Closed
Canada Carbon Rebate for Small Businesses
Refundable tax credit for eligible Canadian-controlled corporations
Last Update: June 19, 2026
Funding available
Varies by project
Timeline
- Receipt of requests is now closed
Location
Canada
Overview
The Canada Carbon Rebate for Small Businesses is a refundable tax credit that returns a portion of federal fuel charge proceeds directly to eligible Canadian-controlled private corporations. It is based on employees in designated provinces and applicable fuel charge years, with a final payment for 2024-2025.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Reduce environmental footprint
Eligible Funding
- Varies by project
Timeline
- Receipt of requests is now closed
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- 499 employees maximum
Audience
- Indigenous Peoples
- Canadians
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Direct remuneration paid to privately held Canadian-controlled companies for employing personnel in designated provinces, as part of their ongoing activities subject to the federal fuel charge.
Official resources
Eligibility
Who is eligible?
- Canadian-controlled private corporations (CCPCs)
- Indigenous CCPCs
- Subsidiaries with a separate corporate RC account
Who is not eligible
- Cooperatives
- Credit unions
Eligible geographic areas
- Alberta
- Saskatchewan
- Manitoba
- Ontario
- New Brunswick
- Nova Scotia
- Prince Edward Island
- Newfoundland and Labrador
How to apply
- Step 1: File your T2 return
- File the corporation income tax return by the applicable deadline.
- Step 2: Wait for automatic assessment
- The CRA reviews eligibility and calculates the rebate automatically.
- Step 3: Receive notice and payment
- Eligible businesses receive a notice and payment without applying.
- If registered for direct deposit, the payment appears in the bank account.
Processing and Agreement
- No application is required.
- The CRA calculates and issues payments automatically for eligible CCPCs.
- Eligible businesses receive a notice when a payment is issued.
- If filed after the relevant deadline, payment is issued later.
Additional information
- The Canada Carbon Rebate for Small Businesses is automatically calculated and issued; no application is required if you qualify.
- Under current legislation, the rebate is taxable and must be declared as government assistance on the T2 corporation income tax return for the year it is received.
- If the law changes to make the rebate tax-free, the CRA will provide instructions for amending past returns.
- Payments may be delayed for returns filed after July 15, 2024, or if there are issues such as outstanding tax debts or required business information updates.
Frequently Asked Questions about the Canada Carbon Rebate for Small Businesses Program
What is the Canada Carbon Rebate for Small Businesses?
The Canada Carbon Rebate for Small Businesses is a refundable tax credit that returns a portion of federal fuel charge proceeds directly to eligible Canadian-controlled private corporations. It is based on employees in designated provinces and applicable fuel charge years, with a final payment for 2024-2025.
Who is eligible for the Canada Carbon Rebate for Small Businesses program?
To be eligible for the Canada Carbon Rebate for Small Businesses program, you must:
Canadian-controlled private corporation
499 or fewer employees
Filed T2 by deadline
What expenses are eligible under Canada Carbon Rebate for Small Businesses?
Direct remuneration paid to privately held Canadian-controlled companies for employing personnel in designated provinces, as part of their ongoing activities subject to the federal fuel charge.
Who can I contact for more information about the Canada Carbon Rebate for Small Businesses?
You can contact Canada Revenue Agency (CRA).
Where is the Canada Carbon Rebate for Small Businesses available?
The Canada Carbon Rebate for Small Businesses program is available across Canada.
Is the Canada Carbon Rebate for Small Businesses a grant, loan, or tax credit?
Canada Carbon Rebate for Small Businesses is a Tax Credits
Who are the financial supporters of the Canada Carbon Rebate for Small Businesses?
Canada Carbon Rebate for Small Businesses is funded by Canada Revenue Agency (CRA), Government of Canada