The Government of Yukon has released its proposed framework for the territory’s carbon price rebate, which will form the basis of new territorial legislation to return carbon pricing revenues to Yukoners.
The framework outlines the amount, frequency and requirements for each group set to receive a territorial rebate.
The Government of Yukon has made a commitment to return all revenues returned from the Government of Canada to individuals, businesses, First Nations governments and municipal governments.
In recognition of challenges associated with prices set by world markets, the Government of Yukon will also rebate revenues to placer and quartz mining operations.
Yukoners are encouraged to review the framework by visiting engageyukon.ca. Feedback can be submitted via email to email@example.com until February 4, 2019.
The proposed framework for the carbon price rebate reflects engagement with Yukoners over the last two years and will inform the new carbon rebate legislation that is being developed. The legislation will ensure that Yukon’s competitiveness is not put at a disadvantage as a result of carbon pricing and that Yukoners who rely on fossil fuels will not be penalized. The proposed rebate structure will also reward Yukon businesses who invest in clean technology and operations in the territory as we continue to support the creation of good jobs in a sustainable environment.
Minister of Finance Sandy Silver
The proposed framework will see each recipient group receive a larger rebate, on average, than costs paid in carbon pricing. This is because some groups including the Government of Yukon, federal government and tourists will not receive rebates.
Individuals can expect four annual payments as part of the carbon rebate while each other group will receive a single annual transfer.
The first payments to individuals will be made in October 2019 with a second payment in April 2020. Yukon businesses will receive a refundable income tax credit with their tax return. First Nations governments will receive annual transfers beginning on March 31, 2020. Municipal governments will receive annual transfers beginning on April 1, 2020. Placer and quartz mining operations can apply to the Government of Yukon for a rebate on January 1, 2020 for the previous fiscal year.
All Yukon individuals will receive a carbon rebate regardless of age. A remote supplement will also be provided to individuals who live outside of an urban area.
The tax credit for Yukon businesses will vary in size based on a weighting of assets that either consume fossil fuels or displace the consumption of fossil fuels. Businesses that invest more in Yukon will receive larger rebates and an additional super green credit will be provided to businesses who invest in clean energy generation and equipment.