Incorporated farms in provinces that collect a federal carbon tax would have to get a little more back on their tax returns under the proposed 2015 Canada Carbon Rebate for Small Businesses. federal budget last week.
The federal government includes Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and Labrador.
Refundable tax credit rates and amounts have not yet been announced, but will be determined based on the number of employees in the organization for each tax year.
The Canadian Treasury has confirmed to Real Agriculture that agricultural operations that meet the eligibility criteria will be treated like any other Canadian-controlled private business and will automatically receive the new small business carbon rebate on their tax returns. .
Although it was not initially clear, the department said eligible farms would receive a new small business rebate on top of the existing fuel bill tax credit for farmers implemented below. 2021 federal budget.
Described by then-Agriculture Minister Marie-Claude Bibeau as a carbon tax rebate for grain drying and other on-farm fuel use, the farm fuel tax credit is based on farm costs and is $1.86 per thousand. applicable at the tax rate of Amounts equivalent to eligible expenses in Alberta, Saskatchewan, Manitoba, and Ontario from 2023 to 2024. (For example, a farm with $1 million in eligible expenses would receive a tax credit of $1,860.) The new small business carbon rebate is available only to corporations, but the on-farm fuel bill credit is also available to individuals and partnerships. Masu.
The Canadian Federation of Agriculture and the Canadian Federation of Independent Business (CFIB) welcomed the small business rebate in post-budget comments last week.
“It has taken a long time to deliver carbon tax rebates for small businesses, but I am pleased to see the government making progress towards this. Most importantly, the government is ensuring that most small businesses “Expanding eligibility requirements is a good thing,” said CFIB Chairman Dan Kelly.
Payment rates for the 2019 to 2023 tax years for the new small business carbon rebate will be announced by Finance Minister Chrystia Freeland “as soon as sufficient information is available from the 2023 tax year,” according to the Treasury Department of Canada. It is said that
The government has said it intends to apply the small business rebate annually from now on.
Bill C-234, a private member’s bill that would remove the federal carbon tax from propane and natural gas used on farms for eight years, was approved by the House of Commons about a year ago but significantly amended in the Senate. , applied on a three-year schedule for grain drying. A revised version of the bill is currently stalled in the House of Representatives, without unanimous support for a vote.
