Yukon businesses, municipal governments and First Nations governments will continue to benefit from the made-in-Yukon carbon pricing rebate system. The Carbon Price Rebate Amendments Act, 2022, which updates the rebate system to address new federal requirements, recently received assent.
This Act will protect carbon pricing rebates for the trade-exposed mining industry and ensure that the Yukon’s carbon pricing rebate legislation continues to meet new federal benchmark requirements.
“These amendments will ensure that Yukon businesses, municipalities and First Nations continue to benefit from the Yukon’s carbon pricing rebate system in a way that meets new requirements being imposed by the federal government. We are pleased to see the Yukon NDP and the Yukon Party support our made-in-Yukon carbon pricing rebate system,” said Yukon’s Premier and Minister of Finance Sandy Silver.
“A price on pollution is an important tool to reduce greenhouse gas emissions, meet the Yukon’s targets in Our Clean Future and support the transition to a greener economy. We will continue to collaborate with Yukon communities, businesses and First Nations governments to address the impacts of climate change as we continue to transition to a clean economy.”
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. These amendments update the 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.
The Carbon Price Rebate Amendments Act, 2022 amends the current rebate by creating a dedicated mining rebate within the general business rebate system and reduces administrative complexities for placer and quartz miners applying for rebates. The amendments to preserve the made-in-Yukon carbon pricing rebate system received support from all parties in the Yukon Legislative Assembly.
The updated rebate mechanism will apply starting in 2023 and mine operators will continue to operate under the existing framework for fuel purchased before December 31, 2022.
Currently, mine operators must file an annual application by September 30 each year, in order to receive their carbon rebates. Under the new changes, operators will be able to claim their rebate at the same time that they file their annual income tax return.
Featured image credit: Government of Yukon/N. Lemieux.