Canada Carbon Rebate for Small Businesses
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Update on the taxability of the Canada Carbon Rebate for Small Businesses
On March 26, 2026, the Government of Canada passed legislation that makes the Canada Carbon Rebate for Small Businesses non-taxable for all fuel charge years. For more information on what this means for your business and what steps you may need to take, go to Tax treatment of the rebate.
The Canada Carbon Rebate for Small Businesses is a refundable tax credit announced in Budget 2024 to return a portion of the federal fuel charge proceeds collected between 2019-2020 and 2024-2025 directly to eligible Canadian-controlled private corporations (CCPCs).
You do not need to apply for this rebate. If you are eligible, you will automatically receive the payment.
Removal of fuel charge
On March 15, 2025, the Government of Canada made regulations that cease the application of the federal fuel charge, thereby eliminating the Canada Carbon Rebate for Small Businesses. The return of proceeds for the 2024-2025 fuel charge year will be the final payment.