Latest update: $2.5 billion in carbon tax revenue is coming back to small businesses!
On October 1, 2024, the federal government announced that it will return $2.5 billion in carbon tax rebates to small businesses by December 16, 2024 (if registered for direct deposit with the CRA) or by December 31, 2024 (if receiving payment by cheque). The CRA never issues payments via e-transfer. These dates apply to businesses that filed their 2023 year-end tax return by the July 15, 2024 deadline.
The government is also proposing to extend the filing deadline to qualify to December 31, 2024 (previously July 15, 2024) for those who have not yet filed their 2023 year-end corporate tax return. Legislation enacting this change still needs Royal Assent.
Rebates will be based on the number of T4s issued by an employer, including those issued to the business owner, their family, part-time, and seasonal workers, as well as for positions that turn over.
Sizable rebates will be paid out to Alberta, Saskatchewan, Manitoba, and Ontario. New Brunswick, Nova Scotia, PEI, and Newfoundland and Labrador will receive smaller payouts as they only joined the federal carbon backstop as of July 1, 2023.