As we look ahead to a new year, many Canadians anticipate the upcoming Climate Action Incentive Payment dates for 2024. The Climate Action Incentive Payments (CAIP) are no doubt a timely initiative. This benefit manifests in its crucial position in reducing the effects of climate change. At the same time, the program has contributed significantly to economic growth. But as you await the 2024 payment dates, it’s important to understand that not all Canadian residents are eligible for the CAIP.

Learn more about the Climate Action Incentive Payment in this article. Of course, we’ve included the Climate Action Incentive Payment dates for 2024 to satisfy your curiosity, as well as some other helpful details.

What Is Climate Action Incentive Payment (CAIP)?

The Climate Action Incentive Payment (CAIP) is a tax-free benefit to help offset the cost of federal pollution pricing. It includes a 10% supplement for residents of small and rural communities.

Currently, the CAIP is available to residents of Alberta, Manitoba, Ontario, and Saskatchewan. However, starting July 2023, the payments will be available in more provinces. This expansion includes Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. Furthermore, New Brunswick was recently added, but the first payment won’t be paid until April 2024. The first payment will include a retroactive adjustment from July 2023 to January 2024.

Before CAIP, the incentive was in the form of a tax credit known as the Climate Action Incentive Credit (CAIC). The amount was calculated during tax filing procedures and combined with the annual tax liability or refund amount. Since July 2022, the program has been renamed Climate Action Incentive Payment (CAIP). Payments are now made quarterly in January, April, July, and October.

Canadians don’t need to apply for the CAIP. Once you file your tax return, the Canada Revenue Agency (CRA) will automatically assess and notify you about your eligibility. There’s your incentive to file your tax return this year!

What’s the purpose of the Climate Action Incentive Payment?

Pricing systems were introduced to reduce carbon pollution and combat climate change. The tax intended to discourage excessive spending on fuel by raising prices. Rather than receiving a separate bill, these costs were added to heating bills and fuel surcharges. The revenue collected through the federal fuel charge system is returned to residents. This revenue and redistribution process is the Climate Action Incentive Payment.

The CAIP was created to provide Canadians with extra funds to ease the burden of higher taxation and pricing. The program benefits eight out of ten households, with some receiving more than they spent on the fuel charge.

Farmers can access incentives and rebates, while rural or remote Canadians may qualify for a bonus payment as well. While you look out for the Climate Action Incentive Payment dates for 2024, you should find out the payment for your location.

Related Reading: What is the Home Buyers’ Plan?

How Much Is the Climate Action Incentive for 2024?

The Climate Action Incentive payment (CAIP) varies by province of residence. If you live in a rural area, there is an additional 10% supplement on the base amounts. The CAIP is calculated based on the preceding tax year. For instance, the 2023 payments were based on your 2022 tax return. In 2024, payments will be based on your 2023 tax return.

How Much is the Climate Action Incentive for 2024 in Ontario?

Below is a table summarizing the quarterly CAIP amounts for eligible residents of Ontario:

Individuals	$122
Spouse or Common-law Partner	$61
Per Child (under 19)	$30.50
Family of Four	$244
Payment Dates	April 2024, July 2024, October 2024, and January 2025

How Much is the Climate Action Incentive for 2024 in Alberta?

Below is a table summarizing the quarterly CAIP amounts for eligible residents of Alberta:

Individuals	$193
Spouse or Common-law Partner	$96.50
Per Child (under 19)	$48.25
Family of Four	$386
Payment Dates	April 2024, July 2024, October 2024, and January 2025

Related Reading: What is My RRSP Contribution Limit?

How Much is the Climate Action Incentive for 2024 in Manitoba?

Below is a table summarizing the quarterly CAIP amounts for eligible residents of Manitoba:

Individuals	$112
Spouse or Common-law Partner	$61
Per Child (under 19)	$30.50
Family of Four	$244
Payment Dates	April 2024, July 2024, October 2024, and January 2025

How Much is the Climate Action Incentive for 2024 in Saskatchewan?

Below is a table summarizing the quarterly CAIP amounts for eligible residents of Saskatchewan:

Individuals	$170
Spouse or Common-law Partner	$85
Per Child (under 19)	$42.50
Family of Four	$340
Payment Dates	April 2024, July 2024, October 2024, and January 2025

It’s important to note the CAIP payment amounts have been revised in Alberta, Ontario, Manitoba, and Saskatchewan. This is to address any over or under-distributions of funds from previous years. This change aligns with the government’s promise to address any variances. It includes the funds collected and returned to the jurisdiction through payment changes.

Other Provinces and Territories

Newfoundland and Labrador, Nova Scotia, and Prince Edward Island (PEI) will be added to the Climate Action Incentive Payments this year. In addition, New Brunswick was added to the list, but the first payment won’t be made until January 2024. The initial payment will include a retroactive adjustment from July 2023. Other provinces and territories have not been added yet. The program provides benefits to residents in these provinces. Plus, it provides payments only to those who meet the eligibility requirements.

