The Numbers Are Out – Canada Carbon Rebate for Small Businesses
Small and medium-sized businesses may be finding some extra funds in their bank accounts in December.
Businesses eligible for the refundable tax credit, the new Canada Carbon Rental for Small Business, who filed their 2023 corporate tax returns before July 15, 2024, will receive their payment by:
December 16, 2024, for direct deposit registrants; or
December 31, 2024, if receiving CRA payments by cheque
The 2024 payment covers rebates from 2019-2024 and was determined based on each applicable province in which the corporation had employees in the calendar years multiplied by the payment rate specified by the government (see table below). No separate application is necessary; the CRA will use information from corporate filings and automatically issue the rebate if a business qualifies.
The calculated amount could result in a significant payment. See chart below for examples of what corporations can expect:
If a corporation has not yet filed their corporate tax return for 2023, do not delay. There is a proposal to allow more businesses to receive payment if they file their outstanding return on or before December 31, 2024. This proposal must first receive Royal Assent.
General details on the rebate:
Backgrounder with amounts:
