Carbon levy – Exemptions

COVID-19 response: TRA's online services and special notices

Tax and Revenue Administration (TRA) encourages taxpayers to use electronic means (for example: Netfile, TRACS, secure email, electronic payment, etc.) to submit payments, registrations, applications, returns, claims, objections, waivers and appeals.

In order to reduce the necessity for taxpayers and tax preparers to meet in person, TRA will recognize electronic signatures. To add a digital signature, the form must first be downloaded or opened as a PDF.

For more information, see TRA online services.

Repeal of the carbon levy

The carbon levy no longer applies to any type of fuel in Alberta.

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

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

A claim for a refund or rebate of carbon levy to eligible fuel sellers and consumers must be made no later than 2 years after the end of the calendar year in which the fuel purchased included the carbon levy.

Eligibility

Exemption certificate

Prior to May 30, 2019, a consumer was entitled to purchase fuel exempt from the carbon levy if the fuel was intended for a prescribed purpose, including fuel that was used:

in the operation of a facility pursuant to Carbon Competiveness Incentive Regulation (CCIR) (which replaced the Specified Gas Emitters Regulation on January 1, 2018)

in an oil and gas production process

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

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

Consumers who did not need to apply for a carbon levy exemption certificate

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

Farmers

Farmers were exempt from the carbon levy on marked diesel and marked gasoline when the marked fuel was used in eligible farming operations.

For more information on this type of exemption, see Fuel tax and carbon levy – farmers.

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.

Fuel that was purchased on or delivered to a location on a reserve to an eligible consumer exempt from the carbon levy.

For more information on this type of exemption, see Alberta Indian Tax Exemption.

Government of Canada

Fuel ordered/purchased and used by a department, agency or corporation that is part of the Government of Canada or is a tax-free Government of Canada agency was not subject to the carbon levy.

For more information, see Information Circular FT-4 – Sale of Tax Exempt Fuel.

Armed forces of another country

Armed forces of another country stationed in Alberta were exempt from the carbon levy.

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):

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

Electronic signatures allowed

In order to reduce the necessity for taxpayers and tax preparers to meet in person, TRA will recognize electronic signatures. This administrative measure applies to all prescribed forms administered by TRA. To add a digital signature, the form must first be downloaded or opened as a PDF.

To submit your forms

Complete your forms and submit them to TRA.

How to get a rebate if you are eligible

Consumers that purchased fuel between January 1, 2017 and May 29, 2019, 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:

Federal Government, Armed Forces or Diplomatic Corps (AT5132) (PDF, 1.5 MB)
Consumer (AT5136) (PDF, 1.5 MB)
Contractor on Eligible Facilities (AT5137) (PDF, 1.5 MB)
Oil and Gas Production Process before 2023 or Specified Gas Emitter (AT5138) (PDF, 270 KB)
- This form is to be completed by an entity which paid carbon levy on fuel used in an oil and gas production process before 2023, or in the operation of a specified gas emitter, including clear diesel or gasoline used in a licensed mobile service rig.
- For more information about the Mobile Service Rigs Rebate for Carbon Levy Paid on Clear Fuel, see:
  - Special Notice Vol. 11 No. 13
  - Fact sheet
Eligible consumer on reserve – see Alberta Indian Tax Exemption (AITE)
Aviation Fuel User – see Consumers of Aviation Fuel
Farmer – see Fuel Tax and Carbon Levy – Farmers

Step 2: Submit your application

Submit 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)

Complete the TRACS Enrolment Request to enrol in TRACS or contact TRA.
Visit the TRACS page for more information.

How to file a rebate claim

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.

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.

TRA-1R1 – An Introduction to Tax and Revenue Administration (March 2018)
TRA-2 – TRA Fairness and Service Pledge (July 2018)
TRA-3 – Alberta Commodity Tax Acts – Voluntary Disclosures (November 2018)
CL-1 – Overview of Carbon Levy on Fuel (December 2016)
CL-NG-1 – Natural Gas (Heating Purposes) – Registration (November 2016)
CL-NG-2R1 – Natural Gas (Heating Purposes) – Payable, Filing and Remittance (November 2016)
CL-NG-4 – Natural Gas (Heating Purposes) – Refunds and Rebates (December 2016)
CL-AV-1 – Aviation Fuels – Registration, Payable, Filing and Remittance (December 2016)
CL-AV-4 – Aviation Fuels – Refunds and Rebates (December 2016)
CL-T-1 – Transportation Fuels – Registration (November 2016)
CL-T-2R1 – Transportation Fuels – Payable, Filing and Remittance (November 2016)
CL-T-4 – Transportation Fuels – Refunds and Rebates (December 2016)
CL-OF-1 – Other Fuels – Registration (November 2016)
CL-OF-2R1 – Other Fuels – Payable, Filing and Remittance (November 2016)
CL-OF-4 – Other Fuels – Refunds and Rebates (December 2016)

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.

Vol. 11 No. 14 – Repeal of the Carbon Levy (May 2019)
Vol. 11 No. 13 – Mobile Service Rigs Rebate for Carbon Levy Paid on Clear Fuel (February 2019)
- See related Fact sheet
Vol. 11 No. 8 – Reporting of Fuel Volumes (February 2017)

Instruction guides

Instruction guide – Transportation and Other Fuels Registration (AT5100) (PDF, 242 KB) (June 2017)
Instruction guide – Self-Assessor Carbon Levy Remitter Return (PDF, 422 KB) (January 2018)

Forms

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

AT5100 – Transportation and Other Fuels Carbon Levy Direct Remitter Registration (PDF, 1.5 MB) (October 2016)
AT5132 – Carbon Levy Claimant Registration – Federal Government, Armed Forces or Diplomatic Corps (PDF, 1.5 MB) (May 2020)
AT5136 – Carbon Levy Claimant Registration – Consumer (PDF, 1.5 MB) (May 2020)
AT5137 – Carbon Levy Claimant Registration – Contractor on Eligible Facilities (PDF, 1.5 MB) (May 2020)
AT5138 – Carbon Levy Claimant Registration – Oil and Gas Production Process before 2023 or Specified Gas Emitter (PDF, 270 KB) (May 2020)
AT4762 – Notice of Objection (December 2020)

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Contact

To submit forms

Complete your forms and email or fax them to:

Email: [email protected]
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: [email protected]

Programs administered by Tax and Revenue Administration

About carbon levy administration in Alberta

Carbon levy – Information for consumers

Carbon levy rates

Fuel tax rates

Climate Leadership Act and Regulation

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