OTTAWA — More than 600,000 small businesses in Canada will receive a total of $623 million in carbon price rebate payments by the end of the year. This will be the final payment following the conclusion of the consumer carbon price last spring.

These rebates are the second round of payments issued under the carbon pricing program. The initial plan to return revenues through energy efficiency retrofit programs did not meet expectations. Last December, nearly $2.5 billion was distributed to small and medium-sized businesses for the fuel charge collected during the first five years of the program.

This upcoming payment will cover funds collected from April 2024 to April 2025. The Canadian Federation of Independent Business has expressed support for this initiative. They noted that the rebates will be allocated based on the number of employees at each business and will vary by province.

However, the federation is advocating for legislation to ensure that these rebates are not subject to taxation. This move aims to provide additional financial relief to small businesses that have been impacted by the carbon pricing system.

As the deadline approaches, many small business owners are looking forward to receiving this financial support, which is intended to help offset the costs associated with the carbon pricing framework. The government’s decision to issue these rebates reflects an ongoing effort to assist businesses while addressing environmental concerns.