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YT Government: Carbon Price Rebate changes proposed to meet new federal requirements

Press Release

Oct 12, 2022

An amended Yukon carbon pricing rebate for miners would maintain support for the trade-exposed industry while meeting new federal benchmark requirements. Today, Premier Sandy Silver tabled Bill No. 21, the Carbon Price Rebate Amendments Act, which would preserve and protect rebates for Yukon businesses, municipal governments and First Nations governments.

Since 2019, the Government of Yukon has administered a revenue neutral fund, which returns all carbon pricing revenues received back to Yukoners. The federal government has imposed additional requirements for jurisdictions which administer their own carbon price or rebate regimes. Bill 21 proposes to amend the current rebate for the Yukon’s mining industry to meet new federal requirements while ensuring that Yukon businesses, municipalities and First Nations continue to receive rebates.

Bill 21 would merge the mining rebate with the general business rebate and reduce administrative barriers for placer and quartz miners applying for rebates. Currently, mine operators must file an annual application by September 30, each year, to determine their carbon rebate amount. Under the proposed changes, operators would be able to claim their rebate at the same time that they file their annual income tax return.

The proposed rebate mechanism would apply starting in 2023 and mine operators will continue to operate under the existing framework for fuel purchased before December 31, 2022.

The Yukon government supports putting a price on pollution as a mechanism to reduce greenhouse gas emissions while ensuring the territory remains competitive as we transition to a green economy. These amendments would ensure that carbon pricing revenues continue to benefit Yukon businesses and local governments in a way that recognizes the unique challenges facing trade-exposed industries and meets new national benchmark requirements.

Premier and Minister of Finance Sandy Silver

Quick facts

  • The Government of Yukon uses existing fuel-use data to estimate anticipated levies so Yukoners don’t have to wait for their rebate. It allows government to issue rebates that align with the federal levies that Yukoners pay at the pump.
  • The Yukon Government Carbon Price Rebate is revenue neutral. All federal levies collected in the Yukon are returned to Yukoners, businesses, First Nations governments and municipal governments.
  • Annual rebates to individuals and households are issued as quarterly payments from the Canada Revenue Agency.
  • Rebates to Yukon businesses are issued as a refundable income tax credit with their tax return. The credit is based on a weighting of assets and will support investments in green technology and equipment.
  • As outlined in Our Clean Future, rebates support Yukoners and Yukon businesses to invest in low-carbon alternatives, ensuring the territory remains competitive as we transition to a green economy while protecting vulnerable families.
  • Yukon’s rebate system is the result of significant discussions with Yukoners, governments and industry. It also aligns with Yukon’s commitments under the Pan-Canadian Framework on Clean Growth and Climate Change.

Contact

Renée Francoeur
Cabinet Communications
867-334-9194
[email protected]

Eric Clement
Communications, Finance
867-393-6482
[email protected]

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