Prime Highlights:

• Canada Carbon Rebate (CCR) would be extended to certified homes in eight provinces this year as federal carbon policy.

• Small- and medium-sized businesses also would receive retroactive $2.5 billion rebates tied to employee size and province.

Key Facts:

• Canada-wide residence in provinces under federal jurisdiction, 2024 filing of tax return on income, and age or household are also the requirements for CCR eligibility.

• Eligibility thresholds for rebates also vary by family size, province, and have a 20% rural top-up for Canadians living in the country and small towns.

Key Background:

The Canada Carbon Rebate (CCR), previously the Climate Action Incentive, is a federal carbon pricing rebate of funds to Canadians. It is directed to residents in provinces with the federal system of carbon pollution pricing: Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan. They are distributed quarterly and have been put in place to help pay for carbon pricing to households and help pay for green action.

In order for the individual to be eligible for April 2025 payment, he or she must have filed his or her 2024 return on or before April 2, 2025. Eligible individuals are individuals aged 19 and above or young adults with spouses or dependent children. The credit is not income-dependent and therefore benefits the majority of the population. Payments are based on family size and province of residence. A four-member Alberta family, for example, will get a maximum of $456, while the same family in Ontario gets $302. The second item received by the inhabitants away from large cities is an extra 20% rural bonus.

Apart from families, the Canadian government is also supporting small and medium-sized businesses (SMEs). A rebate of a maximum of $2.5 billion of the carbon pricing revenues will be upfront remitted to eligible businesses. The businesses must be Canadian-controlled private corporations with 499 employees or fewer and who have filed the 2023 corporation tax return on or before July 15, 2024. The rebates will vary with employees and provinces of work.

This second tranche payment is a milestone for the federal government on the side of action on its climate change commitments and protection from the hit for individuals and small businesses. The future of the rebate plan and carbon tax in the long term is politicized nationwide.