Small- and medium-sized businesses are set to receive billions of dollars in carbon price rebates long promised by the Liberal government.

The federal budget says five years of rebates worth $2.5 billion will be sent out as the Liberals continue to stand by their carbon pricing system despite political pressure.

More than 600,000 businesses can expect to receive the money as a refundable tax credit later this year as long as their 2023 tax return is filed by mid-July.

Ottawa has battled with banks for years over how the consumer carbon rebate is labelled when it91ÂãÁÄÊÓƵ™s deposited into Canadians91ÂãÁÄÊÓƵ™ bank accounts.

The Liberal budget proposes to change the law so the government can require financial institutions to use specific labels for government payments.

The government is also announcing a tax credit to attract companies investing in Canada91ÂãÁÄÊÓƵ™s electric-vehicle supply chain, along with a national flood insurance program.

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