If you’re looking for information on Climate Action Incentive (CAI) credits claimed on tax returns for tax years 2018 through 2020, visit Tax Packages for All Years. You will need to select the appropriate year and province, then look up the information in Table 14: Spurring Climate Action.
Climate Action Stimulus Credit
Before 2021, the CAI was a refundable tax credit required annually on individual income tax returns.
Climate Action Incentive Payment (CAIP)
CAIP will now be paid as a quarterly benefit. If you qualify, you will automatically receive CAIP four times a year, starting in July 2022.
What is CAIP?
CAIP is a tax-deductible amount paid to help individuals and families offset the costs incurred by federal pollution fees. It is available to residents of Alberta, Saskatchewan, Manitoba and Ontario. They include a basic amount and an additional amount for residents of small communities and rural communities.
The Government of Canada has proposed changing the way IAC payments are made from a refundable credit claimed annually on individual income tax returns to tax-free quarterly payments made through the Benefits Plan. Benefits as of July 2022. The information on this page is subject to Congress.
Who is eligible for CAIP?
To be eligible, you must be a resident of Alberta, Saskatchewan, Manitoba and Ontario on the first day of the pay month and the last day of the previous month. You must also meet at least one of the following conditions during the same time period:
- You are 19 years old or older.
- have (or have had) a spouse or common-law partner
- You are (or have been) a parent and live with your child
Do you have an eligible child?
You have an eligible child if all of the following conditions are met at the beginning of the pay month:
- Your child must be 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 Canadian child benefit
If you are eligible for the Canada Child Benefit, a credit is included for each eligible child in the CAIP account.
If you and your former spouse share custody of your child, if you qualify, you will receive an amount equal to 50% of what you would have if the child lived with you full time.
Do you need to request the CAIP?
You do not need to apply to receive CAIP payments. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income and benefit tax return and send you payments if you qualify.
If you have a spouse or domestic partner, only one of you can benefit from the family credit. The credit will be paid to the spouse or domestic partner for whom the tax return is pre-selected. It does not matter who will receive the credit, the amount will be the same.
To continue receiving CAIP payments, you and your spouse or domestic partner, if applicable, must continue to file income and income tax returns each year.
The CAIP includes a supplement for residents of small rural communities. To claim the rural supplement, you must complete Schedule 14 and attach it to your income and capital gains taxes.
If you qualify for the rural benefit but forgot to file it when you filed your income and income tax return, simply complete Schedule 14 and mail in the completed form.
How much can you expect to receive?
The amount you receive depends on your family circumstances and the county in which you reside. The CRA does not charge interest on overpayments or underpayments.
When will you receive your payments?
If you qualify for a CAIP, you can get it on April 15, July, October, and January. Once your 2021 income and benefit tax return has been processed and you qualify. Terms, the first payment will be issued on July 15, 2022 and will include an amount effective from April 2022.
If you received your tax refund by direct deposit, you can also get your CAIP by direct deposit. For more information and how to apply for direct deposit, visit the direct deposit website.
If you owe taxes to a CRA, the CAIP will be applied to the amount owed on your income tax balance or to money owed to other federal or provincial government programs.