Learn about Yukon's carbon rebate

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.

The Canada Revenue Agency (CRA) administers the rebate 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?

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%.

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

Date	Rebate	Remote supplement
July 2020	$48	$4.80
October 2020	$48	$4.80
January 2021	$48	$4.80
April 2021	$48	$4.80

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

Household rebates

To reduce administrative costs, 1 payment will 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.

How you'll get your rebate

The Canada Revenue Agency (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.

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.

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

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.

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, 43.2, 54 and 55 of the capital cost allowance (CCA) in the Canmet Energy Technical Guide.

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:

• placer-mining operation; or
• quartz-mining operation subject to the Output Based Pricing System (OBPS).

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

Companies involved in exploration projects 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.

Rebates for First Nations governments

First Nations governments will 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 will receive a rebate by April 1 each year. It covers the previous fiscal year.

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.