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info@wiseraccounting.com
Inquire about Tax Services:
403-970-1402
December 3, 2024
2 min read mins read 
0 Comments The Canada Carbon Rebate for Small Businesses was introduced in the 2024 federal budget to assist small and medium-sized enterprises (SMEs) impacted by carbon pricing. This initiative aims to return a portion of carbon tax revenues to eligible businesses, helping them manage increased operational costs and promoting economic stability.
To qualify for the carbon rebate, businesses must meet the following criteria:
– Canadian-controlled private corporations (CCPCs).
– Issue T4 slips for employees.
– Employ fewer than 500 people.
– Operate in provinces where the federal fuel charge applies, such as Alberta, Saskatchewan, and others.
The rebate process is automatic; businesses do not need to submit an application. The Canada Revenue Agency (CRA) calculates and issues rebates based on information from corporate income tax returns (T2 forms) and T4 slips submitted for each tax year.
Below are the specified payment rates per employee for small and medium-sized businesses by province from 2019 to 2024:
| Province | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 |
| Alberta | n/a | $147 | $123 | $140 | $181 |
| Saskatchewan | $110 | $271 | $244 | $298 | $233 |
| Manitoba | $48 | $99 | $77 | $89 | $168 |
| Ontario | $26 | $68 | $75 | $86 | $146 |
| New Brunswick | n/a | n/a | n/a | n/a | $87 |
| Nova Scotia | n/a | n/a | n/a | n/a | $119 |
| Prince Edward Island | n/a | n/a | n/a | n/a | $82 |
| Newfoundland and Labrador | n/a | n/a | n/a | n/a | $179 |
Below are illustrative example rebate amounts for different business sizes by province, from 2023 to 2024:
| Number of Employees | Alberta | Saskatchewan | Manitoba | Ontario | New Brunswick | Nova Scotia | PEI | NFL |
| 10 | $1,810 | $2,330 | $1,680 | $1,460 | $870 | $1,190 | $820 | $1,790 |
| 25 | $4,525 | $5,825 | $4,200 | $3,650 | $2,175 | $2,975 | $2,050 | $4,475 |
| 50 | $9,050 | $11,650 | $8,400 | $7,300 | $4,350 | $5,950 | $4,100 | $8,950 |
| 100 | $18,100 | $23,300 | $16,800 | $14,600 | $8,700 | $11,900 | $8,200 | $17,900 |
| 499 | $90,100 | $116,700 | $84,000 | $73,740 | $43,413 | $59,381 | $40,918 | $89,321 |
The CRA schedules rebate payments as follows:
– For tax returns filed by July 15, 2024, rebates will be issued by December 16, 2024, for direct deposit and December 31, 2024, for cheque recipients.
– Returns filed after July 15 but by December 31, 2024, will depend on pending legislation that must receive Royal Assent before processing.
To ensure timely receipt of rebates, businesses should:
– Register for direct deposit to speed up payments.
– Check and update their business details in the CRA’s My Business Account.
The CRA has announced that rebates for future fuel charge years, including 2024-25, will follow a similar annual distribution approach, providing ongoing support for eligible Canadian-controlled private corporations.
The expanded carbon rebate program aims to alleviate the financial burden on businesses, ensuring they remain resilient and competitive amid evolving environmental policies. With rebates set to continue annually, businesses can expect steady support through this ongoing initiative.
