Nunavut Carbon Credit
What is the Nunavut Carbon Credit?
The Nunavut Carbon Credit is a non-taxable payment from the Government of Nunavut (GN) designed to help Nunavummiut offset the price of carbon-based fuels.
Who is eligible?
All Nunavummiut are eligible for this tax credit. There is no income threshold or application required. Simply file your 2022 tax return to start receiving automatic payments.
Payments for children or dependents will be made to the tax filer who claims them on their tax return.
How are payments made?
Payments will be issued directly to Nunavummiut by the Canada Revenue Agency (CRA), similar to other rebate programs like the GST.
Unlike the GST, there is no income threshold or eligibility requirements. All Nunavummiut who file their 2022 taxes will automatically receive the Nunavut Carbon Credit.
How do I register to receive payments?
There is no application required. Nunavummiut who file their 2022 taxes will be immediately enrolled for the Nunavut Carbon Credit.
Nunavummiut enrolled in direct deposit with the CRA will receive a payment directly to their bank account; otherwise, a cheque will be sent to the individual. Payments for children or dependents will be made to the tax filer who claims them on their tax return.
How much is the Nunavut Carbon Credit?
This year, the Nunavut Carbon Credit is a total of $308 per individual, or $77 each quarterly payment per individual.
When will I receive payments?
The first payment of the Nunavut Carbon Credit will be on September 5, and will include payment amounts for the first and second quarter of the year.
The next payment will be on October 5 for the third quarter. Payments will occur on a quarterly basis thereafter – on January 5, April 5, July 5 and October 5 in each year the credit is offered.
About the carbon tax
The Government of Nunavut supports efforts to combat climate change, including taking steps to reduce harmful greenhouse gas emissions.
Carbon pricing lowers harmful emissions by making certain activities, like burning fossil fuels, more expensive. As the price of fuel increases, individuals and businesses have a financial incentive to reduce their use.
In 2019, the Government of Canada introduced a carbon tax across Canada,increasing the cost of fossil fuels like gas and diesel by a few cents a litre. The amount of tax depends on how ‘clean’ the fuel is (how much pollution is released when it burns). Dirtier fuel, such as diesel, is taxed higher than cleaner fuel, like propane. The tax rate will increase each year until 2022.
| April 1 | 2019 | 2020 | 2021 | 2022 |
| $ / tonne | 20 | 30 | 40 | 50 |
| Gasoline ($/ L) | 0.0442 | 0.0663 | 0.0884 | 0.1105 |
| Diesel ($/ L) | 0.0537 | 0.0805 | 0.1073 | 0.1341 |
| Propane ($/ L) | 0.0310 | 0.0464 | 0.0619 | 0.0774 |
The GN supports national efforts to reduce climate change, but recognizes that Nunavummiut have fewer options to reduce their use of fossil fuels than southern Canadians.
Remote communities, limited infrastructure, and a small economy mean it will take longer for Nunavummiut and their businesses to adjust to the higher prices.
Funding
The Department of Finance pays for the Nunavut Carbon Rebate from its budget, which it receives from the Legislative Assembly each year.
The actual cost of the rebate depends on the amount of carbon tax PPD owes the Government of Canada, which itself is based on the amount and type of fuel Nunavummiut consume.
The GN has designed the NCR to help Nunavummiut transition to the federal carbon tax over time, not to subsidize the cost of fuel permanently. Starting in 2024, the GN will gradually reduce the value of the NCR until the program phases out in 2028.
Additional Information
Nunavut Carbon Rebate – Contribution Policy
Nunavut Carbon Rebate – Frequently Asked Questions
Nunavut Carbon Rebate – Fact Sheet
Pan-Canadian Framework for Climate Change and Growt