What is the Climate Action Incentive Payment? (2024)

The Climate Action Incentive Payment (CAIP), now known as the Canada Carbon Rebate (CCR), is a tax-free quarterly payment designed to assist eligible individuals and families in offsetting the cost of federal pollution pricing in Canada.

If you live in a province that charges the federal carbon tax (fuel charge) and file your taxes electronically before March 15, 2024, you’ll receive your next carbon tax payment on October 15, 2024.

In this blog post, we will thoroughly explore the Climate Action Incentive Payment, discussing the CAIP payment dates for 2024, as well as who is eligible to receive the carbon tax rebates, how to apply, and how much deposit you can expect to receive.

What is Climate Action Incentive Payment (Now Canada Carbon Rebate)?

The Climate Action Incentive Payment, now known as the Canada Carbon Rebate, is a tax-free payment provided by the federal government to eligible individuals and families in Canada.

The CAI program was designed to help offset expenses from federal pollution pricing on fossil fuels such as natural gas and gasoline.

It is paid out quarterly to eligible residents of Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island, either through direct deposits or by mail via cheque.

Everyone who lives in any of these provinces pays a carbon tax, known as the “fuel charge,” when purchasing gasoline or heating their homes. The CCR payment aims to alleviate the financial burden of this carbon tax and reimburse you for your fuel-related expenditures, hence it’s commonly known as the Carbon Tax Rebate.

To qualify for the carbon tax rebates, you must have filed your income tax returns for the previous year (for instance, 2023 for payments issued in January 2024).

The Canada Carbon Tax Rebate consists of a basic amount and an additional 20% supplement for residents of small and rural communities. However, the specific CAIP payment amount one receives depends on their family situation and the province of residence.

Latest Changes to the Climate Action Incentive Payment (Now Canada Carbon Rebate)

As of June 22, 2024, the Canadian Government increased the CCR rural supplement from 10% to 20% of the base amount and eligibility for the rural supplement will revert to using the 2016 Census data.

This simply means if you didn’t get the CCR rural supplement because the 2021 Census data didn’t list your residence as a census metropolitan area (CMA), this is changing. The CRA is going back to using the 2016 Census data.

So if you were deemed ineligible under the 2021 Census data to receive the rural supplement, but qualify under the 2016 Census data, you can expect to receive the increased supplement and retroactive payments from April and July together in October’s payment.

Climate Action Incentive Payment Dates for 2024

If you’re eligible to receive the Canada CAI deposit, you can expect to receive your payments on the following carbon tax rebate payment dates for 2024:

• April 15, 2024
• July 15, 2024
• October 15, 2024
• January 15, 2025.

However, if the Canada CAI payment dates fall on a weekend or a federal statutory holiday, the payment will be made on the last business day before the 15th.

To receive the next CAIP payment on October 15, 2024, you and your spouse or common-law partner (if applicable), must have your income tax and benefit return filed electronically on or before March 15, 2024.

If your tax returns are processed after this date, your payment will be included in a subsequent payment after your return is assessed. If you usually receive your tax refund by direct deposit, you will also receive your Carbon Tax Rebate by direct deposit.

For more information on how to enrol for direct deposit, visit the Direct Deposit page on the Canada Revenue Agency (CRA) website. If you do not receive your Carbon Tax Rebate on the expected payment date, please wait 10 working days before contacting the CRA.

Who is Eligible for Climate Action Incentive?

To be eligible for the carbon tax rebate, you must:

• Be a resident of Canada in the month before the payment
• Reside in one of the applicable CAIP provinces on the first day of the payment month (Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, and Saskatchewan)
• Be at least 19 years old

However, if you are under 19, you must:

• Have or had a spouse or common-law partner
• Are or were a parent, and live(d) with your child

If you have children, they may qualify to receive the carbon rebate tax if:

• Your child is 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 CCR (or already registered for the Canada Child Benefit (CCB) or GST/HST credit)

If you and your ex-spouse share custody of your child/children, you will each receive 50% of your child’s CAIP amount.

