Ottawa to return $623 million to small businesses in rebate payments

OTTAWA — More than 600,000 small businesses will share $623 million in carbon price rebate payments before the end of the year, the final payment they will receive following the end of the consumer carbon price last spring.

The payments are the second rebates issued to businesses under the carbon pricing program, after an initial plan to return the revenues through energy efficiency retrofit programs fell flat.

Payments close to $2.5 billion were issued last December to 600,000 small- and medium-sized businesses for the fuel charge for the first five years of the program.

This December, will be the final payment, for money collected under the program between April 2024 and April 2025.

The Canadian Federation of Independent Business welcomed the latest move, saying the payments will be divided by province and be based on the number of employees each company has.

But it is pushing Ottawa to pass legislation to make sure the rebates are not taxed.

This report by The Canadian Press was first published Nov. 14, 2025.

Catherine Morrison, The Canadian Press