Some Households Can Get Over $1K Via Canada's Climate Action Incentive & Here's How It Works

Some Canadians will be getting more government money throughout the year, as the Climate Action Incentive Payment (CAIP) is shifting to a quarterly basis.

Beginning July 15, Canadian individuals and families living in a few key provinces will start receiving the CAIP — a credit meant to offset carbon pricing — in four payments throughout the year.

The CAIP is a tax-free payment instituted as a way to give money back to provincial residents who might be feeling the effects of federal pollution pricing — a program where polluters have to pay depending on the amount of carbon they release.

The quarterly credit has come in to replace the annual version of the payment, which was previously paid out at tax time.

It's super easy to get the credit if you qualify, as you don't need to apply directly for it.

The Canada Revenue Agency (CRA) determines your eligibility when you file your taxes. No other action is required from the individual.

The exact amount each household is able to receive depends on a number of factors that are determined when your taxes are filed.

The payments are universal and not based on adjusted family net income. However, factors like your family situation and the province you reside in will impact the total amount.

For example, a family of four living in Ontario can expect to receive a total of $745 over the 2022-23 fiscal year, while a Manitoban family will receive $832.

An Albertan family of four will get $1,079 over the course of their four payments during the same period, while a family living in Saskatchewan can expect $1,101.

Those amounts can go up by 10% if you qualify as someone living in a rural or remote area.

The first payment going out this summer is "doubled-up," to return proceeds from the first two quarters of the 2022-23 year. This means you can expect both the April to June and the July to September payments at the same time.

After that, eligible Canadians can expect either direct deposits or cheques to arrive in October 2022 and January 2023.

This isn't the only financial help coming at Canadians these days.

Recently the Liberal government announced an Affordability Plan as a means of easing some financial stress for Canadians.

The plan included an updated Canada Workers Benefit, which could grant single Canadians up to $1,300 from the feds.

It also includes a recently announced one-time payment for anyone who might be struggling to pay their rent in 2022.

This article's cover image was used for illustrative purposes only.