Canada's Climate Action Incentive Payment Is Being Expanded & Here's Who Is Getting Money

What is the climate action incentive payment?

The CAIP is a tax-free amount paid to people in Canada to help both individuals and families offset the cost of federal pollution pricing.

While the incentive payment used to be a refundable credit that could be claimed annually on personal income tax returns, it has been available as a quarterly tax-free payment administered by the Canada Revenue Agency (CRA) since 2022.

Which provinces get the climate action incentive payment?

The CAIP is available to residents in Ontario, Alberta, Saskatchewan, and Manitoba.

As of July 1, 2023, the incentive will also be expanded to include residents of Nova Scotia, P.E.I., Newfoundland and Labrador, and New Brunswick.

It is not available in B.C., Quebec, Yukon, the Northwest Territories or Nunavut.

What is the climate action incentive payment eligibility?

You have CAIP eligibility if you're a resident of Canada for income tax purposes at the beginning of the month in which the CRA makes a payment.

Also, you must be a resident of a province where the CAIP is available on the first day of the payment month.

In the month before the CRA makes a quarterly payment, you need to be at least 19 years old.

If you are under 19 years old, you must either have (or previously had) a spouse or common-law partner, are (or previously were) a parent, or live (or previously lived) with your child.

There is additional money available for people who have children.

You have an "eligible child" if you meet all of the following conditions at the beginning of the payment month:

• your child is younger than 19 years old
• your child lives with you
• you are primarily responsible for the care and upbringing of your child
• your child is registered for the Canada Child Benefit

You don't need to apply to receive money for the CAIP because the CRA will determine your eligibility when you file your income tax and benefit return.

However, if you're a newcomer to Canada, you will have to apply for the CAIP to get money.

There are forms that need to be filled out if you have children or don't have children and then mailed to your local tax centre

How much money is given out with the climate action incentive payment?

For this incentive, how much money you can get with the CAIP depends on where you live and your family situation.

In Ontario, there is an annual credit of $488 for an individual, $244 for a spouse or common-law partner, $122 per child under 19, and $244 for the first child in a single-parent family.

Manitoba's program provides an annual credit of $528 for an individual, $264 for a spouse or common-law partner, $132 per child under 19, and $264 for the first child in a single-parent family.

An annual credit of $680 for an individual, $340 for a spouse or common-law partner, $170 per child under 19, and $340 for the first child in a single-parent family is available in Saskatchewan.

Alberta's CAIP program gives an annual credit of $772 for an individual, $386 for a spouse or common-law partner, $193 per child under 19, and $386 for the first child in a single-parent family.

Then, starting in July 2023, this payment will also start going out to residents of Nova Scotia, New Brunswick, P.E.I., and Newfoundland and Labrador.

With the Newfoundland and Labrador program, there is a quarterly credit of $164 for an individual, $82 for a spouse or common-law partner, $41 per child under 19, and $82 for the first child in a single-parent family.

The CAIP in Nova Scotia provides a quarterly credit of $124 for an individual, $62 for a spouse or common-law partner, $31 per child under 19, and $62 for the first child in a single-parent family.

In P.E.I., eligible residents get a quarterly credit of $120 for an individual, $60 for a spouse or common-law partner, $30 per child under 19, and $60 for the first child in a single-parent family.

The amount for that province includes the 10% rural supplement since all residents are eligible for that additional benefit.

The New Brunswick CAIP program offers a quarterly credit of $92 for an individual, $46 for a spouse or common-law partner, $23 per child under 19, and $46 for the first child in a single-parent family.

For the October 2023 payment in that province, a double credit that covers the July to September 2023 and October to December 2023 periods will go out.

People in Newfoundland and Labrador, Nova Scotia, and P.E.I. will receive three quarterly payments — July 2023, October 2023, and January 2024 — and then four payments each year after that.

What are the climate action incentive payment dates?

If you're entitled to receive this credit, there are four climate action incentive payment dates — April 15, July 15, October 15 and January 15 — each year, which is when you can expect to get money.

When that payment date falls on a Saturday, Sunday or a federal statutory holiday, the money will go out on the last business day before the original payment date.

Since July 15 is a Saturday this year, the CAIP will be sent out on Friday, July 14, 2023, instead.

Then, since October 15 is a Sunday, that means the incentive payment will go out early on Friday, October 13, 2023.

After that, the next payment dates are Monday, January 15, 2024, and Monday, April 15, 2024.

If you get your tax refund by direct deposit, you'll also get your CAIP by direct deposit.

With direct deposits, the payments will show up in your bank accounts as "Climate Action Incentive" or something similar because the wording could vary based on your financial institution.

You can sign up to get direct deposits from the CRA through financial institutions, online with CRA's My Account portal, with the CRA app or by phone at 1-800-959-8281.

If you don't have direct deposits set up with the CRA, your CAIP will be sent as a cheque through the mail.