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, 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 how much you can get.
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.
- 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.
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 benefit is only available in Ontario, Manitoba, Alberta, and Saskatchewan. Nova Scotia, Prince Edward Island, and Newfoundland and Labrador residents will receive the benefit starting July 1, 2023.
The Canadian government fights climate change by pricing pollution and ensuring households get more money back than they pay.
The government ensures that by directing proceeds from the federal fuel charge to the province or territory of origin.
Provinces like Alberta do not meet the federal stringency requirements in 2023-24, so 90% of direct proceeds will be returned to households through the Climate Action Incentive payments.
The government started administering quarterly CAI payments to Canadian households in July 2022.
It aims to return fuel charge proceeds to residents more regularly. Out of 10 households, 8 get 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 2023
The Climate Action Incentive Payment dates for 2023 are as follows:
- April 2023
- July 2023
- October 2023
- January 2024
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 2023-2024 (as specified by the Minister of Finance) are as follows:
- First adult – $193
- Second adult – $96.50
- Each child – $48.25
- Family of 4 – $386
Below are the annual Climate Action Incentive Payment 2023 amounts:
- First adult – $772
- Second adult – $386
- Each child – $193
- Family of 4 – $1,544
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. The payment you receive 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 on the basis of adjusted family net income.
How To Apply for the Climate Action Incentive Payment in Alberta
There is no need to apply to receive CAI payments. The CRA will determine if you are qualified 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 2023 to 2024, the payment dates for the carbon tax rebate, officially called Climate Action Incentive (CAI) payments, in Alberta are April 2023, July 2023, October 2023, and January 2024.
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 residents in Alberta 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 a federal statutory holiday, the schedule of your CAIP will be on the last business day before the 15th.
The 2023-2024 quarterly Climate Action Incentive Payments in Alberta are as follows: first adult – $193; second adult – $96.50; each child – $48.25; and for a family of 4 – $386. The annual credit for an individual is $772, $386 for a spouse or common-law partner, and $193 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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