Canada Carbon Rebate for Small Businesses

The Government of Canada is set to return carbon tax revenues to small businesses through the Canada Carbon Rebate for Small Businesses program. This rebate applies to eligible Canadian-controlled private corporations (CCPCs), including Indigenous CCPCs, and is designed to provide financial relief corresponding to federal fuel charges.

Eligibility Criteria:

To qualify for the rebate, your corporation must meet the following requirements for the tax year ending in 2023:

• You must be a CCPC at all times.
• You must file your tax return no later than July 15, 2024.

Additionally, to receive a rebate for a specific fuel charge year, your business must:

• Employ one or more persons in a designated province during the calendar year when the fuel charge year begins.
• Have no more than 499 employees across Canada in that calendar year.

Designated Provinces:

Eligible businesses operating in the following provinces may receive a rebate for fuel charge years between 2019 and 2023:

• Alberta: 2020 to 2023
• Saskatchewan: 2019 to 2023
• Manitoba: 2019 to 2023
• Ontario: 2019 to 2023
• New Brunswick: 2023
• Nova Scotia: 2023
• Prince Edward Island: 2023
• Newfoundland and Labrador: 2023

Note that businesses in British Columbia, Yukon, Northwest Territories, Nunavut, and Quebec are not designated. However, businesses in non-designated provinces or territories may still qualify if they employed individuals in designated provinces during the applicable fuel charge year.

Rebate Disbursement:

You do not need to apply for the rebate. The Canada Revenue Agency (CRA) will automatically calculate and issue the rebate to eligible CCPCs that filed their 2023 tax return by July 15, 2024. Payments will be made as follows:

• By December 16, 2024, for businesses registered for direct deposit.
• By December 31, 2024, for businesses receiving payment by cheque.

Preparation for Rebate:

If you believe your business qualifies for the rebate, ensure the following steps are completed:

1. Confirm that your 2023 tax return has been filed by July 15, 2024.
2. Ensure your business information is accurate and up to date, including address and contact details.
3. Sign up for direct deposit to receive your rebate faster.
4. Ensure that any outstanding tax returns are filed.

For more information about the Canada Carbon Rebate for Small Businesses, visit the official CRA website.

If you need help with small business advisory you can always book an appointment with us. Also, you may email your questions and our team would be so happy to help you.