Many Canadians may have noticed some extra money in their bank accounts this week as the federal government sent out climate action payments (CAIP).
If you’re wondering if you qualify for CAIP, here’s what you need to know.
How it works and who is eligible
CAIP is a tax-free amount paid to help Canadians offset the cost of federal pollution pricing.
It used to be a refundable credit claimed annually on personal income tax returns, but from July 2022, it is split as a quarterly tax-free payment.
The payment is currently offered to residents of Alberta, Saskatchewan, Manitoba, and Ontario.
Canadians in Newfoundland & Labrador, Nova Scotia, and PEI are also eligible for the rebates, as fuel surcharges begin in those provinces on July 1, 2023.
Residents of these provinces will receive three quarterly payments (July 2023, October 2023, and January 2024) in the first year and four payments in subsequent years.
The fuel surcharge also began in New Brunswick on July 1, 2023. However, residents living in that province will receive a double charge in October 2023 that will also cover July 2023, followed by a charge in January 2024.
Provinces and territories that have their own pollution pricing system are not eligible for the government’s CAIP.
BC is one of the provinces. It increased the BC Climate Action Tax Credit in July following a carbon tax increase implemented in the spring.
How much will you receive?
On its website, the federal government outlines the planned payments to eligible Canadians as follows:
Alberta:
- $193 – Individual
- $96.50 – Spouse or common-law partner
- $48.25 – Each child under 19
Manitoba:
- $132 – Individual
- $66 – Spouse or common-law partner
- $33 – Each child under 19
Ontario:
- $122 – Individual
- $61 – Spouse or common-law partner
- $30.50 – Each child under 19 years old
Saskatchewan
- $170 – Individual
- $85 – Spouse or common-law partner
- $42.50 – Each child under 19
Newfoundland
- $164 – Individual
- $82- Spouse or common-law partner
- $41 – Each child under 19 years old
Nova Scotia
- $124 – Individual
- $62- Spouse or common-law partner
- $31- Per child under 19
P.E.I
- $120- Individual
- $60- Spouse or common-law partner
- $30- Per child under 19
When will you receive payment?
The federal government says all payments will be issued between July 14 and 21.
It may take up to 10 business days for payment to arrive in the mail. If you get your tax refund by direct deposit, you’ll also get your CAIP by direct deposit.
If you have a spouse or common-law partner, only one of you is eligible for the family credit. The credit will be paid to the spouse or common-law partner who first files their tax return.
The amount is the same, regardless of whether you receive the credit, says the federal government.