Government announces 2024-25 rates for final payments under the Canada Carbon Rebate for Small Businesses
In provinces where the federal fuel charge applied, a portion of fuel charge proceeds from the price on pollution is returned to eligible small and medium-sized businesses via the Canada Carbon Rebate for Small Businesses (CCRSB), an automatic, refundable tax credit provided directly to eligible businesses. Corporations do not have to apply for the tax credit; the payment amounts are automatically determined by the Canada Revenue Agency (CRA).
The federal consumer fuel charge was removed effective April 1, 2025, via regulations, and the government has since introduced legislation that would formally remove the federal fuel charge from Canadian law. CCRSB payments in respect of the 2024-25 fuel charge year will therefore be the final payment.
The overall amount to be returned to eligible businesses for the final payment was already specified in 2024 at $623.1 million. As indicated by the Minister of Finance and National Revenue, the amounts to be returned to each province from this envelope are as follows:
| Province | Alberta | Saskatchewan | Manitoba | Ontario | New Brunswick | Nova Scotia | Prince Edward Island | Newfoundland and Labrador |
|---|---|---|---|---|---|---|---|---|
| Amounts ($ millions) | 159.5 | 42.0 | 34.3 | 338.6 | 13.4 | 18.3 | 2.9 | 14.1 |
The Minister of Finance and National Revenue is using his authority under the Income Tax Act to specify payment rates, on a per-employee basis, for the 2024-25 fuel charge year, and the designated provinces in which these payment rates will apply:
| Province | Alberta | Saskatchewan | Manitoba | Ontario | New Brunswick | Nova Scotia | Prince Edward Island | Newfoundland and Labrador |
|---|---|---|---|---|---|---|---|---|
| Per- Employee Rate ($) | 120 | 153 | 110 | 98 | 69 | 78 | 56 | 127 |
Payment amounts vary between jurisdictions due to differences in the amount of fuel charge proceeds collected in that province and the number of employees in each designated province. The amount an eligible corporation may receive will then depend on the number of employees it had in each designated province.
To be eligible, businesses will have had to have filed their tax returns for 2024 by July 15, 2025, and reported 499 or fewer employees in the calendar year, with at least one employee having worked in a province where the federal fuel charge applied. Approximately 590,000 businesses are expected to receive a payment in respect of the 2024-25 fuel charge year.
The CRA will begin issuing the final CCRSB payments before the end of 2025.