Carbon_tax

How will the carbon levy affect my family?

Posted on Monday October 17, 2016 at 04:01PM

Excerpt from Battle River Power COOP with additional information from GoA

How will the carbon levy affect my family?

Impacts of the carbon levy will vary, depending on a household’s energy use and driving patterns. You can take stepS to reduce your emissions by:
• turning down the heat when no one is home
• installing smart thermostats
• choosing more fuel efficient cars
• using public transit
• walking
• biking
• taking advantage of coming energy efficiency programs

More ideas HERE

Estimated indirect impact on households

Because most consumer goods are imported into Alberta, fuels subject to the carbon levy comprise only a fraction of the overall costs. The average total indirect cost of the carbon levy is estimated to range between:
• $6.00 to $8.75 per month per household
• $2.25 to $3.50 per month per individual
Indirect costs were calculated based on Statistics Canada data.

Carbon rebates
To offset the costs associated with the levy, carbon rebates will be provided to lower- and middle-income Albertans. Six in 10 Albertan households will be eligible for the full rebate, and an additional 6% of households will receive a partial rebate.
The rebate is tied to income and not energy use, so eligible recipients have a financial incentive to reduce household emissions.
You don’t need to apply for the rebate. You only need to file a 2015 tax return and meet the income criteria.

Eligibility
Potential carbon rebate recipients must:
• be Alberta residents;
• file a 2015 tax return; and
• meet the income requirements (see table below).
The rebate will begin to phase out at $47,500 in net income for single Albertans, and $95,000 for couples and families

Rebate parameters  
Benefit Amounts 2017 2018

First adult $200 $300
Spouse/ $100 $150
Equivalent to spouse 
Child (max. 4)   $30 $45

Phase-out Thresholds
(Family Net Income) 2017 2018

Single $47,500 $47,500
Couple $95,000 $95,000
Families $95,000 $95,000

Income at which Rebate is Fully Phased Out
(Family Net Income) 2017 2018

Single $51,250 $55,000
Couple $100,000 $103,750
Couple with 1 child  $100,750 $104,875
Couple with 2 children $101,500 $106,000
Couple with 3 children  $102,250 $107,125
Couple with 4 children  $103,000 $108,250
Source: Alberta Treasury Board and Finance

Payments
Payments will be made according to the amount you’re eligible to receive:
$400 or more delivered in 4 payments (Jan, Apr, Jul, Oct)
$200-$399 delivered in 2 payments (Jan, Jul)
$100-$199 delivered in 1 payment (Jan)

Small business tax relief

To help businesses adjust to the carbon levy, Alberta’s small business corporate income tax rate will be reduced by one third, from 3% to 2%. The cut takes effect on Jan 1, 2017.

Exemptions
Some exemptions will apply, including the following:
the use of heating fuels on sites subject to the Specified Gas Emitters Regulations (SGER)/performance standards regime
• natural gas produced and consumed on site by conventional oil and gas producers (until Jan 1, 2023)
• industrial exemptions in cases where fuel is used in industrial processes but not combusted
• purchases of fuel on-reserve by eligible First Nations individuals and bands for personal and band use
marked gasoline and diesel used by farmers in farming operations
• biofuels, including biomethane, biodiesel and ethanol
• inter-jurisdictional flights
• fuel sold for export

Large industrial emitters
Large Industrial Emitters will continue to be subject to the SGER framework until the end of 2017, when the province will transition to product and sector-based performance standards. Further details will be available after industry consultations.
The new framework, which is endorsed by energy leaders, is designed to reduce the amount of carbon pollution in every barrel of oil.
Under SGER, facilities that emit 100,000 tonnes or more of greenhouse gas emissions are required to annually reduce their site-specific emissions intensity by 15% (this increases to 20% as of Jan 1, 2017).

There are 4 ways facilities can comply:
• make improvements at their facility to reduce emissions
• use emission performance credits generated at facilities that achieve more than the required reductions
• purchase Alberta-based carbon offset credits
• contribute to Alberta’s Climate Change and Emissions Management Fund (Fund)
Facilities that contribute to the Fund pay $20 for every tonne over their reduction target. The price changes to $30 as of Jan 1, 2017.
On-site combustion in conventional oil and gas will be levied starting Jan 1, 2023 while that sector works to reduce methane under the government’s new Joint Initiative on Methane Reduction and Verification.

Author: Town of Hardisty

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