The Canada Revenue Agency (CRA) would like to highlight new information about the Canada Carbon Rebate for Small Businesses, a refundable tax credit designed to support small and medium-sized enterprises across Canada. This initiative aims to return a portion of the federal fuel charge proceeds directly to eligible Canadian-controlled private corporations (CCPCs).
Note that you do not need to apply for this rebate. If you are eligible, you will automatically receive the payment.
Payment rates and estimator
We have published the payment rates for the Canada Carbon Rebate for Small Businesses on our website. These rates will help you understand the financial benefits you can expect from this program.
Additionally, we have introduced a new online tool that allows you to estimate your rebate amount based on your specific circumstances. This estimator is designed to provide greater transparency and ease of planning for CCPCs.
Distribution of payments
We plan to issue the rebate to eligible CCPCs that filed their 2023 tax return no later than July 15, 2024, by the end of the calendar year. Most businesses should receive their payment by:
- December 16, 2024, if registered for direct deposit; or,
- December 31, 2024, if receiving a payment by cheque.
Getting ready for your rebate
We encourage all eligible businesses to prepare in advance to ensure a smooth and timely receipt of their rebates. To facilitate the efficient distribution of payments, we advise businesses to take the following steps:
- Sign up for direct deposit: Ensure your business is enrolled in direct deposit to receive payments quickly, securely, and without disruption.
- Update your business information: Verify that your business address and contact information are current and accurate in our records.
You can do this through the CRA’s My Business Account portal or through most financial institutions.
For more information on the Canada Carbon Rebate for Small Businesses, including eligibility criteria and how payment will be calculated, please visit Canada Carbon Rebate for Small Businesses.
The CRA remains committed to supporting Canadian businesses in their efforts to reduce carbon emissions and contribute to a sustainable future. We appreciate your cooperation with this important initiative.