Interesting question. I didn't realize that the Carbon Rebate was going to non-persons.

 

Canada Carbon Rebate for Small Businesses - Canada.ca

The Canada Carbon Rebate for Small Businesses is a refundable tax credit that returns a portion of the federal fuel charge proceeds directly to eligible corporations across Canada. Learn about eligibility, payments amounts, and distribution dates.

www.canada.ca

 

It is a tax credit that is designed to return a portion of the federal fuel charges so it makes sense to record it as a reduction to the company's fuel expense.