Canada Carbon Rebate for Small Businesses
Canadian-controlled private corporations (CCPCs) will be receiving a tax rebate. The federal government will be returning a portion of federal fuel charge proceeds to eligible CCPCs. Business owners do not need to apply for the rebate. If eligible, businesses will automatically receive the payment either by mail or direct deposit.
Who is Eligible?
If your business is a Canadian-controlled private corporation (CCPC), your business is eligible for this rebate if you were a CCPC at all times between the 2019-2020 to 2023-2024 fuel charge years. You must have also filed your 2023 corporate tax return no later than July 15, 2024. Your CCPC must have also employed one or more individuals in a designated province in the calendar year in which the fuel charge year begins and had 499 or fewer employees throughout Canada in that calendar year. To determine if you operate in one of the designated provinces, learn more here.
How Much Will You Receive?
The total rebate amount received will be equal to the number of employees your CCPC employed in the designated provinces between 2019 and 2023, multiplied by a payment rate for each of those provinces and years. If you would like to estimate the amount your CCPC will be receiving, you can do so here.
When and How Will You Receive the Rebate?
Rebates are planned to be issued to all eligible CCPCs by the end of the 2024 calendar year. To avoid a delay due to the Canada Post postal disruption we would recommend ensuring that you have opted to receive payments from CRA via direct deposit instead of via cheque.
For more information, please refer to the CRA announcement regarding the rebate here.
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