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:

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 rebate amount for an applicable calendar year between 2019 and 2023 inclusively will be calculated for each designated province in which the eligible CCPC had employees in that calendar year. 

Designated provinces
Jurisdiction 2019 2020 2021 2022 2023
Alberta   Yes Yes Yes Yes
Saskatchewan Yes Yes Yes Yes Yes
Manitoba Yes Yes Yes Yes Yes
Ontario Yes Yes Yes Yes Yes
New Brunswick         Yes
Nova Scotia         Yes
Prince Edward Island         Yes
Newfoundland and Labrador         Yes

This rebate amount will be equal to the number of persons employed by the eligible CCPC in a designated province in a calendar year, multiplied by a payment rate specified by the Minister of Finance for the designated province for the corresponding calendar year.

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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