A "Carbon Rebate" May Be Coming Your Way

Payments for climate action incentives will be made between July 14 and July 21. It can take a payment up to 10 business days to arrive by mail.





You and your spouse or common-law partner (if applicable) must have submitted your income tax and benefit returns on or by March 10, 2023, in order to receive your payment on April 14, 2023. Your contribution will be incorporated into a subsequent payment if your tax returns are submitted after this date.

In order to alleviate taxpayer debt, the CRA has restarted its operations. Payment of unpaid bills may be done via tax returns, benefit payments, and credit payments. By entering into your CRA My Account, you can find out the current status of your benefits. If paying off your debt puts you in financial difficulty, get in touch with the CRA. For debt related to benefits or tax returns, dial 1-888-863-8657 or 1-888-863-8662. Visit Canada.ca/balance-owing to learn more.

Visit Tax packages for all years if you're seeking for information about the Climate Action Incentive (CAI) Credit claimed on a tax return for the 2018 to 2020 tax years. To find information about Schedule 14 - Climate action incentive, you must first choose the correct year and province.

Climate action incentive credit


Before 2021, the CAI may be claimed annually on personal income tax returns as a refundable tax credit.

OR

Climate action incentive payment (CAIP)


A quarterly benefit will now be given for the CAIP. Beginning in July 2022, if you are eligible, you will automatically receive your CAIP four times a year.

What is the CAIP?


The CAIP is money that is given to people and families tax-free in order to help them pay for the federal pollution price. Residents of Alberta, Saskatchewan, Manitoba, and Ontario may use it. For citizens of small and rural communities, it consists of a basic sum plus a supplement.

Beginning in July 2022, the Canadian government will pay the CAI through the benefit system in lieu of a yearly refundable credit that may be claimed on personal income tax returns.

The only provinces that will be subject to the federal fuel surcharge are Newfoundland and Labrador, Nova Scotia, and Prince Edward Island as of July 1, 2023. Three quarterly payments will be made to residents of these provinces in the first year (July 2023, October 2023, and January 2024) and four payments in the following year or years.

Beginning on July 1, 2023, the Canadian government will impose the federal backstop fuel price in New Brunswick. Residents of New Brunswick will get two payments—one in January 2024 and two in October 2023, covering the benefits for July and October 2023.

Are you eligible for the CAIP?


If you are a Canadian resident for income tax purposes at the start of the month in which the CRA makes a payment, you are eligible for this credit. Additionally, on the first day of the payment month, you must reside in one of the qualifying CAIP provinces to be eligible.

You must be 19 or older in the month prior to the CRA's quarterly payment. If you are younger than 19, you must fulfil at least one of the following requirements during that time:

  • Have (or previously had) a spouse or common-law partner
  • Are (or previously were) a parent and live (or previously lived) with your child

Is your child eligible?


If all of the following criteria are satisfied at the start of the payment month, you have an eligible child:

  • your child is under 19 years of age
  • your child lives with you
  • you are primarily responsible for the care and upbringing of your child
  • your child is registered for the Canada child benefit

If you qualify for the Canada kid Benefit, the CAIP will be computed with a credit for each qualifying kid.

Go to Canada Child Benefit - How to Apply if you haven't registered your child for the benefit yet.

You will receive payments that are equal to 50% of what you would have received if the child lived with you full-time if you and your ex-spouse share custody of your child(ren), if you are eligible.

If you are a newcomer to Canada:


Follow the procedures listed below to apply for the CAIP if you are a new resident of Canada:
Complete one of the following forms:
  • If you have children: fill out and sign Form RC66, Canada Child Benefits Application to apply for all child and family benefits, including the GST/HST credit. You must also complete form RC66SCH, Status in Canada and Income Information for the Canada Child Benefits Application to capture your citizenship and residency information, along with your Statement of Income.
  • If you do not have children: fill out and sign Form RC151, GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada.
  • Mail the completed form to your tax centre.

Do you need to apply for the CAIP rebate?


To be eligible for the CAIP payment, you don't have to apply. When you file your income tax and benefit return, the Canada Revenue Agency (CRA) will assess your eligibility and, if you are eligible, give you payments.

Only one of you, if you are married or have a common-law partner, is eligible to receive credit for the family. The spouse or common-law partner whose tax return is filed first will receive the credit. It doesn't matter which of you gets the credit; the sum is the same.

You and your spouse or common-law partner, if applicable, must continue to submit an annual income tax and benefit return in order for you to continue receiving payments from the CAIP.

A supplement to the CAIP is provided for citizens of small and rural areas. You must answer the question on page 2 of your income tax and benefit return in order to claim the rural supplement.

How much will you receive in your rebate?


Your family's circumstances and the province you live in determine how much you receive. Because the CAIP payment would be universal, there won't be a benefit cap based on a family's adjusted net income.

Please click the province of residence to get the computation sheets.

For the 2022 base year:

The Ontario program provides an annual credit of :

$488 for an individual
$244 for a spouse or common-law partner
$122 per child under 19
$244 for the first child in a single-parent family

The Manitoba program provides an annual credit of:

$528 for an individual
$264 for a spouse or common-law partner
$132 per child under 19
$264 for the first child in a single-parent family

The Saskatchewan program provides an annual credit of:

$680 for an individual
$340 for a spouse or common-law partner
$170 per child under 19
$340 for the first child in a single-parent family

The Alberta program provides an annual credit of:

$772 for an individual
$386 for a spouse or common-law partner
$193 per child under 19
$386 for the first child in a single-parent family
The CAIP includes a rural supplement of 10 per cent of the base amount for residents of small and rural communities.

The CRA does not charge or give interest on any CAIP overpayments or underpayments.

Starting in July 2023:

The Newfoundland and Labrador program provides a quarterly credit of:

$164 for an individual
$82 for a spouse or common-law partner
$41 per child under 19
$82 for the first child in a single-parent family

The Nova Scotia program provides a quarterly credit of:

$124 for an individual
$62 for a spouse or common-law partner
$31 per child under 19
$62 for the first child in a single-parent family

The *Prince Edward Island program provides a quarterly credit of:

$120 for an individual
$60 for a spouse or common-law partner
$30 per child under 19
$60 for the first child in a single-parent family

The **New Brunswick program provides a quarterly credit of:

$92 for an individual
$46 for a spouse or common-law partner
$23 per child under 19
$46 for the first child in a single-parent family
* The amount for PEI includes the 10 per cent rural supplement, as all residents are eligible.

** The payment for New Brunswick in October 2023 is a double payment covering the months of October to December 2023 and July to September 2023. A retroactive payment will be made for the 2022 base year after the 2022 rural supplement question for inhabitants of small and rural communities appears on the 2023 income tax and benefit return.

The 10% rural extra, which is not represented above for Newfoundland and Labrador and Nova Scotia, will also be given to rural citizens in other provinces.

When will you get paid?


If you are eligible, you can anticipate getting the CAIP on the 15th of April, July, October, and January.

source: https://www.canada.ca/en/revenue-agency/services/child-family-benefits/cai-payment.html


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