The climate action incentive is a new benefit program available to Canadians. It is designed to subsidize the cost of climate change incentives as implemented by the federal government. The payment is sent to Canadians quarterly, usually in the form of direct deposit. Generally speaking, the eligibility criteria of the CAIP payment is quite broad. So does everyone get the climate action incentive payment? Who is eligible and who’s not? Continue reading to find out more!
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What is the climate action incentive payment?
The climate action incentive payment is a tax-free amount paid to individuals and families. The program started as a refundable tax credit in 2021. However, it has since evolved into a quarterly benefit which began in July 2022. The climate action incentive payment helps offset the cost of federal pollution pricing.
At present, the CAIP payment is only available to residents of Alberta, Manitoba, Saskatchewan and Ontario. But starting in July 2023, the CAIP will also become available in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. There are two components to the payment, a basic amount and a supplement for those in small, rural regions.
Even more recently, New Brunswick was added to the list. As a resident of this province, you can expect your first payment on April 2024. This will include a retroactive payment for the July 2023 to January 2024 period, plus the rural supplement for eligible individuals.
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How much is the climate action incentive payment for individuals?
The climate action incentive payment amount varies by province. Below are more details on the amount of the annual credit per single person:
- Ontario > $488 per individual
- Manitoba > $528 per individual
- Saskatchewan > $680 per individual
- Alberta > $772 per individual
Starting July 2023, individuals who are residents of the below provinces will receive a quarterly payment in the following amounts under the climate action incentive program (except for the New Brunswick payment will be paid in April 2024, with a retroactive adjustment from July 2023):
- Newfoundland and Labrador > $164 per individual
- Nova Scotia > $124 per individual
- Prince Edward Island > $120 per individual
- New Brunswick > $92 per individual
If you live in a small, rural community, your payment will be grossed up by 10%. The only exception is Prince Edward Island where the gross up of 10% is already reflected.
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How much is the climate action incentive payment for families?
The amount of your CAIP payment depends on your unique situation. Below is a table with the information about the annual credit for active provinces:
| Annual Amounts | Manitoba | Saskatchewan | Alberta | Ontario |
| Spouse or Common-Law Partner | $264 | $340 | $386 | $244 |
| Child under 19 (for each) | $132 | $170 | $193 | $122 |
| First child in a single-parent family | $264 | $340 | $386 | $244 |
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Beginning July 2023, families in the below provinces will also receive a quarterly payment in the following amounts:
| Quarterly Amounts | Newfoundland and Labrador | Nova Scotia | Prince Edward Island | New Brunswick* |
| Spouse or Common-Law Partner | $82 | $62 | $60 | $46 |
| Child under 19 (for each) | $41 | $31 | $30 | $23 |
| First child in a single-parent family | $82 | $62 | $60 | $46 |
If you live in a small, rural community, your payment will be grossed up by 10%. The only exception is Prince Edward Island where the gross up of 10% is already reflected.
How do you receive the climate action incentive payment?
If you have direct deposit set up with the Canada Revenue Agency or Service Canada already, you will likely receive the payment directly to your bank account. You always have the option to set up direct deposit if you haven’t yet. Alternatively, you will receive a cheque in the mail.
When does climate incentive get paid?
You can expect to receive your climate action incentive payments on the following dates:
- January 15
- April 15
- July 15
- October 15
If the 15th falls on a weekend or statutory holiday, the payment will be made on the business day closely preceding the payment date. The above amounts are expressed either annually or quarterly, but every Canadian gets paid quarterly.
Does everyone get a climate action incentive cheque?
Most people will receive a direct deposit for their climate action incentive payment. However, if you never enrolled in direct deposit, then you will receive a cheque instead.
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Does everyone get the climate action incentive payment?
No, not every Canadian receives the climate action incentive payment. However, the program is expanding and will likely become available in every province and territory.
At present, only residents of Manitoba, Saskatchewan, Ontario, and Alberta are eligible for the payment. In July 2023, residents of Nova Scotia, Newfoundland and Labrador, and Prince Edward Island will also become eligible. Aside from your province or territory of residence, you must also be a resident of Canada for income tax purposes.
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Who doesn’t get the climate action incentive payment?
Residents of British Columbia, Yukon, Nunavut, Northwest Territories, and Quebec are not eligible. At the time of writing, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island are not eligible, but that will change in July 2023. Lastly, New Brunswick is now eligible, the first payment will be made in April 2024, with a retroactive adjustment back to July 2023.
Do both spouses get climate action incentive?
Only one spouse or common-law partner amount is paid per couple. The amount is not paid twice to each partner. For instance, if a married couple resides in Manitoba, the couple would receive $264, not $528.
Can roommates both claim climate action incentive?
Yes, both roommates can claim the climate action incentive. Roommates are two individuals who cohabitate, which means they’re both eligible. Each roommate may be entitled to a larger payment if they also have children, spouses, or common-law partners.
Claiming the climate action inventive payment
The climate action incentive payment isn’t much, but it can help you cover some of your expenses! Fortunately, you do not need to apply for the CAIP payment. The Canada Revenue Agency will determine your eligibility based on your filed personal tax return. Make sure to file your tax return every year so you don’t miss out on the CAIP payment, or other similar benefits.
If you believe you should receive the CAIP payment, but haven’t, reach out to the Canada Revenue Agency to inquire. They likely don’t have your information on file which is why they couldn’t determine your eligibility. Make sure to claim all the benefits you can get!
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