Canada Carbon Rebate for Small Businesses

Here is an update about the?Canada Carbon Rebate for Small Businesses, it is a new initiative announced in?Budget 2024. This refundable tax credit aims to directly benefit eligible Canadian-controlled private corporations (CCPCs) by returning a portion of federal fuel charge proceeds.

Here are the key details:

Eligibility:

To qualify for the retroactive payment covering the?2019-2020 to 2023-2024 fuel charge years, your CCPC must meet the following criteria:

• Employed one or more persons in a designated province during the calendar year when the fuel charge year began.
• Had 499 or fewer employees across Canada in that same calendar year.
• Filed a tax return for its tax year ending in 2023 no later than?July 15, 2024.

No application is required; eligible CCPCs will automatically receive the rebate.

Calculation:

• The rebate amount for each applicable fuel charge year (2019-2020 to 2023-2024) will be calculated based on the number of employees your CCPC had in each designated province.
• Designated provinces include Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador. For Ontario eligible CCPC will qualify for all years from 2019 to date.
• The specific payment rates will be determined by the Minister of Finance. The payment will be based on the number of persons employed by the eligible CCPC multiplied by a payment rate specified by the Minister of Finance for the designated province for the corresponding fuel charge year.

Distribution:

• Our office will provide updates to our clients on the exact distribution date as they become available.
• Please note that estimated rebate amounts cannot be provided until the payment rates are finalized.

Impact:

• Over?$2.5 billion?will be directly returned to small- and medium-sized businesses through this initiative.

Stay tuned for further announcements and detailed guidelines. If you have any questions, feel free to reach out to our office.

Learn more about the eligibility criteria and other details : Canada Carbon Rebate for Small Businesses

Disclaimer

Please note that the above information is intended as a general source of information and should not be considered as specific source of tax, legal or financial advice. Tax rules and regulations are subject to change at any time, and we at MMS Accounting & Bookkeeping will help you navigate and fully benefit from any tax savings available to you. Should you need help or require additional information, you may contact us for advice based on your situation.

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