If you are a newcomer to Canada and live in one of the eligible CAIP provinces, you can register for the CAIP by filling out certain tax forms and mailing them to a tax centre.

If you have dependent children:

• Complete the Form RC66 for child benefits and GST/HST credits.
• Complete the Form RC66SCH Status in Canada and Income Information for the Canada Child Benefits Application

However, if you do not have children:

• Complete the RC151 GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada.

Generally, you cannot qualify for the Canada CAI payment if: 

• You’re not considered a resident of Canada for income tax purposes.
• You’re exempt from paying taxes in Canada because you’re an officer or employee of another country (like a diplomat), or you’re a family member or employee of such an individual.
• You’re confined to a prison or similar institution for at least 90 days.
• The intended recipient has passed away

How Much is the Climate Action Incentive for 2024?

How much you receive as your Canada CAI deposit depends on your family situation and your province of residence. Here is a summary of the Carbon tax rebate payment amount in Canada.

The CAI Payment isn’t reduced based on your income. If you and your spouse or common-law partner file your income tax and benefit return, you’ll get the quarterly Canada CAIP deposit in your bank account.

The CAIP payment usually goes to the spouse or common-law partner whose tax return is filed first. But no matter who gets the payment, the amount is the same.

Also, the CAIP payment includes an extra amount called a rural supplement. This is 20% of the base amount and is for people who live in small and rural communities. To get this extra amount, you need to live outside of a big city area called the Census Metropolitan Area (CMA).

If you do live outside a CMA, you must check a box on page 2 of your tax return. If both you and your spouse or common-law partner live outside a CMA, then both of you should check the box.

For more information, visit the “How much you can get page” on the CRA website.

Climate Action Incentive Alberta

If you live in Alberta and qualify for the Carbon Tax Rebate in Alberta, you will receive a base amount of $225 for an individual, $112.50 for a spouse or common-law partner, $56.25 for each child under 19, and $112.50 for the first child in a single parent family.

If you live in rural and small communities, you will also receive a rural supplement of $45 for an individual, $22.50 for a spouse or common-law partner, $11.25 for each child under 19, and $22.50 for the first child in a single-parent family.

Climate Action Incentive Manitoba

If you reside in Manitoba and qualify for the Carbon Tax Rebate in Manitoba, you will receive a base amount of $150 for an individual, $75 for a spouse or common-law partner, $37.50 for each child under 19, and $75 for the first child in a single-parent family.

If you live in rural and small communities, you will also receive a rural supplement of $30 for an individual, $15 for a spouse or common-law partner, $7.50 for each child under 19, and $15 for the first child in a single-parent family.

Climate Action Incentive Ontario

Residents of Ontario who qualify for the Carbon Tax Rebate in Ontario will receive a base amount of $140 for an individual, $70 for a spouse or common-law partner, $35 for each child under 19, and $70 for the first child in a single-parent family.

If you live in rural and small communities, you will also receive a rural supplement of $28 for an individual, $14 for a spouse or common-law partner, $7 for each child under 19, and $14 for the first child in a single-parent family.

Climate Action Incentive Saskatchewan

Canadians who reside in Saskatchewan and qualify for the Carbon Tax Rebate in Saskatchewan will receive a base amount of $188 for an individual, $94 for a spouse or common-law partner, $47 for each child under 19, and $94 for the first child in a single-parent family.

If you live in rural and small communities, you will also receive a rural supplement of $37.60 for an individual, $18.80 for a spouse or common-law partner, $9.40 for each child under 19, and $18.80 for the first child in a single-parent family.

Climate Action Incentive New Brunswick

Canadians who reside in New Brunswick and qualify for the Carbon Tax Rebate in New Brunswick can expect to receive a base amount of $95 for an individual, $47.50 for a spouse or common-law partner, $23.75 for each child under 19, and $47.50 for the first child in a single-parent family.

Those who live in rural and small communities will also receive a rural supplement of $19 for an individual, $9.50 for a spouse or common-law partner, $4.75 for each child under 19, and $9.50 for the first child in a single-parent family.

