The Canada Carbon Rebate for Small Businesses is a new refundable tax credit for eligible Canadian-Controlled Private Corporations (CCPC). It was announced in Federal Budget 2024 to return a portion of the federal fuel charge proceeds to small businesses. For CCPCs with employees in Ontario, Manitoba and Saskatchewan, the credit includes payment for up to 5 years retroactive to 2019-2020. CCPCs with employees in Alberta can receive up to 4 years retroactive to 2020-2021. For CCPCs with employees in New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador, the credit is for 2023-2024. There are some conditions that must be met:
- the CCPC must have less than 500 employees in a calendar year.
- the CCPC must have at least one employee in a calendar year.
- the CCPC must have filed or file its tax return for its fiscal year ending in 2023 by July 15, 2024.
The credit for each year is based on the number of employees the CCPC has in a designated province in that calendar year. The rates for each designated province are yet to be determined. Once the rates are available, the credits will be automatically calculated by the Canada Revenue Agency. CCPCs do not have to apply for the credit.
The above information is of a general nature only and should not be relied upon for specific situations. Call Marlies Y Hendricks, CPA at 416-766-3941 or submit email enquiry form below to set up a consultation.
