What is the Climate Action Incentive Payment (CAIP)?

According to the Canada Revenue Agency, the Climate Action Incentive Payment (CAIP) is a tax-free sum designed to assist qualifying individuals and families in mitigating the expenses associated with federal pollution pricing. It comprises a fundamental component and an additional supplement specifically tailored for residents in small and rural communities.

Before 2021, the Climate Action Incentive (CAI) functioned as an annual refundable tax credit, claimed through personal income tax returns.

More about the Climate Action Incentive Payment

Who is eligible for the Climate Action Incentive?

The Climate Action Incentive Payment is available in the following provinces:

• Alberta
• Manitoba
• New Brunswick
• Newfoundland and Labrador
• Nova Scotia
• Ontario
• Prince Edward Island
• Saskatchewan

• You are a resident of Canada in the month before the payment
• You are a resident of an applicable CAIP province on the first day of the payment month

How much can you get from the Climate Action Incentive?

The amount of CAIP you obtain is contingent upon your family circumstances and the province of residence. CAIP is not subject to a reduction in benefits based on adjusted family net income.

Additionally, a rural supplement of 10% of the base amount is incorporated into CAIP for individuals residing in small and rural communities, the Canada Revenue Agency said.

Here is the base amount you can receive from the CAIP depending on the province of residence:

• Alberta
  • $193 for an individual
  • $96.50 for a spouse or common-law partner
  • $48.25 per child under 19
  • $96.50 for the first child in a single-parent family
• Manitoba
  • $132 for an individual
  • $66 for a spouse or common-law partner
  • $33 per child under 19
  • $66 for the first child in a single-parent family
• New Brunswick
  • $92 for an individual
  • $46 for a spouse or common-law partner
  • $23 per child under 19
  • $46 for the first child in a single-parent family
• Newfoundland and Labrador
  
  • $164 for an individual
  • $82 for a spouse or common-law partner
  • $41 per child under 19
  • $82 for the first child in a single-parent family
• Nova Scotia
  
  • $124 for an individual
  • $62 for a spouse or common-law partner
  • $31 per child under 19
  • $62 for the first child in a single-parent family
• Ontario
  
  • $122 for an individual
  • $61 for a spouse or common-law partner
  • $30.50 per child under 19
  • $61 for the first child in a single-parent family
• Saskatchewan
  
  • $170 for an individual
  • $85 for a spouse or common-law partner
  • $42.50 per child under 19
  • $85 for the first child in a single-parent family
• Prince Edward Island
• $120 for an individual
• $60 for a spouse or common-law partner
• $30 per child under 19
• $60 for the first child in a single-parent family

When are the Climate Action Incentive payment dates?

The CAIP goes out in four quarterly payments, with the first being distributed in January 2024:

• January 15, 2024
• April 15, 2024
• July 15, 2024
• October 15, 2024