top of page
  • Writer's pictureImma Dike-Shittu

Canada Carbon Rebate for Small Businesses

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 ".


2 views0 comments

Recent Posts

See All

Change My Return and ReFILE

Change my return and ReFILE The Canada Revenue Agency (CRA) strives to continually improve its services to individuals. These two services allow individuals to request changes to their returns online.

Comments


bottom of page