The federal government said it plans to extend the income tax deferral period for Prairie livestock producers who received compensation for animals ordered to be destroyed due to the 2024 and 2025 bovine tuberculosis events.
Ottawa said Friday proposed amendments to the Income Tax Act that would extend the current one-year income tax deferral for affected producers in Alberta, Saskatchewan and Manitoba. The move is meant to address a key problem for ranchers who received compensation under the Health of Animals Act but were unable to rebuild their herds within the same tax year.
Under the current rules, compensation for animals ordered destroyed can only be deferred for one year. The proposed change would stretch that timetable out over several years, from 2026 through 2030, recognizing that herd rebuilding often takes much longer after a disease event. Ottawa said the measure was developed after consultations with producers and in collaboration with the Canadian Cattle Association.
Producers who received amounts as compensation in 2025 or 2026 under the Health of Animals Act because of the forced destruction of their livestock due to the 2024 and 2025 bovine tuberculosis outbreaks would have the option of including those amounts in income for tax purposes, as follows:
The federal government said the goal is to give producers more flexibility to manage their taxable income while they work to replace breeding stock and restore normal operations. In many cases, replacement purchases can take several years, especially when disease-related herd losses are significant.
