Learn about the federal price on pollution and Yukon's carbon rebate

  • Learn about the federal price on pollution
  • Who is eligible for a rebate in Yukon?
  • Rebates for Yukon individuals
  • Rebates for Yukon businesses
  • Rebates for Yukon placer- and quartz-mining operations
  • Rebates for First Nations and municipal governments

A price on pollution is a federal initiative. Yukon's carbon rebate program ensures that all revenues are returned to Yukoners. Visit Climate change in Yukon to learn how you can reduce your emissions.

  1. Learn about the federal price on pollution

    The federal government’s carbon pollution pricing levy will apply in Yukon as of:

    • July 1, 2019.

    It will be charged at $20 per tonne of carbon dioxide equivalent (C02e) emissions.

    $20 per tonne on July 1, 2019:

    • gasoline 4.42 cents per litre;
    • light fuel oil (diesel or heating) 5.37 cents per litre; and
    • propane 3.10 cents per litre.

    The federal levy will increase to:

    • $30 per tonne on April 1, 2020;
    • $40 per tonne on April 1, 2021; and
    • $50 per tonne on April 1, 2022.

    Visit Finance Canada’s website for more information on Yukon’s fuel charge rates for 2019–2022. You will find this information under 'Rates for Territories.'

    Exemptions

    Federally exempt industries include:

    • commercial fishing; and
    • agriculture.

    Negotiations with Canada since 2016 also resulted in targeted relief for:

    • aviation fuel in the territories;
    • diesel for electricity generation in remote communities; and
    • partial relief for greenhouse operators.

    Register for a fuel-charge program or exemption certificate

    Carbon pollution pricing is a federal initiative.

    Visit Carbon pollution pricing – what you need to know for information on:

    • registering for the federal fuel-charge program; and
    • exemption certificates.
  2. Who is eligible for a rebate in Yukon?

    The following groups are eligible for the Yukon Government Carbon Price Rebate:

    • Yukon individuals;
    • Yukon businesses;
    • placer- and quartz-mining operations;
    • First Nations governments; and
    • municipal governments.

    Why are these groups eligible?

    Yukon’s rebate program responds to feedback received from Yukoners between 2017 and 2019. It also meets Yukon’s commitments under the Pan-Canadian Framework on Clean Growth and Climate Change (PCF).

    Read the Yukon Government Carbon Price Rebate Act.

  3. Rebates for Yukon individuals

    The Canada Revenue Agency (CRA) will administer the rebate for Yukon individuals. To reduce administrative costs, 1 payment will made per family.

    How much will I get?

    Individuals

    If you are 19 years or older, you will receive 2 interim payments:

    • $43 in October 2019; and
    • $43 in April 2020.

    From July 2020, you will receive quarterly payments.

    Individuals with dependent children

    Your payments will include a rebate for each dependent child.

    Married and common-law partners

    The 1st person to have their tax return processed will receive both rebates.

    Remote supplement

    If you live outside of Whitehorse, you will receive a remote supplement from July 2020.

    The supplement will increase your rebate payments by 10%.

    Rebates increase with the federal price on pollution

    In 2023–2024 your quarterly rebates are estimated to be $71, or $284 annually. This is $97 more than the average person will pay in carbon levies.

    Find rebate estimates for future years:

    Apply for a rebate

    You do not need to apply for the rebate.

    If you file a Yukon income tax return as a resident of Yukon you will automatically be applying for a rebate. The CRA will use information from your return to determine your eligibility.

    Yukoners will receive further information from the CRA in 2019.

  4. Rebates for Yukon businesses

    The Canada Revenue Agency (CRA) will administer the general business rebate.

    General business rebate

    The general business rebate will be a refundable credit.

    Corporation

    A corporation can claim the rebate on its T2 corporation returns.

    Self-employed

    Self-employed people can claim the rebate on their T1 income tax returns.

    How is the credit determined?

    The credit will be based on a weighting of assets which businesses already identify when filling out their tax returns.

    Weighting will be applied to assets that:

    • either consume fossil fuels; or
    • displace the consumption of fossil fuels.

    As a result, businesses will receive larger rebates by investing in the territory.

    The credit will reduce a business’ tax liability.

    Eligibility

    Your company is eligible for the general business rebate if it:

    • is a Yukon business;
    • files a tax return in Yukon; and
    • has not applied for the placer- and quartz-mining rebate.

    Rebates qualify as income

    The credit is considered government assistance. You need to report the credit amount as income on your tax return.

    Capital cost allowance (CCA) classes

    The credit will be based on a weighting of prescribed CCA classes.

    Eligible classes will be assigned an inclusion rate to calculate the credit. The classes are grouped into 3 categories:

    • buildings;
    • equipment that burns fossil fuels; and
    • 'green' assets designed to replace carbon-based fuel consumption.

    Find credit estimates for eligible CCA classes:

    Super Green Credit

    A Super Green Credit will support your company as we transition to a cleaner economy. It will also encourage future investments in green technology and equipment.

    Eligible assets are listed under classes 43.1 and 43.2 of the capital cost allowance (CCA) in the Canmet Energy Technical Guide.

  5. Rebates for Yukon placer- and quartz-mining operations

    The Government of Yukon will administer rebates to producing placer- and quartz-mining operations.

    You can apply for a rebate if you are a producing:

    Non-producing operations

    Non-producing placer- or quartz-mining operations are eligible to apply for the general business rebate. Companies involved in exploration projects are also eligible for the general business rebate.

    Placer-mining operations

    The rebate is for 100% of carbon levies paid for production on eligible placer-mining claims.

    Eligibility

    Producing placer-mining operations will be eligible for the rebate. Proof of production is required for the rebate:

    • Class 4 Placer Mining Land Use Approval in the applicant's name.

    If the applicant’s name is not on the approval, then additional documentation will be required.

    Quartz-mining operations

    The rebate is for:

    • 100% of the carbon levy on the initial 6 kilotonnes; and
    • 50% of the carbon levy on all emissions between 6–10 kilotonnes.

    Eligibility

    A license issued under section 135 of the Quartz Mining Act will be sufficient proof for producing quartz-mining operation.

    How to apply

    Beginning in 2020, you can apply to the Government of Yukon for a rebate. Applications will be accepted from January 1 to September 30 for the previous year. You must keep all receipts for purchases where the federal carbon levy applied.

    Detailed information on how to apply for a rebate will be released in 2019 on Yukon.ca.

    Filing your tax return

    If you deduct carbon levies as a business expense, you must report your rebate as income on the following year’s tax return.

  6. Rebates for First Nations and municipal governments

    Rebates for First Nations governments

    First Nations governments will receive their 1st rebate on March 31, 2020. It will cover the period of July 1, 2019 to March 31, 2020.

    This will be followed by annual payments.

    Rebates for municipal governments

    Municipal governments will receive their 1st rebate on April 1, 2020. It will cover the period of July 1, 2019 to March 31, 2020.

    This will be followed by annual payments.


Contact 

If you have questions email carbonrebate@gov.yk.ca, phone: 867-667-5343; or toll free in Yukon: 1-800-661-0408, ext. 5343.