Climate change has become more apparent nowadays. The more extreme the problem gets, the more it affects different Canadian provinces and their citizens.
The Canadian government has recognized this issue and has implemented programs to help mitigate it.
However, combating climate change is difficult. Because of this, the government had to levy extra taxes and depending on where you live, these taxes can be given back to you through your federal tax returns.
What is the Carbon Tax Rebate/Climate Action Incentive Payment (CAIP)?
The CAIP or Climate Action Incentive Payment is tax-free money given to people and families to help them pay for the federal pollution price.
Residents of Alberta, Manitoba, Ontario, and Saskatchewan can access it. And for residents of small and rural communities, it consists of a basic sum and a supplement.
Beginning in July 2022, the Canadian government has paid the CAI through the benefits system in lieu of a yearly refundable credit that may be claimed on personal income tax returns.
Climate Action Incentive Payment Eligibility
To qualify for the Climate Action Incentive Payment, you must have resided in Alberta, Saskatchewan, Manitoba, or Ontario on both the first day of the payment month and the last day of the previous month.
During the same time frame, you must also fulfill at least one of the following requirements:
- You are at least 19 years old.
- You have (or formerly had) a spouse or common-law partner
- You currently reside (or previously did) with your child and are a parent.
If you have an eligible child
You have an eligible child if all of the following criteria are satisfied at the start of the payment month:
- Your child is younger than the age of 19
- Your family includes a child.
- For the care and raising of your child, you are primarily accountable.
- The Canada Child Benefit is registered for your child.
If you’re eligible for the Canada Child Benefit, the CAIP will be computed with a credit for each qualifying child.
You will be entitled to payments equal to 50% of what you would have received if the child lived with you full-time if you and your ex-spouse share custody of your child(ren) if you are eligible.
If you’re a newcomer to Canada
Follow the procedures listed below to apply for the CAIP if you are a new resident of Canada:
- Fill out one of the forms below:
- For those with children: To apply for all child and family benefits, including the GST/HST credit, complete Form RC66 and Status in Canada and Income Information for the Canada Child Benefits Application. Along with your Statement of Income, Status in Canada, form RC66SCH, and Income Information for the Canada Child Benefits Application to record your citizenship and place of residence.
- For those without children: Complete the Canada Child Benefits Application and Form RC66. You must also complete the following forms: Status in Canada and Income Information for the Canada Child Benefits Application and form RC66SCH to capture your residency citizenship information.
- Send your tax center the completed form through the mail.
Do you have to submit a CAIP application?
You don’t have to apply to be eligible for the CAIP payment. The Canada Revenue Agency or CRA will assess your eligibility once you file your income tax and benefit return and, if you are eligible, give you payments.
If you have a common-law partner or spouse, only one of you is eligible to receive credit for the family. The spouse or common-law partner whose tax return is assessed first will receive the credit. It doesn’t matter which of you gets the credit; the sum is the same.
You and your spouse or common-law partner must submit an income tax and benefit return each year to keep receiving your CAIP payments.
Does Everyone Get the Carbon Tax Rebate?
The federal rebate is now available to residents of Ontario, Manitoba, Saskatchewan, and Alberta. The reimbursement amounts will change by province and family size over time.
In Ontario, for instance, the base amount for families with four members is $745 (this amount is claimed through income tax returns).
Just make sure to complete your tax return, and the Canada Revenue Agency (CRA) will evaluate your eligibility without you having to apply for the CAI payment.
Additionally, you may be qualified for a 10% base supplement if you live in a rural or small municipality.
Along with small and medium-sized businesses, universities, schools, towns, non-governmental organizations, and indigenous communities will all receive a portion of the federal tax revenue.
Climate Action Incentive Payment Dates
- January 15, 2024
- April 15, 2024
- July 15, 2024
- October 15, 2024
Climate action incentive payment dates depend on where you reside. As these Canadian provinces are included in the federal pollution price, residents of Alberta, Manitoba, Ontario, and Saskatchewan will get four equal quarterly payments in January, April, July, and October 2024.
