Implementing Carbon Pricing in the NWT

Impact on Households

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For residents, as well as governments and business entities with less than 50,000 kilotonnes of annual GHG emissions the following offsets for the NWT Carbon Tax will apply:

  • All aviation fuel will be exempt from the NWT Carbon Tax. Exempting aviation fuel will save residents, governments and businesses approximately $6.4 million annually when fully implemented.
  • NWT Carbon Tax for heating fuel will be 100% rebated at the point of purchase. This is expected to provide an offset of $9.5 million annually from the carbon tax for residents, governments and small businesses when the carbon tax is fully implemented.
  • The GNWT will introduce changes to the Income Tax Act to introduce two new tax benefits in order to reduce the impact of the NWT Carbon Tax on the cost of living:
    • A new Cost of Living Offset (COLO). These benefits will increase as the NWT Carbon Tax amounts increase. When fully implemented, the COLO benefit will provide $260 annually for each NWT resident 18 years of age or older, and $300 for each child under 18.
  • The Northwest Territories Power Corporation (NTPC) will be provided with annual rebate for non-motive diesel purchased for producing electricity. This is expected to amount to $3.0 million when the NWT Carbon Tax is fully implemented. Not offsetting this additional cost for NTPC would have meant increased costs for electricity.