*Update: On March 15, 2025, the Canadian Federal Government announced changes to the consumer carbon tax. Effective April 1, 2025, the carbon tax will be set to $0. This means that after March 31, 2025, the carbon tax will no longer be applied to natural gas usage.
Customers will still see carbon tax charges for usage incurred up to and including March 31, 2025. For usage periods after March 31, 2025, the line-item Carbon Tax will read $0.00. Eligible Canadians will receive a final Canada Carbon Rebate payment starting April 22, 2025.
To learn more about the change to Canada’s carbon tax, click here for our detailed guide.
The Federal government announced that by the end of 2024, a portion of fuel charge proceeds from 2019-20 through 2023-24 will be returned to approximately 600,000 Canadian small- and medium-sized businesses. This covers all private corporations with 1 to 499 employees.
The return is direct and automated, meaning it doesn’t require any application from businesses.
Corporations that filed their tax return for 2023 by July 15, 2024, will receive their Canada Carbon Rebate for Small Businesses by the end of 2024.
The Canada Carbon Rebate for Small Businesses will be paid to eligible corporations through payments from the CRA, separately from CRA tax refunds.
Proceeds for future fuel charge years, including 2024-25, will be returned similarly each year.
Payment deadlines
- December 16, 2024, if registered for direct deposit from the Canada Revenue Agency (CRA); or,
- December 31, 2024, if receiving payment by cheque.
Payment amounts per employee
According to the government, the tax credit amount of an eligible corporation for an applicable fuel charge year will be determined for each applicable province in which the eligible corporation had employees in the calendar year in which the fuel charge year begins.
For example, eligibility for receiving a payment for the 2022-23 fuel charge year will be based on the number of persons employed by the eligible corporation for the 2022 calendar year. The tax credit amount will be equal to the number of employees by the eligible corporation in the province in that calendar year multiplied by a payment rate specified by the Minister of Finance for the province for the corresponding fuel charge year.
| 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | |
|---|---|---|---|---|---|
| Alberta | n/a | $147 | $123 | $140 | $181 |
| Saskatchewan | $110 | $271 | $244 | $298 | $233 |
| Manitoba | $48 | $99 | $77 | $89 | $168 |
| Ontario | $26 | $68 | $75 | $86 | $146 |
| New Brunswick | n/a | n/a | n/a | n/a | $87 |
| Nova Scotia | n/a | n/a | n/a | n/a | $119 |
| Prince Edward Island | n/a | n/a | n/a | n/a | $82 |
| Newfoundland and Labrador | n/a | n/a | n/a | n/a | $179 |
Example Payment Amounts for Businesses, by Number of Employees from 2019 to 2023
| 10 employees | 25 employees | 50 employees | 100 employees | 499 employees | |
|---|---|---|---|---|---|
| Alberta | $5,910 | $14,775 | $29,550 | $59,100 | $294,909 |
| Saskatchewan | $11,560 | $28,900 | $57,800 | $115,600 | $576,844 |
| Manitoba | $4,810 | $12,025 | $24,050 | $48,100 | $240,019 |
| Ontario | $4,010 | $10,025 | $20,050 | $40,100 | $200,099 |
| New Brunswick | $870 | $2,175 | $4,350 | $8,700 | $43,413 |
| Nova Scotia | $1,190 | $2,975 | $5,950 | $11,900 | $59,381 |
| Prince Edward Island | $820 | $2,050 | $4,100 | $8,200 | $40,918 |
| Newfoundland and Labrador | $1,790 | $4,475 | $8,950 | $17,900 | $89,321 |
Saving on business energy costs
If you’re looking to save on your business’s energy costs, EnergyRates.ca has a team of electricity and natural gas experts ready to help you review your options and guide you through the Canadian energy market. Fill out the form above or contact us to get a free energy quote for your small, medium, and large commercial or industrial operations.
Another way our energy consultants can help you is by finding suitable sustainability and renewable energy solutions, including VPPA guidance, carbon accounting, RECs, carbon offsets, and more.
