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
Update on the taxability of the Canada Carbon Rebate for Small Businesses
Businesses can choose not to include the rebate in taxable income when filing their T2 Corporation Income Tax Return for the year in which it was received. However, they could be reassessed, with interest, in the event that the legislation does not receive Royal Assent. Read more: Tax treatment of the rebate.
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.
Removal of fuel charge
On March 15, 2025, the Government of Canada made regulations that cease the application of the federal fuel charge, thereby eliminating the Canada Carbon Rebate for Small Businesses. A portion of fuel charge proceeds from 2019-2020 through 2023-2024 has been returned to the majority of eligible Canadian-controlled private corporations. Proceeds for the 2024-2025 fuel charge year will be returned in a similar manner.
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
- Tax treatment of the rebate
- Find out whether the rebate is taxable and what to expect if you've already included it in your income
Page details
- Date modified:
- 2025-06-30