As part of Canada’s 2024 Federal Budget, the Canada Carbon Rebate has been expanded for small businesses. The program is not yet in full swing, as the government is waiting on key information from the Minister of Finance.
Coming Soon
At the time of posting this blog, Canada Revenue Agency (CRA) has stated:
- They can only calculate your estimated rebate after the payment rates have been set by the Minister of Finance.
- As a result, they also cannot confirm a specific distribution date at this time.
Curious if there have been any updates? Check out CRA’s webpage for Canada Carbon Rebate for Small Businesses – Canada.ca.
What We Know Now
- Small businesses do not have to apply for this Carbon Rebate.
- CRA will determine which businesses are eligible, calculate the rebate amounts, and automatically issue the rebate to you.
- The rebate will be applicable to fuel charges between 2019-2020 and 2023-2024, inclusively.
- CRA will calculate the rebate for each province in which the eligible business had employees, per fuel charge year – which runs from April 1 to March 31.
Eligibility
The following four criteria must be met for a small business to be eligible for the Canada Carbon Rebate:
- Be a Canadian-controlled private corporation,
- Have employed one or more individuals, in a designated province, in the calendar year in which the fuel charge year begins,
- Have had less than 500 employees throughout Canada in that calendar year, and
- File a tax return for the tax year ending in 2023 no later than July 15, 2024.
Reference Materials
Government of Canada’s news release: Budget 2024: Growing Canada’s small businesses – Canada.ca
Canada’s full 2024 Federal Budget: Budget 2024 (canada.ca).
CRA Fuel Charge Information: Fuel charge – Canada.ca