Carbon levy – Exemptions

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.

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

Exemption certificate

Prior to May 30, 2019, a consumer was entitled to purchase fuel exempt from carbon levy if the consumer provided, at the time of purchase, a carbon levy exemption certificate or other prescribed evidence of exemption and the fuel was intended for a prescribed purpose or use 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 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.

Note that in most cases where the fuel purchased is gasoline or diesel, marked gasoline and marked diesel was required to 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 did 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 was deemed to be a carbon levy exemption certificate. 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

A Ministerial Identification Card (Alberta Indian Tax Exemption or AITE card) was treated as a carbon levy exemption certificate for transportation fuels when fuel was 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 was being acquired for band management activities or for real property on a reserve, was treated as a carbon levy exemption certificate under the Act and the Regulation.

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

Government of Canada

The Government of Canada was required to provide a written statement to the fuel seller certifying that the fuel ordered/purchased was to 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.

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

Form instructions

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

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

How to register as a self-assessor

Step 1: Fill out the registration form

• Complete the Transportation and Other Fuels Carbon Levy Direct Remitter Registration form (AT5100) (PDF, 1.5 MB).
• Select “Other” in field 9 and enter “Self-assessor” in the line provided.
• See the Transportation and Other Fuels Registration (AT5100) Instruction Guide (PDF, 242 KB).

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 return

Step 1: Complete your return

• File your Self-Assessor Remitter Return online using TRACS.
• See the Self-Assessor Carbon Levy Remitter Return Instruction Guide (PDF, 422 KB).
• Print the confirmation page for your records.

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

• Visit Making payments for more information.
• Related: TRA prescribed interest rates.

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)
  • Instruction Guide (PDF, 242 KB)
• AT5132 – Carbon Levy Claimant Registration – Federal Government, Armed Forces or Diplomatic Corps (PDF, 1.5 MB) (December 2016)
• AT5136 – Carbon Levy Claimant Registration – Consumer (PDF, 1.5 MB) (December 2016)
• AT5137 – Carbon Levy Claimant Registration – Contractor on Eligible Facilities (PDF, 1.5 MB) (December 2016)
• AT5138 – Carbon Levy Claimant Registration – Oil and Gas Production Process before 2023 or Specified Gas Emitter (PDF, 270 KB) (January 2019)
• AT4762 – Notice of Objection (PDF, 115 KB) (July 2017)

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Contact

To submit forms

Complete your forms and email or fax them to:

Email: tra.carbonlevy@gov.ab.ca
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