There’s no question that the rising cost of carbon-based fuels is impacting Canadian residents. The Canada Carbon Rebate (formerly called the Canada Climate Action Incentive or CAIP) is a tax-free payment the Canadian government awards to eligible residents in provinces that impose a carbon tax. The goal of the CAIP is to offer financial relief for Canadians in light of the rising cost of carbon fuels.
Keep reading to learn more about CAIP eligibility, how much you can expect to receive, and the CAIP payment dates for 2024.
History of CAIP in Canada
The CAIP was formerly known as the CAI (Climate Action Incentive rebate). It was a refundable tax credit that individuals could claim annually on their taxes to receive a rebate.
In 2021, the CAI became the CAIP and is now distributed to eligible Canadians via quarterly, tax-free payments.
What is CAIP?
The CAIP is colloquially referred to as the carbon tax rebate. It is money that the government pays out to residents of certain Canadian provinces to help offset taxes paid on fuel. The payment is made only to residents of provinces participating in the federal carbon pollution pricing system.
Residents of the following provinces are eligible to receive the CAIP:
- Alberta
- Manitoba
- New Brunswick
- Newfoundland and Labrador
- Nova Scotia
- Ontario
- Prince Edward Island
- Saskatchewan
CAI Payment Amounts
The payment amounts of the CAIP varies depending on an individual’s province of residence, whether they have dependents, and whether they live rurally. There is no payment reduction based on income.
Residents of small and rural communities receive a rural supplement of 10%.
Here’s an overview of how much residents of each province will receive quarterly:
Alberta:
- Individual: $193
- Spouse/Common-law partner: $96.50
- Per child under 19: $48.25
- First child in a single-parent family: $96.50
Manitoba:
- Individual: $132
- Spouse/Common-law partner: $66
- Per child under 19: $33
- First child in a single-parent family: $66
New Brunswick:
- Individual: $92
- Spouse/Common-law partner: $46
- Per child under 19: $23
- First child in a single-parent family: $46
Newfoundland and Labrador:
- Individual: $164
- Spouse/Common-law partner: $82
- Per child under 19: $41
- First child in a single-parent family: $82
Nova Scotia:
- Individual: $124
- Spouse/Common-law partner: $62
- Per child under 19: $31
- First child in a single-parent family: $62
Ontario:
- Individual: $122
- Spouse/Common-law partner: $61
- Per child under 19: $30.50
- First child in a single-parent family: $61
Prince Edward Island:
- Individual: $120
- Spouse/Common-law partner: $60
- Per child under 19: $30
- First child in a single-parent family: $60
Saskatchewan:
- Individual: $170
- Spouse/Common-law partner: $85
- Per child under 19: $42.50
- First child in a single-parent family: $85
The rural supplement in each province is equal to 10% of the base amount of the payment.
CAIP Payment Dates and Schedule
The CAIP is distributed automatically on a quarterly basis. Eligible Canadians will receive payments in April, July, October, and January. Payments are made on the 15th of each month. However, if the 15th falls on a weekend or a federal statutory holiday, payments are sent on the last business day before the 15th.
The payment schedule for 2024 is as follows:
- January 15th
- April 15th
- July 15th
- October 15th
You will receive your payments in the same format that you typically receive your tax refunds. The CAIP will be automatically deposited into your bank account if you're registered for direct deposit. If you’re not, expect to receive a paper cheque in the mail.
Eligibility Requirements
You are eligible to receive Climate Action Incentive Payments as long as you’re a resident of Canada in the month prior to the payment and you were a resident of a CAIP province on the first day of the payment month. So, if a payment is set to be distributed on April 15th, you must be a resident of the province on April 1st.
You must also be at least 19 years old in the month prior to when the Canada Revenue Agency (CRA) makes the payment.
You can also qualify if you are under 19 and meet one of the following conditions in the month before the payment:
- You have or had a spouse or common-law partner
- You are or were a parent, and live(d) with your child
In other words, if a payment is made on April 15th, you must have met the above criteria in March of that year.
Eligible children
Individuals who qualify for the Canada Child Benefit (CCB) will receive a CAIP for each eligible child.
Children must meet the following conditions at the beginning of the payment month to be eligible:
- Be under 19 years of age
- Live with you
- You must be the primary caregiver
- Your child must be registered for the CCB
How to Claim CAI Payment & Deposits
If you’re a resident of Canada, all you need to do to receive your CAIP is file your income tax and benefit returns each tax year. It’s essential to file even if you have no income to report. Otherwise, you will not receive your CAIP.
In the case of individuals with spouses or common-law partners, only one individual can receive the benefit for the family. It will be awarded to whoever files their tax return first. The payment amount will be the same regardless of who receives it.
How to claim payments as a new resident of Canada
New residents of Canada are eligible to receive the CAI payment too, but you need to make the CRA aware of your eligibility by submitting relevant paperwork.
Individuals with children must complete and submit the following forms:
- Form RC66, Canada Child Benefits Application
- Form RC66SCH, Status in Canada and Income Information for the Canada Child Benefits Application
New residents without children must complete and submit the following:
Claiming the CAIP rural supplement
The rural supplement offers an additional 10% of the base payment for individuals and families living in small or rural communities.
To receive the supplement, you must tick the box on page 2 of your income tax return to signal your eligibility.
Note: Residents of Prince Edward Island do not need to claim the rural supplement as it’s included within the base payment for residents of the province.
Conditions when you must contact the CRA
If you were eligible for the rural supplement in previous tax years but did not claim it, you can contact the Canda Revenue Agency at 1-800-387-1193 to apply. Alternatively, tick the box on page 2 of a copy of your income tax return and mail it to your tax centre.
Don’t Miss Out on your CAIP benefit
The Canadian government introduced the Canada Climate Action Incentive Payment (CAIP) as a non-taxable benefit provided to eligible individuals in provinces where a carbon tax is applied. This initiative aims to ease the financial burden for Canadians resulting from increased federal pollution pricing.
Understanding how the CAIP benefit works, whether you’re eligible, and when to expect payment will help you use this non-taxable cash strategically within your budget. If you have any questions about the CAIP, visit the Government of Canada website for more details on the benefit. You can also log into your “My Account” portal to review your benefit history or sign up for direct deposit!
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