Learn about Yukon's carbon rebate

  • 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
  • Learn about the federal price on pollution

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. 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.


  2. Rebates for Yukon individuals

    Eligibility

    You are eligible for a rebate if you:

    • file a Yukon income tax return for the year prior to the current carbon rebate year; and
    • are 19 years or older.

    Carbon rebate year

    • July 1 to June 30

    How much will I get?

    2021–22 carbon rebate year

    Date Rebate Remote supplement

    July 2021

    $44

    $4.40

    October 2021

    $44

    $4.40

    January 2022

    $44

    $4.40

    April 2022

    $44

    $4.40

    If you live in Whitehorse, you will receive a rebate.

    If you live outside of Whitehorse, you will receive a rebate and a remote supplement. This increases your rebate payments by 10%.

    How you'll get your rebate

    The Canada Revenue Agency (CRA) administers the rebate for Yukon individuals.

    CRA provides payments via cheque or direct deposit. Information provided on tax returns is used to determine the payment method.

    If you are eligible for the GST/HST credit, your carbon rebate payment will be combined with your GST/HST credit payment.

    Household rebates

    To reduce administrative costs, 1 payment will be made per family. 

    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.

    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.

    Rebates in previous years

    2020–21 carbon rebate year

    Date Rebate Remote supplement

    July 2020

    $48

    $4.80

    October 2020

    $48

    $4.80

    January 2021

    $48

    $4.80

    April 2021

    $48

    $4.80

    Why did the rebate decrease from April 2020 to April 2021?

    Yukon’s carbon rebate program is revenue neutral. All revenues are returned to Yukoners and each eligible group receives a percentage of the total federal levies paid in Yukon. The COVID-19 pandemic resulted in significant reductions in fuel use and this has decreased the amount of carbon levies collected in Yukon. 

    Carbon rebates are not linked to the cost of fuel, but are based on carbon emissions. Reductions in visitation have also impacted rebates because all levies paid by visitors are returned to eligible rebate groups. 

    The effects of the pandemic on federal levies are reflected in rebates to Yukon individuals, which began in July 2021.

    Interim rebates

    Yukoners started receiving carbon rebates in October 2019. These interim payments did not include a remote supplement.

    Date Rebate
    October 2019 $43
    April 2020 $43

  3. Rebates for Yukon businesses

    Eligibility

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

    • is a Yukon business; and
    • files a tax return in Yukon.

    Placer- and quartz-mining businesses

    If your company applies for a mining rebate, you can't claim this rebate for assets at your mining operation.

    General business rebate

    The general business rebate is issued as 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.

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

    Rebates qualify as income

    If you claim the federal carbon levy as a business expense, you need to report the rebate 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.

    How much will I get?

    Categories (per $1,000 in assets) 2019–20 2020–21 2021-22
    Buildings $1.72 $3.45 $4.41
    Equipment that burns fossil fuels $8.62 $17.24 $22.03
    Assets eligible for a Super Green Credit $17.24 $34.48 $44.05

    Super Green Credit for businesses

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

    Eligible assets are listed under class 43.1, 43.2, 54 and 55 of the capital cost allowance (CCA). This includes:

    Find more tax savings and the energy technical guide for CAA class 43.1 and 43.2 on the Government of Canada website.

    You may also be eligible for a Good Energy rebate for your zero-emission vehicle or electric vehicle charger.

     

     


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

    The Government of Yukon administers rebates to placer- and quartz-mining operations.

    You can apply for a rebate if you are an eligible:

    Eligibility

    You can apply for a rebate on carbon levies paid for mining purposes permitted by:

    • a valid class 4 placer mining land use approval; or
    • a valid quartz mining licence issued under section 135 of the Quartz Mining Act.

    Placer-mining operations

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

    Apply for a rebate

    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 to 10 kilotonnes.

    Apply for a rebate

    Exploration companies

    Operations that don’t meet the licensing requirements for the mining rebate may be eligible for the general business rebate.

    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.


  5. Rebates for First Nations and municipal governments

    Rebates for First Nations governments

    First Nations governments receive a rebate by March 31 each year. It covers the period from April 1 of the previous year to March 31 of the current year.

    Rebates for municipal governments

    Municipal governments receive a rebate by April 1 each year. It covers the previous fiscal year.


  6. Learn about the federal price on pollution

    The federal government’s carbon pollution pricing levy took effect in Yukon on July 1, 2019. This initial levy was $20 per tonne of carbon dioxide equivalent (C02e) emissions.

    On April 1, 2020 it increased to $30 per tonne. 

    On April 1, 2021, it increased to $40 per tonne.

    Current fuel charge rates

    As of April 1, 2021, the federal fuel rates are:

    • gasoline 11.05 cents per litre;
    • light fuel oil (diesel or heating) 13.41 cents per litre; and
    • propane 7.74 cents per litre.

    The federal levy will increase to:

    • $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 Table 2.

    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.

Contact 

Rebates for individuals

Questions should be directed to the CRA.

  • Phone: 1-800-387-1193 
  • If you are within Yukon's 867 area code, you can call the CRA Northern Service Centre.
    • Phone: 1-866-426-1527

Go to the CRA

Rebates for businesses

Questions should be directed to the CRA.

T1 tax return applications:

  • Phone: 1-800-959-8281
  • If you are within Yukon's 867 area code, you can call the CRA Northern Service Centre.
    • Phone: 1-866-426-1527

T2 tax return applications:

  • Phone: 1-800-959-5525
  • If you are within Yukon's 867 area code, you can call the CRA Northern Service Centre for businesses.
    • Phone: 1-866-841-1876 

Go to the CRA

Rebates for Yukon placer- and quartz-mining operations

Questions can be directed to the Government of Yukon:

  • Email: yk.taxreturns@yukon.ca
  • Phone: 867-667-5345 or toll free in Yukon 1-800-661-0408 and ask for Tax Administration.

Other questions

If your question does not relate to rebates for individuals, businesses or mining operations, contact the Government of Yukon:

  • Email: carbonrebate@yukon.ca
  • Phone: 867-667-5811 or toll free in Yukon 1-800-661-0408 and ask for Fiscal Policy.