Canada Carbon Rebate for Small Businesses
grant_single|update April 27, 2025
Canada
Refundable tax credit for eligible small Canadian-controlled corporations
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|grantStatusClosed
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Canada Revenue Agency (CRA)
- Government of Canada
grant_single|status
grant_card_status|closed
grant_single_labels|preview
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.
grant_single_labels|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.
grant_single_labels|projects
- 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.
grant_single|admissibleProjectsExample
$ 23,500
Upgrade of industrial machinery with automated energy monitoring devices
$ 16,100
Installation of high-efficiency heat pumps in a community center
$ 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
$ 42,000
Upgrade to LED lighting throughout a commercial office building
grant_single_labels|admissibility
- 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.
grant_eligibility_criteria|who_can_apply
- 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
grant_eligibility_criteria|who_cannot_apply
- 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.
grant_eligibility_criteria|zone
- 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)
grant_single_labels|apply
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grant_single_labels|otherInfo
- 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
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