Starting today, approximately 600,000 small businesses in Canada will begin receiving the long-awaited federal carbon compensation.

This program comes as part of the federal carbon pricing system aimed at reducing pollution by imposing taxes on fossil fuels.

The tax revenues collected in the provinces where the federal carbon pricing system is applied will be returned to eligible small businesses in those areas.

The amounts to be distributed will reach approximately $2.5 billion by the end of 2024. These payments are based on the number of employees in each eligible company, with different amounts set for each province.

For example, a small company in Ontario with 10 employees can receive $4,010 for the years 2019-2024.

The amounts vary in other provinces such as Saskatchewan and Newfoundland and Labrador, depending on the number of employees in those companies.

This program aims to provide financial support to small businesses operating in areas where the federal carbon pricing system is in place, and it does not include sole proprietorships or partnerships but is limited to incorporated businesses.