The Climate Action Incentive Payment (CAIP) is a program established by the Government of Canada to help individuals and families in specific provinces offset the costs associated with federal pollution pricing.
CAIP consists of a basic amount and a supplement for residents of small and rural communities. If you are a resident of Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, or New Brunswick you can receive your Climate Action Incentive Payment (CAIP).
In this comprehensive guide, we’ll walk you through all the essential information about the CAIP program. From eligibility criteria to application processes, payment details, and more, you’ll have a clear understanding of how CAI paymentj works and how it can benefit you.
Who is Eligible to Receive Canada’s Climate Action Incentive Payment?
To be eligible for CAI Payment, you must need to meet the following criteria.
- Firstly, you must be at least 19 years old at the beginning of the month when the Canada Revenue Agency (CRA) issues the payment.
- You must also be a resident of Canada for income tax purposes.
Additional Criteria for Younger Individuals:
If you are under 19 years old, you can still qualify if you meet any of the following conditions:
- You have a common-law partner or spouse.
- You are a parent (or were one in the past) and currently or previously lived with your child.
If you have children, they must meet these criteria at the start of the payment month to be eligible:
- They should be under 19 years old.
- They must live with you.
- You must be primarily responsible for their care and upbringing.
- Your child should be registered for the Canada Child Benefit, which affects the CAIP calculation.
Eligibility for Newcomers to Canada:
Newcomers in Canada, such as international students, work permit holders, and permanent residents, can access CAIP benefits.
Unlike certain other tax credit payments, newcomers must apply for CAIP to avail themselves of the benefits.
How to Apply for CAIP As a Newcomer:
If you are a newcomer to Canada and meet the eligibility criteria, follow these steps to apply for CAIP:
With Children: Complete and sign Form RC66, the Canada Child Benefits Application, to apply for various child and family benefits, including the GST/HST credit. Additionally, fill out Form RC66SCH, Status in Canada and Income Information for the Canada Child Benefits Application, which captures your citizenship, residency details, and Statement of Income.
Without Children: Fill out and sign Form RC151, the GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada.
Mail the completed form to your tax center.
How Much CAI Payment You Can Expect To Receive?
CAIP payments are designed to provide financial assistance, and the amount you receive depends on various factors, including your province of residence and family situation.
CAIP payments are universal benefits and remain unaffected by any reduction linked to your family’s adjusted net income.
Here are the CAIP payment amounts for different provinces in 2023:
The Ontario program provides an annual credit of :
- Individual: $488
- Spouse or Common-law Partner: $244
- Child under 19: $122
- First child in a single-parent family: $244
The Manitoba program provides an annual credit of :
- Individual: $528
- Spouse or Common-law Partner: $264
- Child under 19: $132
- First child in a single-parent family: $264
The Saskatchewan program provides an annual credit of :
- Individual: $680
- Spouse or Common-law Partner: $340
- Child under 19: $170
- First child in a single-parent family: $340
The Alberta program provides an annual credit of :
- Individual: $772
- Spouse or Common-law Partner: $386
- Child under 19: $193
- First child in a single-parent family: $386
Additional Benefit for Rural Communities:
The Climate Action Incentive Payment (CAIP) includes a rural supplement of 10% of the base amount for residents of small and rural communities. The Canada Revenue Agency (CRA) does not charge or provide interest on any CAIP overpayments or underpayments.
For provinces not listed above, the payment structures for Climate Action Incentive Payments (CAIP) may differ. It is crucial to verify the specific details by contacting the Canada Revenue Agency (CRA) or referring to their official website.
Newfoundland and Labrador:
The Newfoundland and Labrador program provides a quarterly credit of
- Individual: $164
- Spouse/Common-Law Partner: $82
- Per Child under 19: $41
- First Child in Single-Parent Family: $82
The Nova Scotia program provides a quarterly credit of
- Individual: $124
- Spouse/Common-Law Partner: $62
- Per Child under 19: $31
- First Child in Single-Parent Family: $62
Prince Edward Island:
The Prince Edward Island program provides a quarterly credit of
- Individual: $120 (includes 10% rural supplement)
- Spouse/Common-Law Partner: $60 (includes 10% rural supplement)
- Per Child under 19: $30 (includes 10% rural supplement)
- First Child in Single-Parent Family: $60 (includes 10% rural supplement)
The New Brunswick program provides a quarterly credit of
- Individual: $92
- Spouse/Common-Law Partner: $46
- Per Child under 19: $23
- First Child in Single-Parent Family: $46
Note: The payment amounts for Prince Edward Island already include a 10% rural supplement for all residents.
Double Payment for New Brunswick in October 2023
The October 2023 payment for New Brunswick is a double payment, covering the July to September 2023 and October to December 2023 periods.
The 2022 rural supplement question for residents of small and rural communities will be on the 2023 income tax and benefit return, and a retroactive payment will then be issued for the 2022 base year.
Rural residents in other provinces will also receive the 10% rural supplement, although it is not reflected in the figures mentioned above for Newfoundland and Labrador and Nova Scotia.
CAIP payments are made quarterly, with the following schedule:
Payments are typically distributed on the 15th of these months. However, if the 15th falls on a weekend or a federal statutory holiday, the payment will be made on the last business day before the 15th.
The upcoming Climate Action Incentive Payment (CAIP) dates are:
- October 13, 2023
- January 15, 2024
If your tax refund is received through direct deposit, your CAIP payments will also be deposited directly into your account. To sign up for direct deposit, please visit the Direct Deposit web page for detailed instructions.
In your bank account, CAIP payments will appear as “Climate Action Incentive” (terminology may differ based on your financial institution).
If you have outstanding tax debts with the Canada Revenue Agency (CRA), your CAIP payments will be used to settle any existing income tax balances or amounts owed to other federal or provincial government programs.
If You Didn’t Receive Your Payment
If your CAIP payment is not received on the expected date, it is advisable to wait for 10 working days before reaching out to the CRA for assistance.
Can everyone Get the Climate Action Incentive Payment (CAIP)?
It is essential to understand that not all Canadian residents qualify for the Climate Action Incentive Payment.
CAIP eligibility is limited to residents of provinces where a federal carbon pricing system is implemented, namely Ontario, Manitoba, Saskatchewan, and New Brunswick.
Eligibility criteria can vary, so it is recommended to consult the Canada Revenue Agency (CRA) for precise information regarding who qualifies for this payment.
The Climate Action Incentive Payment (CAIP) is a significant initiative by the Government of Canada to provide financial support to residents of specific provinces.
Understanding the eligibility criteria, application process, payment amounts, and payment schedule outlined in this guide can help you make the most of this valuable program.
If you have any questions or need further assistance, do not hesitate to reach out to the Canada Revenue Agency. By staying informed and taking the necessary steps, you can ensure that you receive the benefits you are entitled to under the CAIP program.