Bill 1, An Act to Repeal the Carbon Tax, received Royal Assent on June 4, 2019. The carbon levy no longer applies to any type of fuel as of the beginning of the day on May 30, 2019. Fuel sellers are expected to comply with the changes set out in the Bill.

As a result, all Alberta carbon levy exemptions are no longer applicable, and all carbon levy exemption certificates and licences are cancelled effective at the end of the day on May 29, 2019.

For more information related to direct remitters, licence or exemption certificate holders, see Special Notice Vol. 11 No. 14 – Repeal of the Carbon Levy.

Contact Tax and Revenue Administration (TRA) if you have any questions related to the administration of the carbon levy.

Contact Canada Revenue Agency (CRA) if you have questions related to the federal fuel charge under the Greenhouse Gas Pollution Pricing Act (Canada).

Overview

Tax and Revenue Administration (TRA) administers the Climate Leadership Act and Regulation, which provides for the collection of Alberta carbon levy from January 1, 2017 to May 29, 2019, and the refund or rebate of carbon levy to eligible fuel sellers and consumers.

A consumer who uses the fuel for eligible activities may apply for an exemption certificate to obtain fuel exempt from the carbon levy at the time of purchase.

You may be eligible for a carbon levy rebate if you used the fuel for an eligible exempt purpose and you were charged the carbon levy.

You are required to self-assess and remit the carbon levy if the fuel purchased exempt from carbon levy was subsequently used for a non-exempt purpose.

Eligibility

For a quick summary, see the Carbon Levy Exemptions Fact Sheet.

Exemption certificate

A consumer is entitled to purchase fuel exempt from carbon levy if the consumer provides, at the time of purchase, a carbon levy exemption certificate or other prescribed evidence of exemption and the fuel is intended for a prescribed purpose or use including fuel that is used:

  • in an oil and gas production process prior to January 1, 2023
  • as a raw material, diluent, or solvent in a manufacturing process and is not put into a fuel system that produces heat or energy
  • as a raw material, diluent, or solvent in a petrochemical process and is not put into a fuel system that produces heat or energy

Aviation fuel users that consume aviation gasoline or aviation jet fuel in flights made for commercial purposes may also be eligible for an exemption. See the Consumers of Aviation Fuel page for specific information regarding this type of exemption.

Note that in most cases where the fuel purchased is gasoline or diesel, marked gasoline and marked diesel must be purchased using the carbon levy exemption certificate in order to receive the exemption. See the information circulars dealing with exemptions in the publications section.

Other prescribed evidence of exemption

The following consumers do not need to apply for a carbon levy exemption certificate from Tax and Revenue Administration (TRA):

Farmers

The farmer’s active Alberta Farm Fuel Benefit number is deemed to be a carbon levy exemption certificate. Farmers are exempt from the carbon levy on marked diesel and marked gasoline when the marked fuel is used in eligible farming operations.

Eligible consumer on a reserve

The Government of Alberta recognizes that many First Nations people and communities in the province prefer not to describe themselves as Indians/Indian bands. These terms have been used where necessary to reflect their legal meaning in the federal Indian Act.

A Ministerial Identification Card (Alberta Indian Tax Exemption or AITE card) is treated as a carbon levy exemption certificate for transportation fuels when fuel is purchased on or delivered to a location on a reserve.

For other fuels, the existing AITE card, the federal identification card, or for an Indian band, an original certificate showing that the fuel is being acquired for band management activities or for real property on a reserve, will be treated as a carbon levy exemption certificate under the Act and the Regulation.

Government of Canada

The Government of Canada must provide a written statement to the fuel seller certifying that the fuel ordered/purchased will be used by a department, agency or corporation that is part of the Government of Canada or is a tax-free Government of Canada agency and not subject to the carbon levy.

Armed forces of another country

Armed forces of another country stationed in Alberta may provide documentation to the fuel seller confirming that they are armed forces of another country stationed in Alberta.

Form instructions

Trouble opening or completing fillable PDF forms?

Fillable PDF forms do not open properly on some mobile devices and web browsers. If the form doesn't open, or you can't complete the form, or you see a "please wait" message, follow these steps to complete and save fillable forms from Tax and Revenue Administration (TRA):

  1. Right-click on the form link and select "Save Target As" or "Save Link As", and save the form to your computer.
  2. Launch Adobe Reader.
  3. Open the PDF from within Adobe Reader. You can now fill and save your form.

To submit your forms

Forms cannot be sent through email. Complete and print your forms and bring, mail or fax them to TRA.

How to apply for an exemption

Step 1: Fill out the application

Step 2: Submit your application

  • Bring, mail or fax your completed application and schedule(s) to TRA.

