The Alberta carbon levy creates a financial incentive for homeowners to reduce their carbon emissions caused by the use of diesel, gasoline, natural gas, and propane. In return, the revenue generated from the carbon levy will be reinvested into Alberta to provide economic growth and diversity, while reducing Alberta’s contribution to carbon pollution.
As part of the Climate Leadership Plan, the Alberta carbon levy will help to raise an estimated $9.6 billion over the course of 5 years. From this revenue, $2.3 billion will be given back to Albertans in the form of carbon levy rebates. While the remaining revenue will be used to help diversify Alberta’s energy industry by investing in the renewable energy, bioenergy, and energy efficiency industries. Small businesses will also profit from the revenue generated from the carbon levy, as $865 million of the revenue provides a one-third tax cut from the small business tax rate.
Although it is important to understand the carbon levy and the destination of the revenue it generates, it is also important to understand how the carbon levy will affect homeowners.
Let’s take a look at what homeowners can expect from the carbon levy:
The table below shows the estimated increased cost of carbon-emitting fuels annually per household, according to the Alberta Treasury Board:
|Household Size||Total Levy Cost in 2017||Total Levy Cost in 2018|
|Family of Four||$338||$508|
Although many of the products that Albertans purchase are imported from outside of the province, higher prices on goods and services are expected from businesses within Alberta affected by the carbon levy.
Here are the estimated ranges for the increased prices of indirect goods and services:
Thankfully, 60% of Alberta households will be eligible to receive a full rebate by meeting the income criteria when filing their tax returns; couples and families that earn $95,000 or less per year and single Albertans who earn $47,500 or less per year, will meet the income criteria.
The table below compares the annual carbon levy costs and rebate amounts for 2017 and 2018:
|Household Size||Total Levy Cost in 2017||Total Levy Cost in 2018||Full Rebate for 2017||Full Rebate for 2018|
|Family of Four||$338||$508||$360||$540|
Although homeowners are facing increased costs in fuel and indirect goods and services, there are still ways that they can save money by making sure their heating equipment is running as efficiently as possible. Contact Acclaimed Heating, Cooling, and Furnace Cleaning if you are in the Edmonton and surrounding areas and would like more information on our energy-efficient products.
Stay tuned for part 2 and part 3 this week as we bring you more information on this topic!
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