Canada Carbon Rebate for Small Businesses
Starting in 2024, eligible Canadian-controlled private corporations (CCPCs) in designated provinces will receive the Canada Carbon Rebate automatically. This refundable tax credit returns part of the federal fuel charge proceeds to small businesses. Here’s what you need to know:
- No Application Needed: If your business qualifies, the rebate is issued automatically.
- Eligibility: Only CCPCs with 499 or fewer employees can receive the rebate, covering retroactive fuel charge years from 2019-2020 onward. **This likely applies to you if you have employees**
- Payment Timeline: Payments are expected by December 16, 2024, for direct deposits or December 31, 2024, for cheque recipients.
The rebate amount varies based on location and year. Here’s a breakdown per employee by province:
| Designated provinces and amounts per employee | |||||
| Jurisdiction | 2019 | 2020 | 2021 | 2022 | 2023 |
| Alberta* | $147 | $123 | $140 | $181 | |
| Saskatchewan | $110 | $271 | $244 | $298 | $233 |
| Manitoba | $48 | $99 | $77 | $89 | $168 |
| Ontario | $26 | $68 | $75 | $86 | $146 |
| New Brunswick | – | – | – | – | $87 |
| Nova Scotia | – | – | – | – | $119 |
| PEI | – | – | – | – | $82 |
| Newfoundland and Labrador | – | – | – | – | $179 |
| * As the federal fuel charge only came into effect as of January 1, 2020 in Alberta, and as of July 1, 2023, in New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador, small businesses in these provinces will receive payments for proceeds collected after those respective dates. | |||||
Example: An Ontario business with 10 employees could expect $1,460 for 2023 (10 x $146). If you’re curious about your specific rebate, reach out to us—we’re here to help.
Trust Reporting Update for 2024: Bare Trusts Exemption
For 2024, the CRA has announced that bare trusts will remain exempt from filing the T3 Income Tax and Information Return (T3 return) and Schedule 15 (Beneficial Ownership Information) unless a direct request is issued by the CRA. This exemption continues the same reporting relief provided for 2023.
Key Points:
- Who’s Exempt: Bare trusts do not need to file the T3 Return and Schedule 15 for 2024, unless CRA requests it.
- Other Trusts: All other affected trusts must comply with the updated reporting requirements, filing the T3 return, including Schedule 15, unless specific exemptions apply.
- Deadlines: The filing deadline is 90 days after the trust’s tax year-end. For trusts with a December 31, 2024, tax year-end, returns are due by March 31, 2025.
For any questions about your rebate amount, eligibility or your trust reporting, please feel free to get in touch with us!