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Canada Carbon Rebate for Small Businesses - Canada
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Canada Carbon Rebate for Small Businesses

Refundable tax credit for eligible small Canadian-controlled corporations
Government of Canada
Canada Revenue Agency (CRA)
Last Update: March 4, 2026
Funding available
No Condition
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, 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.

/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Reduce environmental footprint
Eligible Funding
  • No Condition
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.

Eligibility

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)

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

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.

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, 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.

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)

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.

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 Government of Canada, Canada Revenue Agency (CRA)

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