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Reporting the Canada Carbon Rebate for Small Businesses on your T2 corporation income tax return

Under the current legislation, the Canada Carbon Rebate for Small Businesses is considered assistance received from a government and is subject to taxation. As such, it must be included in taxable income when filing your T2 corporation income tax return for the year in which the rebate was received.

The Government of Canada has proposed that the rebate be tax-free. However, a legislative amendment is required to implement this proposal.

If a legislative amendment is enacted, the CRA will have the authority to process amended T2 corporation income tax returns. Further guidance will be provided at that time.

Filing deadline

On October 1, 2024, the government announced that corporations that file their 2023 tax return after July 15, 2024, and on or before December 31, 2024, would also be eligible for a payment in respect of the 2019-2020 to 2023-2024 fuel charge years. Businesses filing after the initial July 15 deadline would receive their payment at a later date, subject to Royal Assent of legislation implementing this change.

As an eligible CCPC, your total rebate amount will be equal to the number of employees you had in the designated provinces between 2019 and 2023 inclusively, multiplied by a payment rate for each of those provinces and years.

Estimate your rebate

Use this tool to estimate your amount based on your business operations between 2019 and 2023. You can also manually calculate your rebate by referring to:

You should check your eligibility before completing the estimator.

Read the privacy statement for the estimator

The CRA is not collecting or retaining any of the information you enter in this tool. These amounts are only used to help you estimate the Canada Carbon Rebate for Small Businesses payment amount you may be eligible for.

Canada Carbon Rebate for Small Businesses estimator

Eligible years
Years included in the retroactive payment

Your rebate is a single amount that includes all past years you were eligible for.

The years correspond to the calendar year in which a fuel charge year begins. A fuel charge year runs from April 1 to March 31. It is the period of time the federal government sets fuel charge rates for certain backstop provinces on a variety of fuels. Data is collected from the fuel charge year period to determine applicable rates for carbon rebates under various programs.

Read more about fuel charge rates.

Years you may be eligible for (required)
Province of employment
Employee province of employment

An employee’s province or territory of employment is the one their T4 slip was issued for that year (box 10).

Provinces or territories you had employees in during these periods (required)
Number of employees
How to count your employees

Include each employee in only one province or territory per year.

Number of employees in a province or territory
Total of employees for each year

Rate tables for designated provinces

Each province has a set rebate amount per employee for each year they were designated.

British Columbia, Northwest Territories, Nunavut, Quebec, and Yukon are not designated to receive the rebate from 2019 to 2023.

Designated provinces and amounts per employee
Jurisdiction 2019 2020 2021 2022 2023
AlbertaTablenote * Not designated $147 $123 $140 $181
Saskatchewan $110 $271 $244 $298 $233
Manitoba $48 $99 $77 $89 $168
Ontario $26 $68 $75 $86 $146
New BrunswickTablenote * Not designated Not designated Not designated Not designated $87
Nova ScotiaTablenote * Not designated Not designated Not designated Not designated $119
Prince Edward IslandTablenote * Not designated Not designated Not designated Not designated $82
Newfoundland and LabradorTablenote * Not designated Not designated Not designated Not designated $179

Read more about these rates: Canada Carbon Rebate for Small Businesses Payment Amounts, 2019-20 to 2023-24

How employees are considered and counted

For the purposes of this rebate, an employee means a person who was both:

  • Employed by your corporation at any time in the calendar year
  • Issued a T4 statement of remuneration paid by your company

There is no distinction made between full-time, part-time, or seasonal employees.

An employee's province of employment is the province or territory their T4 slip was issued for that year (box 10).

If you issued more than one T4 slip for an employee in different provinces or territories in the same year, include them only once, in the province or territory which their remuneration (box 14) was highest.

For more information on how a province of employment is determined, refer to: Determine the province of employment.

Zero rate

A rate of $0.00 means that the province or territory is not designated to receive the rebate for that year.

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