Missed the Canada Carbon Rebate – File a Tax Return

Evelyn Jacks

October 15 was the date that eligible Canadians receive the Canada Carbon Rebate (CCR).  Did you miss it?  There may be several reasons for this:  you didn’t meet age or residency requirements, you don’t live in an eligible province or you missed filing a tax return.  Here’s how to make sure you get what you are entitled to set up for the next payment in January:

What is the CCR?    The Canada Carbon Rebate was first known as the Climate Action Incentive Payment (CAIP) when it was first introduced in 2018.  It’s a tax-free refund the federal government supplies to tax filers to help eligible individuals and families offset the cost of the federal pollution pricing – in other words, the carbon tax. There’s a basic amount available, and a supplement for residents of rural communities.

How does it work?  The payment dates are quarterly, based on the previous tax year (Base year).  So, for example, based on the 2023 tax return, payment dates will be on the 15^th of April, July, October and January. Where the 15^th falls on a weekend or statutory holiday, the payment will be made on the last business day prior to the 15^th. Taxpayers who have elected to receive their tax refund by direct deposit, will automatically receive the CCR by direct deposit.

Who is eligible?  First and foremost, you must be a Canadian resident.  Next, you must also be at least 19 years old in the month before the CRA makes a payment or if under 19, must have (or had) a spouse or common-law partner or you are the parent of and living with your child.  Finally, there is no official application form – you simply file a tax return to get the CCR.  A couple of points to note:

• Parents. if you have children under 19 and are eligible for the Canada Child benefit, the CCR will be automatically applied to you as discussed above.  If your children are over 18, however, they will need to be registered with the CRA to get this rebate.  To do so they must file a tax return.
• Couples. Only one CCR payment can be received per household.  If each taxpayer had been receiving individual payments after marital status had changed, one of the taxpayers will be required to repay the amounts received.
• Newcomers to Canada.  Apply for the Canada Child Benefit or if there are no children, use form RC151 GST/HST Credit and Canada Carbon Rebate Application for Individuals Who Become Residents of Canada

Who’s Not Eligible?  If any of the following applies, CCR is generally not available:

• You are not a resident of Canada for income tax purposes.
• You do not have to pay tax in Canada because you are an officer or servant of another country (such as a diplomat) or a family member or employee of such a person.
• You are confined to a prison or similar institution for a period of at least 90 consecutive days.
• The recipient is deceased.
• Residents of British Columbia, Northwest Territories, Nunavut, Quebec and the Yukon do not have the Canada Carbon Rebate.

What can you receive?  Below are the tables for the CCR payment amounts for 2024-2025. As of June 22, 2024, the Canada Carbon Rebate (CCR) rural supplement increased from 10% to 20% for those that life outside on a Census Metropolitan Area, based on 2016 census data.  Please note that PEI includes the rural supplement since all residents are eligible.  See the table below for amounts receivable.

Annual Canada Carbon Rebate Amounts 2024-2025

Compiled by Knowledge Bureau, Inc.  PE amounts include the 20% rural supplement as there are no CMA in PEI

Different Rules for SMEs.  Small business corporations have just been notified this month (October 9) that the Canada Carbon Rebate for Small Business will become available this year.  There is  no need to apply – the government will automatically send the payment to those who are eligible.  That includes corporations that filed their 2023 tax return no later than July 15, 2024. Most businesses should receive their payment as follows:

• December 16, 2024, if registered for direct deposit
• December 31, 2024, if receiving a payment by cheque

Make a Difference.  Always encourage clients who missed filing prior tax returns to catch up. Important benefits like the Canada Carbon Rebate are only available when tax returns are filed!