Carbon tax rebate: What small businesses need to know [Video]

Hundreds of thousands of Canadian small- and medium-sized businesses will receive carbon rebates by December.

The federal government said Tuesday that it will send more than $2.5 billion to about 600,000 businesses.

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The Canada Carbon Rebate for Small Businesses is a refundable tax credit that returns a portion of the carbon price revenue to eligible companies in jurisdictions where the federal fuel charge applies for the 2019-20 to 2023-24 fuel charge years, according to the Canada Revenue Agency (CRA) on its website. A fuel charge year runs from April 1 to March 31.

The finance minister will indicate the payment rates for each designated province for a calendar year.

Who is eligible?

The designated provinces considered eligible for the payments in certain years are shown in this chart on the Canada Revenue Agency’s website.

A business in a non-designated province …