been used over time. Generally, the property must have been actively farmed by a qualified individual for more years than it was rented out or used for non-farming purposes. If the farm has been used by multiple generations, review the history of farm use going back to prior generations if the property has been transferred between family members.
The history of property ownership and farm operations is integral to proper analysis and planning for the future of your farming operations. Proactive planning allows farmers to take full advantage of available tax relief provisions and keep more capital within the business for generations to come.
If you are starting to think about transferring your farm assets, reach out to your accountant to discuss any planning that can be completed in advance to create a successful plan.
Have you heard? Ward & Uptigrove is offering informative sessions on planning for the future of your farm! See Farm Succession: Planning Beyond Today for more information.
Come see us at one of our sessions July 22nd New Tecumseth Recreation Centre or August 19th Flesherton Kinplex Hall 11:00 – 12:00.
Farm succession prior related articles and resources:
Summer 2025 Newsletter – Starting Farm Succession Planning Early with your Accountant
Year End 2025 Newsletter – Farm Succession
Deadlines
AgriInvest: 2025 Program Year
- June 30, 2026: For individual participation AgriInvest only, submit 2025 T1163 to Canada Revenue Agency.
- June 30, 2026: For corporations, trusts and special individuals’ participating in AgriInvest only, submit 2025 Statement A to Agricorp.
- September 30, 2026: Final deadline to file with penalty
AgriStability: 2025 Program Year
- June 30, 2026: Submit Statement A (corporations, trusts and special individuals)
- June 30, 2026: Submit Year-end report and Claim form
- September 30, 2026: Final deadline – Report your 2025 farm income to Canada Revenue Agency (with penalty)
AgriStability: 2026 Program Year
- April 30, 2026: Pay Fee, submit new participant form or cancel coverage
- June 30, 2027: Submit Statement A (corporations, trusts and special individuals)
- June 30, 2027: Submit Year-end report and Claim form