Residents of Newfoundland and Labrador, Nova Scotia, and Prince Edward Island are entitled to three equal quarterly payments (July 2023, October 2023, and January 2024) in the fiscal year 2023 to 2024 and four payments the following year.
These three Atlantic provinces follow different payment dates, as the federal fuel charge will only be in effect in these provinces as of July 1, 2023.
How Much Will You Receive From the CAIP?
The amount you’ll receive varies, depending on which province you reside in and your family situation. But regardless of these factors, the payment for the CAIP is universal and isn’t subject to a benefit reduction based on the recipient’s family net income.
Ontario Carbon Tax Rebates
For a family of four, Ontario’s carbon tax rebate is $976. For a single adult or the first adult in a couple, that comes out to $488, and the second adult receives $244. Each child is qualified for $122. A single parent is entitled to $244 for their first child.
Manitoba Carbon Tax Rebates
The Made-in-Manitoba Climate and Green Plan, which the province sought to execute at the cost of $25 per tonne of carbon, fell short of Ottawa’s requirements. Therefore, the federal system was put into place.
Manitoba families with four children could receive $1,056 in carbon tax refunds this year. The first adult receives $528, the spouse receives $264, and each child receives $132. The first child of a single parent is eligible for $264.
Saskatchewan Carbon Tax Rebates
The carbon tax in Saskatchewan is $50 per tonne, with subsidies for families of four topping out at $1,360 and for individuals at $680. A single parent is entitled to $340 for their first child, and children under 19 receive $193.
Alberta Carbon Tax Rebates
A family with four members would receive a rebate of $1,544 per year under the province’s current carbon pricing of $50 per tonne. For a single adult, that comes to $772; for a second adult, it’s $386; and for each child, it’s $193. The first child of a single parent can receive $386.
New Brunswick Carbon Tax Rebates
To comply with federal regulations, New Brunswick increased its carbon tax to $50 per tonne. Rather than giving out rebates, the money collected will be “recycled” back into the provincial economy. Like other provinces, local drivers should anticipate an increase in gas prices of 11 cents per litre.
Nova Scotia Carbon Tax Rebates
The annual credit amounts in Nova Scotia are $496 for an individual, $248 for a spouse or common-law partner, $124 for each child under the age of 19, and $992 for a family of four.
Newfound and Labrador Carbon Tax Rebates
The annual credit amounts for residents of Newfoundland and Labrador are $656 for an individual, $328 for a spouse or common-law partner, $164 for each kid under the age of 19, and $1,312 for a family of four.
Prince Edward Island Carbon Tax Rebates
In Prince Edward Island, the annual credit amounts are $480 for an individual, $240 for a spouse or common-law partner, $120 for each child under the age of 19, and $960 for a family of four.
Summary
| Ontario | Manitoba | Saskatchewan | Alberta | Nova Scotia | Newfound and Labrador | Prince Edward Island | |
| Family of four | $976 | $1,056 | $1,360 | $1,544 | $992 | $1,312 | $960 |
| Per individual | $488 | $528 | $680 | $772 | $496 | $656 | $480 |
| Spouse or common-law partner | $244 | $264 | $340 | $386 | $248 | $328 | $240 |
| Per child under 19 | $122 | $132 | $193 | $193 | $124 | $164 | $120 |
| First child in a single-parent family | $244 | $264 | $340 | $386 | N/A | N/A | N/A |
Knowledge is Power
Overall, where you live in Canada affects how much carbon tax you pay and whether you are eligible for a tax credit. Use this article as your guide to learn about your responsibilities as a Canadian citizen.
FAQs
When is the carbon tax rebate paid in Alberta?
If you’re entitled to receive the CAIP, you can expect to receive them on the 15th day of April 2023, July 2023, October 2023, and January 2024.
Does everyone in Ontario get the Climate Action Incentive Payment?
Yes, as long as you file a tax return.
Can both husband and wife claim the Climate Action Incentive?
No, only one can get the credit for the family.
Is the Canadian government giving $500 to everyone?
You may be eligible to receive $500 from the Canadian government if you qualify for the Canada Housing Benefit. The one-time top-up aims to help low-income renters cover the cost of renting.
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