More Canadians may have noticed some extra money in their bank accounts this week as the federal government is sending out its climate action incentive payments (CAIP).
If you’re wondering if you qualify for the CAIP, here’s what you need to know.
How it works and who is eligible
The CAIP is a tax-free amount that’s paid to help Canadians offset the cost of federal pollution pricing.
It used to be a refundable credit claimed annually on personal income tax returns, but since July 2022, it’s been parcelled out as quarterly tax-free payments.
The payment is currently offered to residents in Alberta, Saskatchewan, Manitoba, and Ontario.
Canadians in Newfoundland & Labrador, Nova Scotia, and PEI are now also eligible for the payments, as the fuel charge came into effect in those provinces on July 1, 2023.
Residents in these provinces will receive three quarterly payments (July 2023, October 2023, and January 2024) in the first year and four payments in the years following.
The fuel charge also came into effect in New Brunswick on July 1, 2023. However, residents living in that province will receive a double payment in October 2023 that will also cover July 2023, followed by a single payment in January 2024.
Provinces and territories that have their own pollution pricing systems do not qualify for the government’s CAIP.
BC is one of these provinces. It increased its BC Climate Action Tax Credit in July following a carbon tax increase implemented in spring.
How much will you receive?
On its website, the federal government has outlined projected payments to eligible Canadians as follows:
Alberta:
- $193 – Individual
- $96.50 – Spouse or common-law partner
- $48.25 – Per child under 19
Manitoba:
- $132 – Individual
- $66 – Spouse or common-law partner
- $33 – Per child under 19
Ontario:
- $122 – Individual
- $61 – Spouse or common-law partner
- $30.50 – Per child under 19
Saskatchewan
- $170 – Individual
- $85 – Spouse or common-law partner
- $42.50 – Per child under 19
Newfoundland
- $164 – Individual
- $82- Spouse or common-law partner
- $41 – Per child under 19
Nova Scotia
- $124 – Individual
- $62- Spouse or common-law partner
- $31- Per child under 19
PEI
- $120- Individual
- $60- Spouse or common-law partner
- $30- Per child under 19
Quarterly Climate Action Incentive Payments 2023/ 2024 amounts/Government of Canada
When will you receive the payment?
The federal government says all payments will be issued between July 14 and 21.
It can take up to 10 business days for a payment to arrive by mail. If you get your tax refund by direct deposit, you will also get your CAIP by direct deposit.
If you have a spouse or common-law partner, only one of you is eligible for credit for the family. The credit will be paid to the spouse or common-law partner who first filed their tax return.
The amount will be the same, no matter which one of you receives the credit, notes the federal government.
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