Canada Carbon Rebate for Small Businesses
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Canada Carbon Rebate for Small Businesses
You may be looking for: Canada Carbon Rebate for individuals
On October 1, 2024, the government announced that corporations that file their 2023 tax return after July 15, 2024, and on or before December 31, 2024, would also be eligible for a payment in respect of the 2019-2020 to 2023-2024 fuel charge years. Businesses filing after the initial July 15 deadline would receive their payment at a later date, subject to Royal Assent of legislation implementing this change.
Reporting the Canada Carbon Rebate for Small Businesses on your T2 corporation income tax return
Under the current legislation, the Canada Carbon Rebate for Small Businesses is considered assistance received from a government and is subject to taxation. As such, it must be included in taxable income when filing your T2 corporation income tax return for the year in which the rebate was received.
The Government of Canada has proposed that the rebate be tax-free. However, a legislative amendment is required to implement this proposal.
If a legislative amendment is enacted, the CRA will have the authority to process amended T2 corporation income tax returns. Further guidance will be provided at that time.
Visit Canada Carbon Rebate for Small Businesses to stay informed.
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).
You do not need to apply for this rebate. If you are eligible, you will automatically receive the payment.
Sections
- Who is eligible
- Qualifying for the rebate and the retroactive payment
- How much you may get
- Estimate your amount and learn how the rebate is calculated
- When and how you will get the rebate
- Timeline and process for receiving your payment, and possible delays
Page details
- Date modified:
- 2025-02-20