*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.
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.
Fuel Charge Relief
Most climate action incentives are paid to Canadians after the tax filing season, but the fuel charge relief is one of the few cases when consumers can get their incentive (in this case, an exemption) upfront.
Full or partial fuel charge relief (or relief from carbon tax) can be received at the time of your fuel delivery if you provide your delivery person with an exemption certificate. Read on to learn how the fuel charge exemption works in Canada.
What is an exemption certificate and who qualifies for one?
A fuel charge exemption certificate allows the delivery of fuel in a province without having a fuel charge applied. Exemption certificates only apply if the appropriate form is filled in with the information determined by the Minister and if one or more of the criteria below apply to the applicant:
- a registered distributor, a registered specified air carrier, a registered specified marine carrier or a registered specified rail carrier, for that type of fuel.
- a registered emitter and that the fuel is for use at its covered facility.
- a registered user of fuel for that type of fuel and that the fuel is for use in a non-covered activity.
- Fuel charge exemption for farmers applies if the following conditions are met:
- the fuel is delivered to a farm.
- the fuel is for use exclusively in the operation of eligible farming machinery or of an auxiliary component of eligible farming machinery.
- all or substantially all of the fuel is for use in the course of eligible farming activities.
- a fisher and all of the following conditions are met:
- the fuel is for use exclusively in the operation of an eligible fishing vessel.
- all or substantially all of the fuel is for use in the course of eligible fishing activities.
In addition, the delivery of light fuel oil to remote power plant operators that generate electricity for remote communities are eligible for an exemption certificate. A remote community refers to a geographic area that is not serviced by either a natural gas distribution system or the jurisdiction of the North American Electric Reliability Corporation.
Partial relief (80%) is also available for natural gas or propane deliveries to a greenhouse operator that provides a fuel charge exemption certificate.
How to Fill Out a Carbon Tax Exemption Application
If you believe you’re eligible for a fuel charge/carbon tax exemption certificate, you can see the available forms on the official Canadian fuel charge relief page and learn more about them there.
After filling out and signing the appropriate carbon tax exemption certificate, you must provide the original certificate to the person who delivers fuel to you. Exemption certificates have no expiry dates. Make sure you make a copy of the certificate for your own records.
Once you’ve filled out, signed and provided an exemption certificate to your delivery person, you don’t need to fill out another one unless one of the following criteria apply:
- Your supplier is requesting that you complete and provide the new exemption certificate form. Canada Revenue Agency (CRA) has made improvements to the exemption certificate to include the fuel types that may be delivered to each exempt group and some suppliers may request that you use the most up to date version of the exemption certificate. The CRA doesn’t send correspondence confirming the addition or removal of fuel types on your account.
- You are registering additional covered facilities as part of the opt-in or aggregate policies under Part 2 of the Act and you are making an application as an emitter for those new facilities.
- You are registering covered facilities that operate in Alberta, where a statement under Part 2 is necessary and you are making an application as an emitter for those facilities.
Compare energy rates in Canada
If you don’t qualify for a fuel charge relief or you’re still looking for more ways to save on your energy costs, not to worry. One easy and free way you can do so is by comparing the natural gas and electricity rates in your area. After all, who wants to be paying more for energy than they have to?
EnergyRates.ca can help you compare electricity and natural gas rates in your area and assist you in finding the best available energy providers. EnergyRates.ca is a free and unbiased cost comparison tool available in Alberta, Manitoba, Ontario, British Columbia, Saskatchewan and Québec.
Something particularly great about EnergyRates.ca is that it can be used by both commercial and residential consumers. Small business, small commercial, large commercial and industrial electricity and natural gas consumers can get a free quote based on their energy needs.
Using EnergyRates.ca is easy – all you need to do is fill in your postal code in the form above and you’ll be able to see the best energy rates available to you in your area.
