Canadian Small Businesses Tax Credit for Gasoline Usage

Expenses related to one of the most relied on natural resources may be subsidized for your business through Canadian government funding. Small businesses in Canada are eligible for a tax credit for any gasoline purchased and used in any unlicensed business equipment. If your business buys gasoline for unlicensed equipment that may include farming, construction or manufacturing, you can regain a portion of these related costs at the end of your fiscal year through this valuable business tax credit.

Gasoline Usage Tax Credit Details

Companies qualify for these tax credits if they meet all of these eligibility conditions:

• Used gasoline in Ontario for business, industrial or institutional purposes
• Equipment is not used for recreational purposes
• Equipment used is not licensed or required to be licensed under Highway Traffic Act
• Paid tax to Ontario on the gasoline used
• Keep all records of gasoline use to support your claim for a refund

For any refunds that are over $500 in one year, you need to ensure that you include all supporting documents with your application. Your records must prove the amount you are claiming for a refund.

For refunds less than $500 per calendar year, you do not need supporting documents with your application. However, you should maintain these records for seven years in case of auditing issues from the ministry.

To apply for this tax credit, you simply mail a completed Application for Refund Tax Exempt Usage (TEU) [PDF – 275 KB] to the ministry.

Supporting documents should include a gasoline issue sheet and individual tickets or receipts that record the amount of gasoline used for unlicensed business equipment.

Learn About More Canadian Government Funding for Small Businesses

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