Skip to content

Budget 2024: 5 years worth of carbon rebates on the way to businesses

Rebates worth $2.5B included in budget as Liberals stand by their carbon plan
Deputy Prime Minister and Minister of Finance, Chrystia Freeland listens to a speaker during a news conference for a housing announcement in Vancouver, B.C., on March 27, 2024. THE CANADIAN PRESS/Ethan Cairns

Small- and medium-sized businesses are set to receive billions of dollars in carbon price rebates long promised by the Liberal government.

The federal budget says five years of rebates worth $2.5 billion will be sent out as the Liberals continue to stand by their carbon pricing system despite political pressure.

More than 600,000 businesses can expect to receive the money as a refundable tax credit later this year as long as their 2023 tax return is filed by mid-July.

Ottawa has battled with banks for years over how the consumer carbon rebate is labelled when it’s deposited into Canadians’ bank accounts.

The Liberal budget proposes to change the law so the government can require financial institutions to use specific labels for government payments.

The government is also announcing a tax credit to attract companies investing in Canada’s electric-vehicle supply chain, along with a national flood insurance program.

READ ALSO: NDP supports ‘price on pollution’, Singh avoids direct response to carbon tax

READ ALSO: ‘Generational fairness’ the theme as Liberals unveil $535B budget