Climate action incentive payment

If you are looking for Climate action incentive (CAI) credit information claimed on a tax return for the 2018 to 2020 tax years, please visit Tax packages for all years. You will need to select the appropriate year and province, and then look for information related to Schedule 14 - Climate action incentive.

Climate action incentive credit

Prior to 2021, the CAI was a refundable tax credit claimed annually on personal income tax returns.

Climate action incentive payment

The CAI will now be paid as a quarterly benefit. If you are eligible, you will automatically receive your CAI payments four times a year, starting in July 2022.

What is the CAI

The CAI is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba and Ontario. It consists of a basic amount and a 10% supplement for residents of small and rural communities.

The Government of Canada has proposed to change the payment method for the CAI from a refundable credit claimed annually on personal income tax returns to quarterly tax free payments made through the benefit system starting in July 2022.

The information on this page is subject to Parliamentary approval.

Who is eligible for the CAI

To be eligible, you must be a resident of Alberta, Saskatchewan, Manitoba or Ontario on the first day of the payment month and the last day of the previous month. You must also meet at least one of these conditions during the same period:

To get the quarterly payments of the income supplement, you must file an income tax and benefit return. You have to file a return every year to continue to receive the Climate action incentive.

If you have a spouse or common-law partner, complete the information about your spouse or common-law partner in the Identification area on page 1 of your return. Include their net income, even if it is zero, and enter their social insurance number.

The CAI includes a 10% supplement for residents of small and rural communities. To claim the rural supplement you must reside outside of a census metropolitan area (CMA). If you live in a rural area, you also have to complete Schedule 14 and attach it to you income tax and benefit return for 2021.

Find out if you qualify for the supplement for residents of small and rural communities.

If you are eligible for the rural supplement but forgot to apply for it when you filed your 2021 income tax and benefit return, simply complete schedule 14  and mail the completed form to your tax centre.

Do you have an eligible child

You have an eligible child if all the following conditions are met at the beginning of the payment month:

If you and your ex-spouse share custody of your child/children, if entitled, you will receive payments equal to 50% of the amount you would have received if the child resided with you full-time.

Are you a newcomer to Canada

If you are a new resident of Canada, follow the steps below to apply for the CAI credit:

Do you need to apply for the CAI

You don’t need to apply to receive CAI payments.The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return and will send you payments if you’re entitled to them.

If you have already registered your eligible child or children for the Canada child benefit, your child is already registered for the Climate action incentive

If you have not registered your eligible child for the Canada child benefit, go to Canada child benefit - How to apply.

In order to continue receiving your CAI payments, you and your spouse or common-law partner, if applicable, must continue to file an income tax and benefit return every year.

How much you could get

The amount you receive depends on your family situation and the province you reside in.

If you would like an estimate of what your payment might be, see Child and family benefits calculator.

The CRA does not charge or give interest on any CAI overpayments or underpayments.

When will you get your payments

If you’re entitled to receive CAI payments, you can expect to receive them on the 15th of April, July, October and January.

Once your 2021 Income Tax and Benefit return is processed and if you are eligible, the first payment will be issued on July 15, 2022 and will include a retroactive amount for April 2022.

If you get your tax refund by direct deposit, you will also get your Climate action incentive payment by direct deposit. For more information and ways to enroll for direct deposit, go to our Direct deposit web page.

If you have a tax debt with the CRA, the CAI will be applied to amounts owing for income tax balances or amounts owing to other federal or provincial government programs.

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