On March 22, 2025, the Minister of Finance made an announcement to cease the application of the federal fuel charge, effective April 1, 2025.
Consequently, for 2025, a corporation’s tax credit payment rate for the Return Fuel Charge Proceeds to Farmers is nil, replacing the prior January announcement of payment rates for 2025-26.
To apply the nil rate on the Schedule 63 in TaxCycle T2, override the number of days in the 2025 tax year in Part 10 to zero.
The Canada Revenue Agency (CRA) has confirmed that the T2 Schedule 63 can be updated in tax software for 2025. We have updated the T2SCH63 in the latest TaxCycle version to reflect this change.
