The federal government is now sending some Albertans the first climate action incentive payments.
Under the federal pollution pricing system, the government puts a price on pollution in regions that do not have their own pricing system, which includes Alberta, Saskatchewan, Manitoba, and Ontario.
Prior to 2021, the federal Climate Action Incentive (CAI) was a refundable tax credit claimed annually on personal income tax returns.
This year it’s switched to quarterly installments, with the first payment being issued on July 15, 2022, and will include a retroactive amount for April 2022.
So, let’s see how much extra cash some Albertans may be getting this month:
The Alberta program provides an annual credit of:
- $539 for an individual
- $270 for a spouse or common-law partner
- $135 per child under 19
- $270 for the first child in a single-parent family
Additionally, families in rural and small communities are eligible to receive an extra 10%.
To be eligible, you must be a resident of Alberta, Saskatchewan, Manitoba, or Ontario on the first day of the payment month and the last day of the previous month. You must also meet at least one of these conditions during the same period:
- You are 19 years of age or older
- You have (or previously had) a spouse or common-law partner
- You are (or previously were) a parent and live (or previously lived) with your child
More details on individual and family payment amounts for 2022-23 are specified here.
If you get your tax refund by direct deposit, you will also get your CAIP by direct deposit. If you have a tax debt with the CRA, the CAIP will be applied to amounts owing for income tax balances or amounts owing to other federal or provincial government programs.
If you do not receive your CAIP on the expected payment date, please wait 10 working days before contacting the Canada Revenue Agency.