Canada to Give Small Businesses Billions in Carbon Tax Credits

Canada’s new budget offers to return billions in revenue raised through its national carbon tax to small- and medium-sized businesses after political opposition to the levy grew in recent months.

Finance Minister Chrystia Freeland’s spring budget for fiscal 2025 released Tuesday said the Canada Revenue Agency would deliver more than C$2.5 billion ($1.8 billion) to 600,000 businesses with 499 or fewer employees through a refundable tax credit.

The federal government had long promised a sum of carbon tax revenue would be sent directly to small- and medium-sized companies, as well as Indigenous communities. Individual taxpayers have received a ...