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 an estimated 600,000 small and medium businesses.
The Canada Revenue Agency (CRA) is working towards issuing the retroactive payments to eligible Canadian-controlled private corporations (CCPCs), which total over $2.5 billion with respect to the 2019-2020 to 2023-2024 fuel charge years.
Get ready by filing your 2023 corporate income tax return by July 15, 2024.
To be eligible for the rebate for one or more of the fuel charge years (which run from April 1 to March 31), you 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; and
- file your corporate income tax return for the tax year ending in 2023 no later than July 15, 2024.
You 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, the CRA will calculate and automatically issue the rebate amounts to eligible CCPCs.
For more information on how the rebate payments would be calculated and the designated provinces, go to Canada Carbon Rebate for Small Businesses.