What is Happening with the 2023 Carbon Tax Grant/Exemption?

BCLNA worked with the BC Greenhouse Growers’ Association and the United Flower Growers to move the 80% carbon tax exemption in BC from a pay up front and get a grant later system to a point-of-sale credit. This lobbying effort paid off and the BC Government announced the change effective April 1, 2023.

The previous process was that greenhouse operations paid Fortis or other gas suppliers the full carbon tax and then applied for the Greenhouse Carbon Tax Relief Grant. These applications were usually made in April and paid out by end of June with payments being calculated and paid based on the previous year’s usage. This understandably led to some confusion that the payment was reimbursement for the previous year’s carbon tax paid, however it was a grant to assist with the current year of application. This means there will not be any gap in the Carbon Tax grant for 2022.

In this transition year, the Greenhouse Carbon Tax Relief Grant will cover the period of January through March 31st based on actual usage, so getting your usage as soon as possible is important. Applications need to be submitted by May 31, 2023. According to the website, if you do not complete the certificate, you’re responsible for paying the full tax as applicable even if you qualify for the partial exemption. To see the full government website click HERE. In speaking with Fortis, they indicated that their billing will not change potentially until the summer. The Government also announced a refund process for carbon taxes paid starting April 1, 2023 (if you have submitted a certificate). The form for that refund is being developed.

So, what do you need to do?

  1. Submit Form FIN 463, Certificate of Partial Exemption to your gas supplier or marketer and supplier right away. The Fortis email is [email protected]. For Shell Natural Gas you can email [email protected]. We are still getting details on how to claim Propane through Shell marketers.
  2. Apply for the Greenhouse Carbon Tax Relief Grant as soon as your March billing is available.
  3. Apply for any refund for gaps in implementation between April 1, 2023 and when your supplier implements the point of sale credit. This piece is still in process.

The application for the 2023 grant is now live and is open until May 31, 2023. You will need to get a one or two-page annual fuel usage summary for January to March 2023 from your supplier so contact them right away.

For more information and links to the application, click HERE.

The application covers the period from January to March 2023, as the new Partial exemption for greenhouse growers is effective April 1st, 2023. The application is much smaller this year due to the partial period covered. In most years, the Grant used the previous year’s natural gas usage in order to determine the Grant, however, because the natural gas usage for January to March 2023 is available, that period is what will be used to determine the 2023 grant.

The new greenhouse carbon tax exemption will replace the Greenhouse Carbon Tax Relief Grant on April 1, 2023. It will offer eligible greenhouses an 80% carbon tax reduction on the propane or natural gas sales at the point-of-sale rather than having growers recoup those expenses through the relief grant program. To be eligible for the reduction, commercial producers must use more than 90% of the greenhouse for growing vegetables, ornamental flowers or plants, forest seedlings, or nursery plants if:

  • they sold more than $20,000 in eligible plants in 2022
  • they expect the same revenues in the next year
  • they will use natural gas or propane to heat their greenhouses or to produce carbon dioxide

NOTE: Deadline for Applications for refunds for the period up to April 1, 2023 is May 31, 2023.

Apply HERE.