Climate Action Incentive Nova Scotia

Nova Scotia residents who qualify for the Carbon Tax Rebate in Nova Scotia can expect to receive a base amount of $103 for an individual, $51.50 for a spouse or common-law partner, $25.75 for each child under 19, and $51.50 for the first child in a single-parent family.

Those who live in rural and small communities will also receive a rural supplement of $20.60 for an individual, $10.30 for a spouse or common-law partner, $5.15 for each child under 19, and $10.30 for the first child in a single-parent family.

Climate Action Incentive Prince Edward Island

If you live in PEI and you are eligible to receive the Carbon Tax Rebate in PEI, you can expect to receive a base amount of $110 for an individual, $55 for a spouse or common-law partner, $27.50 for each child under 19, and $55 for the first child in a single-parent family.

The rural supplement for those residing in Prince Edward Island is usually included in the base amounts, as all residents are eligible.

Climate Action Incentive Newfoundland and Labrador

Those who live in Newfoundland and Labrador and qualify for the Carbon Tax Rebate in Newfoundland and Labrador can expect to receive a base amount of $149 for an individual, $74.50 for a spouse or common-law partner, $37.25 for each child under 19, and $74.50 for the first child in a single-parent family.

Those who live in rural and small communities will also receive a rural supplement of $29.80 for an individual, $14.90 for a spouse or common-law partner, $7.45 for each child under 19, and $14.90 for the first child in a single-parent family.

How To Apply for Climate Action Incentive Payment

If you are a Canadian resident, you don’t need to apply to receive the CAIP payments. You simply need to file your income tax and benefit return. When you file your income tax and benefit return, the CRA will send you the CAIP payments you are entitled to.

If you have a spouse or common-law partner, only one spouse or common-law partner will receive the payment for the family. It is usually paid to the spouse or common-law partner who files their tax return first. However, regardless of who receives the payment for the family, the amount will be the same.

Additionally, to apply and claim the rural supplement, tick the box on page 2 of your income tax and benefit return. To continue receiving the Climate Action Incentive Payment, you must file an income tax and benefit return every year even if you have no income to report.

On the other hand, if you are a newcomer to Canada, you must complete Form RC66 for child benefits and GST/HST credits and Form RC66SCH Status in Canada and Income Information for the Canada Child Benefits Application if you have dependent children. 

Otherwise, simply complete the RC151 GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada if you don’t have any children.

What is Canada CAI on my Bank Statement?

If you see a narration on your bank statement with the label “Canada CAI”, it means you qualify and have received the Climate Action Incentive Payment (CAIP), now called Canada Carbon Rebate (CCR).

Different financial institutions may use different labels for this benefit. It may also appear as the “Climate Action Incentive” or “Canada Carbon Rebate”.

When is the Next Climate Action Incentive Payment Date?

If you file your taxes online by March 15, 2024, you’ll receive your next carbon tax payment on October 15, 2024. But if you file after March 15, 2024, you’ll get your next payment later, after your tax return has been reviewed.

Why Didn’t I Get My Climate Action Incentive?

If you haven’t received the Canada CAI deposit, it might be because you’re not eligible. This could be due to several reasons, such as not living in a province that issues the payment or being under the age of 19.

Alternatively, there could be an issue with your tax return. To qualify for the CAIP, you must file your income tax and benefit return for the previous tax year.

If you’ve filed your tax return but still haven’t received your CAIP, or if the amount is incorrect, it might be due to missing information on your return. For instance, to receive the rural supplement, you must have completed a question on page two of your tax return. 

Additionally, make sure your banking details (or mailing address, if you receive paper cheques) are up to date with the CRA.

Final Thoughts on Climate Action Incentive Payment (CAIP)

The Climate Action Incentive Payment (CAIP) is a vital initiative by the federal government of Canada to offset the impact of the pollution pricing system on residents in specific provinces. 

To ensure that you receive this Canada CAI payment, carefully complete your yearly tax return, as your payments will depend on your tax compliance. 

If you are not in a province eligible for the CAIP, rest assured that there are various government benefits available to support Canadians during this period of heightened inflation. Stay informed, stay compliant, and make the most of the assistance available to navigate these challenging times.