The Climate Action Incentive (CAI) Payment is a tax-free benefit known as a carbon tax rebate. It is not available in all of Canada, only in Alberta, Ontario, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Prince Edward Island, and Newfoundland and Labrador.
In Alberta, 90% of direct proceeds from the federal fuel charge will be returned to residents through the CAI payments.
Learn more about CAIP in Alberta, the Climate Action Incentive Payment dates, and the amount you can receive.
Key Takeaways
- The Climate Action Incentive (CAI) payment is a tax-free benefit that helps individuals and families offset the cost of federal pollution pricing. It is now called the Canada Carbon Rebate or CCR.
- The quarterly CAI payment in Alberta is $193 for the first adult, $96.50 for the second adult, $48.25 for each child, and $386 for a family of 4.
- The Climate Action Incentive Payment dates for the benefit are April 2023, July 2023, October 2023, and January 2024.
What is the Climate Action Incentive Payment?
The Climate Action Incentive Payment is a tax-free benefit that helps individuals and families offset the cost of federal pollution pricing. It is now called the Canada Carbon Rebate.
The CAIP is a quarterly payment available to qualified residents. It consists of a basic amount and a 10% supplement for small and rural areas.
The Canadian government fights climate change by pricing pollution and ensuring households get more money back than they pay. To do this, they direct proceeds from the federal fuel charge to the province or territory of origin.
Provinces like Alberta do not fully meet the federal requirements in 2023-24, so 90% of direct proceeds will be returned to households through the Climate Action Incentive payments.
Canada started administering quarterly CAI payments to households in July 2022. It aims to return fuel charge proceeds to residents more regularly. Eight out of ten households receive more money back than they pay.
Low- and middle-income households benefit the most from CAIP since they receive the full payment but are not prone to spend much on energy-intensive items.
Climate Action Incentive Payment Dates for 2024
The Climate Action Incentive Payment dates for 2024 are as follows:
- April 15, 2024
- July 15, 2024
- October 15, 2024
- January 15, 2025
There are four quarterly payments for qualified Alberta residents. The province will continue to receive four equal quarterly payments since it is already covered by the federal price on pollution.
Climate Action Incentive Payment Amount in Alberta
The quarterly Climate Action Incentive Payment amounts for eligible residents in Alberta for 2024-2025 (as specified by the Minister of Finance) are as follows:
- First adult – $225
- Second adult – $112.50
- Each child – $56.25
- Family of 4 – $450
Below are the annual Climate Action Incentive Payment 2023 amounts:
- First adult – $900
- Second adult – $450
- Each child – $225
- Family of 4 – $1,800
Climate Action Incentive Payment Eligibility
To be eligible to receive the CAI payments, you must be a resident of Alberta on the first day of the month that the Canada Revenue Agency (CRA) makes a payment.
You must also be at least 19 years old in the month before the CRA makes a quarterly payment. If you are under 19 years old, you can qualify if you:
- Have (or previously had) a spouse or common-law partner, or
- Are (or previously were) a parent and live (or once lived) with your child
The CAIP carbon tax rebate is not calculated using income as a basis. Your payment depends on your family situation and the province or territory where you reside.
There are no income thresholds used to determine eligibility. The CAI payments are universal and not contingent on a benefit reduction based on adjusted family net income.
How To Apply for the Climate Action Incentive Payment in Alberta
You do not need to apply to receive CAI payments. The CRA will determine your eligibility by referring to the information on your income tax and benefit return and sending you payments if you are eligible.
If you have a spouse or a common-law partner, only one can get the CAIP for the family. The CRA will send the benefit to the one who filed the return first.
To continuously claim your Climate Action Incentive Payment in Alberta, file your income tax return yearly.
When is the Carbon Tax Rebate Paid in Alberta?
For 2024 to 2025, the payment dates for the carbon tax rebate in Alberta are April 2024, July 2024, October 2024, and January 2025.
If you enrolled in direct deposit, the CRA will send your payment directly to your account. Otherwise, you will receive your cheques via mail.
Canadians registered for direct deposits from the CRA may find these payments in their bank accounts as “Climate Action Incentive.”
FAQs
Only Alberta residents who meet the CAI payment requirements will receive the benefit. To qualify for the incentive, you must be a resident of Alberta and at least 19 years old before the Canada Revenue Agency makes a payment. Having children, a spouse, or a common-law partner can likewise qualify you for the incentive.
If you are eligible for CAI payments (CAIP), you can expect to receive them on the 15th of April, July, October, and January. If the 15th falls on a Saturday, Sunday, or federal statutory holiday, your CAIP will be scheduled on the last business day before the 15th.
The 2024-2025 quarterly Climate Action Incentive Payments in Alberta are as follows: $225 for the first adult, $112.50 for the second adult, $56.25 for each child, and $450 for a family of 4. The annual credit for an individual is $900, $450 for a spouse or common-law partner, and $225 for each child under 19.
Among the most common reasons for not receiving the carbon tax rebate are errors or omissions on your income tax return, such as an incorrect SIN or errors in your income information. Not filing your income tax return may be another reason for not receiving your rebate. The CRA uses your return to assess your eligibility and sends you the payments if you qualify.
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