Canada Carbon Rebate for Small Businesses

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

• File 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 the applicable fuel charge 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 fuel charge year between 2019-2020 and 2023-2024 inclusively will be calculated for each designated province in which the eligible CCPC had employees in the calendar year in which the fuel charge year began. 

					Designated provinces by fuel charge year
Jurisdiction	2019-2020	2020-2021	2021-2022	2022-2023	2023-2024
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 that calendar year, multiplied by a payment rate specified by the Minister of Finance for the designated province for the corresponding fuel charge year.

CRA will not be able to provide estimated rebate amounts until the Minister of Finance sets these payment rates.

In addition, it is too early to determine the exact distribution date. CRA will provide updates on the timelines in the coming months.