Carbon Rebates and Funding in Yukon: What Businesses Need to Know
In Yukon, carbon pricing can either eat into margins or open the door to new opportunities. This blog explores how businesses in Whitehorse and beyond can use rebates, funding, and smart planning to turn a cost into a competitive advantage.
When I meet with business owners and non-profits across the Yukon, I hear the same story. The rules around carbon pricing are complex, programs keep shifting, and too many organizations are leaving money on the table. My role is to make sure you understand what is actually available so you can make smart financial decisions.
What Funding Exists in Yukon
Yukon Carbon Rebate
Businesses can claim the Yukon Carbon Rebate directly through the CRA by filing Schedule YT(S14) with your tax return. The rebate is based on the undepreciated capital cost of Yukon assets like buildings, vehicles, and fossil-fuel-burning equipment.
If you have invested in clean technology, certain capital cost allowance classes (43.1, 43.2, 54, 55, 56) apply and can increase your rebate. The Super Green Credit, which gave an extra boost for clean tech, ended after March 31, 2025. However, you may still be able to file for it if your fiscal year ended before that date.
Low Carbon Buildings Program
This program provides grants for upgrades and new construction in commercial and institutional buildings. Many businesses assume it only applies to government or residential projects, but that is not true. Local retailers, service businesses, and non-profits are eligible.
Funding covers up to 25% of project costs for businesses and up to 50% for non-profits. Eligible projects include insulation, heat pumps, biomass heating, and heat recovery ventilation. The program runs until 2029, so there is time to plan—but the earlier you take advantage, the more value you will see.
Fuel Charge Exemptions and Mining Rebates
Operators in mining and agriculture may qualify for exemptions or refunds on fuel charges. Mining companies also have access to a separate carbon rebate that is claimed through Schedule 444.
The Mistakes I See Most Often
Many organizations miss out on rebates and funding opportunities due to common missteps:
- Forgetting to file the Yukon Carbon Rebate. It is not automatic. If you do not file Schedule YT(S14), you will not receive it.
- Not tracking asset use properly. You need to show that assets are located in Yukon to qualify.
- Overlooking Good Energy rebates. Many assume these programs are only for others, missing out on grants worth 25–50% of project costs.
- Misclassifying clean tech assets. If assets are not in the correct capital cost allowance class, the higher rebate is lost.
- Believing only large emitters qualify. Smaller operations, non-profits, retailers, and service providers can all benefit.
What to Do Before Year-End
If your fiscal year-end is approaching, it’s worth completing or documenting capital purchases of eligible Yukon assets before the year closes. Rebates are based on what is in your undepreciated capital cost balance at year-end. Waiting until next year means it won’t count for the current year’s rebate.
Make sure you:
- Classify assets correctly in your books
- Keep proof of purchase dates and invoices
- Confirm that the asset is actively used in Yukon
My Takeaway
Carbon pricing in Yukon is not just another cost of doing business. For some, it will stay an expense that drains margins. For others, it can be managed strategically with rebates claimed, funding accessed, and future costs accounted for.
With LedgerLine, I work alongside you to sort out eligibility, capture the credits you qualify for, and structure your finances so rising costs do not catch you off guard. The goal is simple: protect your cash flow and create stability for the long term.
Get in touch today and we will walk through your options together.
