Small business to get rebates for some of the cost of energy efficiency projects

An official confirmed afterwards the plan will include rebate payments.

The federal government’s plan to ease the carbon-price burden on small businesses will include rebate payments to cover some of the cost of making energy-efficiency upgrades.

Environment Minister Catherine McKenna — who kicked off a month-long carbon-price tour at a Canadian Tire store in her Ottawa Centre riding Monday morning — said the final details of the plan are being worked out with business associations.

“I want it to be a program that isn’t highly bureaucratic, where you can make investments and get the money back right away,” she said.

An official confirmed afterwards the plan will include rebate payments.

The federal carbon price of $20 per tonne of carbon dioxide will start being charged April 1 on fossil-fuel inputs in Ontario, Manitoba, Saskatchewan and New Brunswick — the four provinces without an equivalent provincial carbon price.

The price goes up by $10 each year until it hits $50 a tonne in 2022, when the Liberals, should they be re-elected in the fall, have promised to review the program to determine where the price goes after that.

The Liberals expect to bring in about $2.3 billion over the next 12 months in the four provinces having the levy imposed on them, and McKenna says every cent will be returned to the provinces where it was raised.

READ MORE: NDP MP calls for Facebook investigation following UK media reports

About 90 per cent of the money will go to individuals when they file their income taxes in the coming weeks.

The remaining 10 per cent is earmarked for small businesses, municipalities, hospitals, universities and Indigenous communities to cover what they can’t pass on to consumers or their own taxpayers through higher prices.

The government expects to provide at least $1.46 billion over five years to small and medium-sized businesses, including $155 million in the fiscal year starting April 1. Hospitals, municipalities and other community organizations will share at least $727 million over five years, starting with $73 million in 2019-2020 fiscal year.

Monique Moreau, vice-president of national affairs for the Canadian Federation of Independent Business, said rebates for energy efficiencies might help companies that haven’t done much on that front already. But she also said that fewer than one-fifth of the CFIB’s members fall into that category.

Energy-efficiency rebates, she said, can also be quite complicated and have in the past required spending on an energy audit up front. Banks also don’t want to lend money for these projects, she said, making it hard to finance the work before getting the rebate.

The CFIB doesn’t want a carbon tax at all, but Moreau said if the government is moving on it, there should be other measures to offset the financial hit for business, such as cutting payroll taxes like Canada Pension Plan contributions. Those contributions are to grow over the next five years so the government can increase payments to retirees. Moreau said a reduction in employment-insurance premiums didn’t offset the rise in pension-plan costs, making CPP another hit to business, beyond the carbon price.

The small-business tax rate was cut from 10.5 per cent to nine per cent over the last two years, which is one thing Ottawa points to when discussing making operations more affordable for business.

READ MORE: Metro Vancouver home sales sluggish in February as prices keep falling

McKenna will spend most of March promoting the climate incentive payments for individuals, which range from $128 to $305 for a single adult, and $256 to $609 for a family of four. (She’s to be in Windsor, Ont., on Tuesday.) The payments vary by province based on different sources of energy, with Saskatchewan families paying more in the carbon price largely because they get most of their electricity from coal.

The Liberals are also launching a series of radio ads on the carbon price and rebates in the four affected provinces this week.

Mia Rabson and Joan Bryden, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Langley Home Expo shows off home and yard improvements

The annual event is being held in Brookswood at the George Preston Rec Centre

Winner announced in Langley Total Makeover Contest

Cheri McBride thanked friends and family for supporting her

LETTER: Langley cycling lanes sparse and treacherous

Bike to School and Bike to Work week is taking place May 27-31

Public invited to Alzheimer walk in Langley

A Langley seniors complex and a North Langley business group have teamed… Continue reading

OPP looking for suspect after Best Buy credit-card fraud in Surrey

Ontario Provincial Police believe suspect has links to Surrey and Langley

B.C.’s fight to regulate bitumen through pipelines to go to Canada’s top court

BC Appeal Court judges found B.C. cannot restrict bitumen flow along Trans Mountain pipeline

Burnaby facility to dispose of 1,500 tonnes of Canada’s trash from Philippines

All 103 containers will be disposed of properly within Canada before the end of the summer

Scheer says it would take Conservatives five years to balance budget

Scheeraccused the Liberal government of spending $79.5 billion of previously unbudgeted funds

Man wants guilty plea revoked in 2012 collision in Abbotsford that killed Chilliwack woman

Michael Larocque was charged in relation to crash that killed Eileen Kleinfelder

High-risk sex offender released into Surrey

Earon Wayne Giles, a Newton “tag-team rapist,” was released from prison Friday and is now living in Surrey

Vancouver woman sexually assaulted after man follows her home; suspect at large

Police are looking for an Asian man in his 40s after the incident on Vancouver’s east side.

B.C. man, 30, arrested for driving his parents’ cars while impaired twice in one day

The Vancouver-area man was arrested after officers caught him driving impaired twice in one day

UPDATE: Vancouver man dies after crash between motorcycle, transport truck

Police believe speed was a factor in Thursday collision

Trial slated to start Monday for accused killer of Abbotsford cop

Oscar Arfmann faces first-degree murder for death of Const. John Davidson

Most Read