What is the Climate Action Incentive payment, and how do you get it?

by | Aug 1, 2023 | Finance and Business

Did you know that the Canada Revenue Agency (CRA) makes quarterly Climate Action Incentive payments (CAIP) to many Canadians over the age of 19? The CAIP is a federal program that helps individuals and families with the cost of the government’s pollution pricing. Here’s what you need to know:

Who is eligible?

  1. All residents of participating provinces who are 19 or older are eligible.
  2. If you’re under 19, you can still qualify if you have or had a spouse or common-law partner and/or you are or were a parent who lives with or lived with your child.
  3. You are a resident of Canada for income tax purposes in the month before, and at the beginning of the month in which the CRA makes a payment.
  4. You are a resident of a province where the program is offered on the first day of the payment month. For example, the next payment will be issued October 15, 2023, so if you live in Saskatchewan as of October 1, 2023, and meet the other criteria, you will get the payment.

What do you need to do to receive CAIP?
To get the payment, you must file your tax and benefit return every year. If you’ve filed your taxes, you don’t need to apply for the program. The CRA will automatically determine your eligibility.

You can also use direct deposit to get your payments directly into your bank account.

Participating provinces
Since July 2022, residents of Alberta, Saskatchewan, Manitoba and Ontario have been receiving these tax-free payments.

In July 2023, residents of Newfoundland and Labrador, Nova Scotia and Prince Edward Island received their first payment. Residents of New Brunswick will follow suit and receive their first payment in October 2023.

Payments are issued on a quarterly basis with the next two coming out October 15, 2023 and January 15, 2024.

Some recipients may also be eligible for the rural supplement.

How much will you get?
The base amount of each province is different ranging from $122 for a single person in Ontario to $193 for a single person in Alberta.

Learn more about the program and the individual amounts for each province at canada.ca/cai-payment

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