Canada Carbon Rebate for Small Businesses

Q: How much funding can be received?

There is no informations about how much funding can be received.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Canada Carbon Rebate for Small Businesses a grant, loan, or tax credit?

Canada Carbon Rebate for Small Businesses is a Tax Credits

Q: Who are the financial supporters of the Canada Carbon Rebate for Small Businesses?

Canada Carbon Rebate for Small Businesses is funded by Government of Canada, Canada Revenue Agency (CRA)

Q: 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: • Must be a Canadian-controlled private corporation (CCPC) • Must have employed 1–499 employees in designated provinces during the applicable year • Must have filed the 2023 corporate tax return by July 15, 2024 (for retroactive payment eligibility)

Q: Who can I contact for more information about the Canada Carbon Rebate for Small Businesses?

You can contact Government of Canada.

Q: Where is the Canada Carbon Rebate for Small Businesses available?

The Canada Carbon Rebate for Small Businesses program is available across Canada.

Q: Are Indigenous Peoples eligible for the Canada Carbon Rebate for Small Businesses program?

Yes, Indigenous Peoples are eligible to apply for the Canada Carbon Rebate for Small Businesses program.

Last Update: July 22, 2025

Canada

Refundable tax credit for eligible small Canadian-controlled corporations

At a glance

Eligible Funding

No Condition

Timeline

Receipt of requests is now closed

Financing Type

Tax Credits

Eligible Industries

All industries

Funds Providers

Unspecified

Program status

Closed

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, based on the number of employees in designated provinces and applicable years (2019-2023). The maximum funding per employee varies by province and year, with amounts ranging from $26 to $271 per year, supporting small businesses impacted by the federal fuel charge.

Financing terms and conditions

The rebate amount is calculated by multiplying the number of employees in designated provinces by a fixed payment rate, which varies by province and year (e.g., from $26 to $271 per employee, depending on the province and year between 2019 and 2023).
The total rebate is paid as a single lump sum covering all eligible years.

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.

Examples of admissible projects:

$ 42,000

Upgrade to LED lighting throughout a commercial office building

$ 16,100

Installation of high-efficiency heat pumps in a community center

$ 23,500

Upgrade of industrial machinery with automated energy monitoring devices

$ 57,400

Acquisition of energy-efficient fleet vehicles for home delivery

$ 10,100

Development of a composting system for small urban farms

$ 39,900

Purchase and installation of a rooftop solar panel array

Eligibility

The applicant must be a Canadian-controlled private corporation (CCPC), including eligible Indigenous CCPCs.
The corporation must have employed one or more persons in a designated province during the applicable year.
The total number of employees across Canada must be 499 or fewer during the applicable calendar year.
The corporation must have been a CCPC at all times during the applicable taxation year.
A 2023 corporate income tax return (T2) must be filed by the prescribed deadlines to qualify for retroactive payments.

Who is eligible?

Canadian-controlled private corporations (CCPCs), including Indigenous CCPCs
Subsidiaries of larger corporate groups, provided the subsidiary itself has 499 or fewer employees and a separate corporate tax account

Who is not eligible

Cooperatives and credit unions.
Companies that are not Canadian-controlled private corporations (CCPCs).
Businesses with over 499 employees in Canada during the applicable calendar year.

Eligible geographic areas

Alberta (for the years 2020 to 2023)
Saskatchewan (for the years 2019 to 2023)
Manitoba (for the years 2019 to 2023)
Ontario (for the years 2019 to 2023)
New Brunswick (for the year 2023)
Nova Scotia (for the year 2023)
Prince Edward Island (for the year 2023)
Newfoundland and Labrador (for the year 2023)

How to apply

Check eligibility requirements

Verify that your corporation is a Canadian-controlled private corporation (CCPC), including Indigenous CCPCs
Ensure your business employed at least one person in a designated province during the applicable calendar year
Confirm you had 499 or fewer employees across Canada during the applicable year
Check that cooperative and credit union structures are not eligible

File T2 corporate return

File your 2023 corporate income tax return (T2)
Submit no later than July 15, 2024, to receive timely payment
If filing after July 15, 2024, ensure submission is completed by December 31, 2024, for retroactive rebate eligibility (conditionally, subject to legislative approval)

Automatic assessment and calculation

No application is required; eligible businesses will be automatically assessed
The amount received is based on designated provinces, number of employees, and fixed federal fuel charge rates per year

Receive payment and resolve issues

Receive the payment automatically by direct deposit or cheque once eligibility and calculation are confirmed
If you do not receive the payment or the expected amount, verify eligibility, ensure T2 is filed, and check for outstanding debts
Contact the CRA for unresolved issues

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.

Apply to this program

Frequently Asked Questions about the Canada Carbon Rebate for Small Businesses Program

Here are answers to the most common questions about the Canada Carbon Rebate for Small Businesses. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.