Below is a table summarizing the Quarterly CAIP amounts for the newly added provinces:

	Newfoundland and Labrador	Nova Scotia	Prince Edward Island	New Brunswick
Individual	$164	$124	$120	$92
Spouse or Common-law Partner	$82	$62	$60	$46
Per Child (under 19)	$41	$31	$30	$23
First Child in a Single-Parent Family	$82	$62	$60	$46

The payment dates for these three provinces are April 2024, July 2024, October 2024, and January 2025. Also, the 10% supplement for rural communities will only be available in PEI and New Brunswick, not Nova Scotia and Newfoundland and Labrador.

Related Reading: CPP and Retirement Planning: How Much Will I Get?

Do Both Spouses Get the Climate Action Incentive?

According to the Canada Revenue Agency (CRA), when claiming the CAIP as a family, only one spouse or common-law partner can receive it. The payment will go to the partner who files their tax return first. The amount will be the same regardless of who receives the payment.

Filing an income tax and benefit return each year is necessary to continue receiving CAIP payments. This applies if you have a spouse or common-law partner too.

When Should You Expect the Climate Action Incentive?

While recipients are adjusting to the new quarterly payments, they can expect them on the 15th of the dispersal month. The Climate Action Incentive Payment for 2024 will be paid out in April 2024, July 2024, and October 2024. Then January 2025 as we head into the new tax year.

Residents in Alberta, Manitoba, Ontario, Saskatchewan, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island will get four equal quarterly payments. It is scheduled to begin on the 15th of April 2024 for the new year, as they are already subject to the federal price on pollution. New Brunswick will receive their first payment in April 2024 too, but this will be the first payment ever, including a retroactive adjustment for July 2023 to January 2024.

PEI residents and eligible people in other provinces will receive the 10% rural supplement. To receive it, you need to answer the question on the second page of your income tax and benefit return. The question is regarding your address.

If you receive your tax refunds through direct deposit, you will also receive your CAIP payment through the same payment method. In case you don’t receive your CAIP on the scheduled payment date, wait 10 business days. Sometimes processing takes a little extra time. But after that, you can reach out to the Canada Revenue Agency (CRA).

Related Reading: CPP vs OAS: What are the differences?

Eligibility Criteria

The CAIP payment does not have an application process. Rather, the Canada Revenue Agency (CRA) will assess your eligibility based on your filed income tax and benefit return. If you meet the requirements, the CRA will automatically send you payments for the benefit via cheque or direct deposit. To qualify, you must live in either Manitoba, Saskatchewan, Alberta, Ontario, Newfoundland and Labrador, Nova Scotia, New Brunswick, and Prince Edward Island at the start of the month in which CRA makes payment.

In the preceding month of a quarterly payment, you must also satisfy at least one of the following criteria during the same period:

• Individuals must be 19 years or older to be eligible.
• Individuals must have had or currently have a spouse or common-law partner.
• Individuals must be a parent and have lived or currently live with their child.

If you do not meet the above requirements at the beginning of the month when quarterly payment is made, then you may not be eligible for the CAIP. In addition, these criteria should be considered:

• Non-residents of Canada for income tax purposes are not eligible.
• Individuals who have been detained in a correctional or comparable facility for 90 continuous days or more are not eligible.

If you owe taxes or other debts to the federal government, the owed amount will be taken out from your CAI Payment. The payments will resume once the debt has been fully paid.

For Children

The CAIP can be received for each of your children if certain criteria are met at the beginning of the month in which a payment is made. The child in question must:

• Be under 19 years old.
• Live with you.
• Be your child or be dependent on you or your spouse/common-law partner for support, and
• Has never been married or lived with a child they parented.

Additionally, if you qualify for the benefit as a child in Canada, a credit for each eligible child will be factored into the CAIP calculation.

The Benefits of Climate Action Incentives for Canadians in 2024 and Beyond

The Climate Action Incentive Payment, since its introduction, has helped many Canadians save good sums on fuel charges. In addition, more people are consciously contributing to green solutions. It’s a great move! 

Proposed affordability measures have been introduced along with the quarterly CAI payment. It is to ease the burden of the increasing cost of living for Canadians. The CAI payment offers relief to individuals struggling to make ends meet by providing financial support. By doing so, it tackles inflation and improves the living standards of millions of Canadians.

As for the Climate Action Incentive Payment dates for 2024, it’s easy to determine. Since the CAIP is a quarterly payment, expect the next payment in mid-April 2024. If you are a resident of eligible provinces and territories, you should act fast. File your returns to determine eligibility for the payment. Furthermore, ensure to file on time to receive the benefit through direct deposit.

Read More: Does everyone get the climate action incentive payment?