Canada Carbon Rebate for Small Businesses
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What is the Canada Carbon Rebate for Small Businesses
The Canada Carbon Rebate for Small Businesses is a refundable tax credit announced in Budget 2024 to return a portion of federal fuel charge proceeds directly to eligible Canadian-controlled private corporations (CCPCs).
Who is eligible
To be eligible for the retroactive payment with respect to the 2019-2020 to 2023-2024 fuel charge years (a fuel charge year runs from April 1 to March 31), a CCPC must:
- Have employed one or more persons in a designated province in the calendar year in which the fuel charge year begins
- Have had 499 or fewer employees throughout Canada in that calendar year
- Have filed a tax return for its tax year ending in 2023 no later than July 15, 2024
CCPCs do not have to apply for this rebate. Once the Minister of Finance has specified the payment rates for each designated province for an applicable calendar year, we will calculate and automatically issue the rebate amounts to eligible CCPCs.
How the rebate will be calculated
The total rebate amount will be equal to the number of employees the eligible CCPC had in the designated provinces between 2019 and 2023 inclusively, multiplied by a payment rate for each of those provinces and years:
| Jurisdiction | 2019 | 2020 | 2021 | 2022 | 2023 |
|---|---|---|---|---|---|
| Alberta | No | Yes | Yes | Yes | Yes |
| Saskatchewan | Yes | Yes | Yes | Yes | Yes |
| Manitoba | Yes | Yes | Yes | Yes | Yes |
| Ontario | Yes | Yes | Yes | Yes | Yes |
| New Brunswick | No | No | No | No | Yes |
| Nova Scotia | No | No | No | No | Yes |
| Prince Edward Island | No | No | No | No | Yes |
| Newfoundland and Labrador | No | No | No | No | Yes |
A CCPC in a non-designated province/territory will still be eligible for the rebate if it meets the eligibility requirements and had one or more employees in a designated province in the calendar year in which the fuel charge year began.
We will not be able to provide estimated rebate amounts until these payment rates are set.
In addition, it is too early to determine the exact distribution date. We will provide updates on the timelines in the coming months.
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