Will You Benefit From the Federal Liberal Government's Carbon Tax?

The federal government's carbon tax is set to come into force on April 1, 2019. How can you, your family, or your small or medium business (small and medium businesses) benefit from climate change, specifically, from the federal government's carbon tax? The federal carbon tax will be fixed at a price of $20 per tone, and will increase by $10 per year until the price hits $50 in 2022.  Starting in April, and over the next 12 months, the federal government anticipates the carbon tax will bring in approximately $2.3 billion. Where this money will go is where you may benefit from climate change and the federal government's carbon tax. Indeed, the federal government stated that every dollar will be redistributed to the provinces from which the money was levied. 

The federal government plans to return 90% of moneys levied from the carbon tax to individuals and families living in the provinces from which carbon tax moneys were raised; currently, these provinces are Ontario, Manitoba, New Brunswick, and Saskatchewan. Based on this percentage, projected incentive payments for individuals will range from $128 to $305 per individual adult, and $256 to $609 for a family of four.  If you are a small or medium business, municipality, hospital, or community organization, you stand to benefit from the remaining 10% of moneys raised from the federal government's carbon tax. Over a 5-year period, the government anticipates an approximate distribution of $1.46 billion dollars. If you are a municipality, hospital or community organization, the federal government projects an approximate distribution of $727 million over 5 years.

Other than the above-stated benefits, small businesses also stand to benefit from climate change to the extent that they make energy-efficient decisions about their business. Indeed, the federal government has stated its plan to ease the burden of a carbon tax on small businesses by implementing rebate payments to cover some of the costs of making energy efficient upgrades to their business. While the finer details of the small business rebates are still in the workings, what remains sure is that the plans will incentivize investments in energy-efficient projects.