What Ontario SMEs can expect from upcoming federal carbon tax payments
Ottawa has upheld its long-delayed carbon tax commitment to refund a portion of federal fuel charge proceeds to small to medium-sized businesses in provinces where the charge applies. The recently announced Canada Carbon Rebate for Small Businesses promises to return fuel charge proceeds from 2019-20 through 2023-24 to approximately 600,000 Canadian-controlled private corporations with between one and 499 employees by the end of 2024.
The refundable tax credit will be based on the province in which a business operates and the number of people it employs. As the federal government notes, “… eligibility for receiving a payment in respect of the 2022-23 fuel charge year will be based on the number of persons employed by the eligible corporation for the 2022 calendar year. The tax credit amount will be equal to the number of persons employed by the eligible corporation in the province in that calendar year multiplied by a payment rate specified by the Minister of Finance for the province for the corresponding fuel charge year.”
A business operating in Ontario between 2019 and 2023, for example, would be eligible to receive the following payment amounts based on its employee headcount:
| 10 employees | 25 employees | 50 employees | 100 employees | 499 employees | |
| Ontario | $4,010 | $10,025 | $20,050 | $40,100 | $200,099 |
Businesses that filed their 2023 tax return by July 15th, 2024, can expect their rebate by December 16th, 2024, if they are registered for direct deposit from the Canada Revenue Agency.
To learn more about your company’s potential carbon rebate—or for assistance with your general tax and accounting needs—contact a member of our team today.
Armando Iannuzzi, Co-Managing Partner