Step 3: Receive decision letter

  • If approved, you will receive a letter and exemption certificate indicating your exemption number and Business Identification Number (BIN).

How to get a rebate if you are eligible

Consumers that purchased fuel with the carbon levy included – and then used the fuel for an eligible exempt purpose – may apply for a carbon levy rebate.

Persons that are eligible for a rebate must register as a claimant (see Information for Claimants), before they can complete the online claim form in Tax and Revenue Client Self-service (TRACS).

Information for claimants

How to register

Step 1: Fill out the registration form

Complete the applicable Carbon Levy Claimant Registration form:

Step 2: Submit your application

  • Bring, mail or fax your completed form to TRA.

Step 3: Receive decision letter

  • If approved, you will receive a letter indicating your Business Identification Number (BIN).

Step 4: Register for TRACS (TRA Client Self-Service)

How to file a rebate claim

Bill 1, An Act to Repeal the Carbon Tax, was introduced in the Alberta Legislature on May 22, 2019. Alberta will begin administering the changes set out in the Bill effective immediately at the beginning of the day on May 30, 2019.

A claim for a rebate of carbon levy paid on fuel used for an eligible exempt purpose must be received by TRA not later than 2 years from the end of the year in which the fuel was purchased. The claim is filed on a calendar quarter (January to March, April to June, July to September, and October to December) basis as needed.

Step 1: Complete your claim

  • Submit your carbon levy claim online using TRACS.
  • Print the confirmation page for your records.

Step 2: Receive your rebate

  • Receive your rebate by direct deposit. If there were changes made to your claim, a letter of assessment will be made available in TRACS under View Assessments.

How to set up direct deposit

  • Login to your TRACS account
  • Select “Manage Direct Deposit”
  • Enter your banking information and contact information
  • Click “Submit”

Information for self-assessors

Consumers that purchase fuel exempt from the carbon levy – but subsequently use the fuel for a non-exempt purpose – are required to report and remit the carbon levy 28 days from the end of the month the fuel was used for a non-exempt purpose.

How to register as a self-assessor

Step 1: Fill out the registration form

Step 2: Submit your application

  • Bring, mail or fax your completed form to TRA .

Step 3: Receive decision letter

  • If approved, you will receive a letter indicating your Business Identification Number (BIN).

Step 4: Register for TRACS (TRA Client Self-Service)

How to file a return

A Self-Assessor Remitter Return is due on or before the 28th day of the month following the end of the month the fuel was used for non-exempt purposes. You will be charged a penalty if you file your return late.

Step 1: Complete your return

Step 2: Remit the levy collected and view the Notice of Assessment

  • Remit the levy owing on or before the 28th day of the month following the end of the month the fuel was used for a non-exempt purpose.
  • Interest will be charged on late remittances and will continue to accrue until the balance is paid in full.
  • If there were changes made to your return or a balance is owing, a notice of assessment will be available in your TRACS account under View Assessments.

How to pay

Maintain your account in TRACS

TRA Client Self-Service (TRACS) is a secure online system for authorized Tax and Revenue Administration (TRA) clients to conveniently conduct business with TRA. You can do the following tasks in TRACS.

  • submit a claim
  • confirm receipt of submitted returns
  • view status of prior assessments, financial details and notices of assessment and reassessment (if applicable)
  • access financial information and view account period balances
  • update address and contact information
  • delegate account access to other employees or authorized individuals
  • set up direct deposit for carbon levy refunds
  • complete a notice of objection
  • submit documents

For more details, instructional videos and to log in to your TRACS account, see TRACS information.

Publications and forms

Information circulars

These documents discuss procedural matters and administrative policies and practices for programs administered by TRA. They are updated as necessary and a revision number assigned.

Special notices

These documents are used to announce changes to the legislation administered by TRA, or changes to administrative policies and practices carried out by TRA. These notices are time-specific, and meant to be transitory in nature. The information may eventually be incorporated into other publications, such as information circulars or web content.

Fact sheets and instruction guides

Forms

If you have trouble opening or completing fillable PDF forms, see the form instructions.

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Contact

To submit forms

Please note: forms cannot be sent through email. Complete and print your forms and bring, mail or fax them to:

Tax and Revenue Administration
Alberta Treasury Board and Finance
9811 109 Street NW
Edmonton, Alberta  T5K 2L5

Fax: 780-644-4144

To connect with Tax and Revenue Administration

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Phone: 780-644-4300
Toll free: 310-0000 before the phone number (in Alberta)
Email: tra.carbonlevy@gov.ab.ca