Canada 2024 Budet, has announced a new Canada Carbon Rebate for Small Businesses. This is designed to refund a portion of federal fuel charge proceeds back to the coffers of eligible Canadian-Controlled Private Corporations(CCPs). CCPC can prepare for possible receipt of this rebate by filing their corporate income tax return for the year ending in 2023 by July 15,2024.
Here are the eligibility criteria for the carbon tax below from CRA website:
"Canada Carbon Rebate for Small Businesses
You may be looking for: Canada Carbon Rebate for individuals
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 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 the Minister of Finance sets these payment rates.
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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