The Canadian government is committed to combating climate change by implementing the Climate Action Incentive Payment (CAIP) program, which aims to return money to eligible families as the price of pollution rises. This initiative is designed to offset the costs associated with federal pollution pricing and is distributed to residents of provinces that use the federal carbon pollution pricing system.
What is Canada CAI Payment & Deposit?
The CAI Payment & Deposit, often referred to as the Carbon Tax Rebate, is disbursed by the Canadian government to eligible residents. It is intended to offset the high cost of federal pollution pricing and is distributed to residents of provinces that use the federal system of carbon pollution pricing.
CAI Payments
The CAI payments are distributed every three months (Quarterly) since the 2021 tax return and onwards. The payment amount varies depending on your eligibility and province of residence. Only residents of the following provinces are eligible to receive the CAI payments:
- Ontario
- Saskatchewan
- New Brunswick
- Manitoba
- Alberta
- Nova Scotia
- Newfoundland and Labrador
- Prince Edward Island
The payment amounts are as follows:
- Individual: $488 (Ontario), $680 (Saskatchewan), $92 (New Brunswick), $528 (Manitoba), $772 (Alberta), $124 (Nova Scotia), $164 (Newfoundland and Labrador), $120 (Prince Edward Island)
- Spouse: $244 (Ontario), $340 (Saskatchewan), $46 (New Brunswick), $264 (Manitoba), $386 (Alberta), $62 (Nova Scotia), $82 (Newfoundland and Labrador), $60 (Prince Edward Island)
- Per child under 19: $122 (Ontario), $170 (Saskatchewan), $23 (New Brunswick), $132 (Manitoba), $193 (Alberta), $31 (Nova Scotia), $41 (Newfoundland and Labrador), $30 (Prince Edward Island)
- First child in a single-parent family: $244 (Ontario), $340 (Saskatchewan), $46 (New Brunswick), $264 (Manitoba), $386 (Alberta), $62 (Nova Scotia), $82 (Newfoundland and Labrador), $60 (Prince Edward Island)
When is the Canada CAI Payment made?
The CAI Payment is made quarterly on the 15th of April, July, October, and January. If the 15th falls on a public holiday or weekend, the payment will be disbursed on the last business day before the 15th. The CAIP amount will be added to your tax refund if you choose the direct deposit payment mode. You will see the payment in your bank accounts as “Climate Action Incentive” or a similar option.
Canada CAI Payment Eligibility Conditions
To be eligible for the CAI Payment, you must be a resident of one of the aforementioned Canadian provinces on the finest day of the payment month and have attained the age of 19 before the CAI payment month. If you have not attained this age, you must fulfill one of the following conditions to be eligible:
- You are legally married currently or previously.
- You are a parent and live with your child.
How to Claim CAI Payment & Deposit?
To receive the CAI Payment quarterly, you and your spouse (if applicable) must file an income tax and benefit return. The payment will be made either to you or your spouse, depending on the account. You do not need to fill out an application form, as the CRA will automatically make the payment to your accounts with the income tax returns.
Conditions When You Must Contact the CRA
You must contact the CRA if the following changes occur:
- The number of children under your protection changes.
- In case of the recipient’s demise. You must be notified about the two possibilities if the deceased person was married or was single, divorced, widowed, or separated.
- Marital status transformations.
- Relocating or moving.
For more detailed information, please visit the CRA official website.
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