The impact of pollution on the environment is well documented. It is on this background that the Canadian government has spent over $100 billion to tackle this challenge since 2016.
While other provinces and territories in Canada have their carbon pollution pricing systems, the Climate Action Incentive Payment (CAIP) serves as the equivalent for Alberta, Manitoba, Ontario and Saskatchewan.
The reason is that these four provinces don’t have a carbon pollution pricing system that meets the benchmark of the federal government.
As a result, the federal government, through the CRA, administers the CAIP under the federal carbon pollution pricing system.
If you’re a resident of any of these provinces, you can receive up to 90% of direct fuel proceeds through CAIP and a 10% supplement if you reside in a small or rural community.
The fundamental question to ask here is: Who is eligible for the CAIP? How much exactly will you get from CAIP? What are the Climate Action Incentive Payment (CAIP) payment dates for 2023?
Answers to these and a lot of other related questions have been provided in this article.
Climate Action Incentive Payment (CAIP) Payment Dates For 2023
The Climate Action Incentive Payment (CAIP) payment dates for 2023 are highlighted below:
- January 13, 2023
- April 14, 2023
- July 14, 2023
- October 13, 2023
The CAIP payment is scheduled and paid quarterly, usually around April, July, October and January of the following year.
If you didn’t receive your entitled payment after 10 working days from the payment date, you should contact the CRA immediately.
What is the Climate Action Incentive Payment (CAIP)?
The Climate Action Incentive Payment (CAIP) is a tax-free benefit funded through the proceeds of the federal carbon pollution pricing. The proceeds are administered as a quarterly benefit to the residents of Manitoba, Alberta, Ontario and Saskatchewan.
CAIP consists of two benefits, basic amount (90% of direct proceeds) and supplement (10% of direct proceeds). Eligibility for these benefits varies as discussed in the subsequent parts of this article.
Before now, the proceeds from the climate pollution pricing were administered through the Climate Action Incentive (CAI). At that time, the benefit was only claimed on income tax returns. That is, it was a refundable tax credit.
However, the federal government replaced the CAI in 2021 with CAIP. With this development, the carbon proceeds are now disbursed directly to eligible individual accounts every quarter. Nevertheless, you must still file your tax returns to receive the CAIP payment.
Climate Action Incentive Eligibility
First, you must reside in Alberta, Manitoba, Ontario or Saskatchewan on the last day of the previous month and the first day of the payment month to qualify for the CAIP.
In addition, you must meet a minimum of one of the following requirements within the aforementioned period to be eligible for the payment:
- Reach the age of 19 or older
- Have/had a spouse or partner
- Be a parent with a child (presently or in the past)
However, not every child is eligible for the program at the beginning of the payment month. The following are the conditions that determine the eligibility of your child:
- Have an under 19-year child
- Be the primary caregiver of the child
- Live with the child
- Enrolled your child in the CCB payment
Once your child is receiving the Canada child benefit (CCB), the payment will be combined with your CAIP payment.
Not yet registered your child for the CCB? Check out this Canada Child Benefit (CCB) guide to learn how to get started.
That said, the CAIP payment will be shared 50/50 if you share child/children custody with your spouse.
How Much is Climate Action Incentive For 2022/2023?
How much CAIP you will receive depends on four factors – your province, marital status, family size and number of children under the age of 18.
The following are the CAIP payment structure for the 2022-2023 payment period:
Maximum Payment Amount For a Family of Four:
|2nd child (under 19)||$135||$104||$93||$138|
Maximum Amounts for Single Adult/First Adult in a Couple:
|July 2022 (plus April 2022 payment)||$269.50||$208.00||$186.50||$275.00|
Maximum Payment Amounts for Second Adult in a Couple/First Child of a Single Parent:
|July 2022 (plus April 2022 payment)||$135.00||$104.00||$93.00||$137.50|
Maximum Payment Amount for Each Under 18-Year Child:
|July 2022 (plus April 2022 payment)||$67.50||$52.00||$46.50||$69.00|
Note: For single parents, the payment starts with the second child.
It is worth noting that all the above payments are based on the 90% CAIP carbon proceeds. The 10% supplementary payment is calculated differently.
To ensure Canadians are getting the CAIP benefit they deserve, the federal government develops an estimate of the average cost of the federal system and CAI payment per household. The following is the 2022-23 estimate.
|Province||Estimate of the average cost of the federal system impact per household||Estimate of the average CAIP per household|
The estimate of the average cost of the federal system impact per household refers directly to the spending costs on fuel and indirectly to federal carbon pollution pricing-embedded products.
How is Climate Action Incentive Paid?
The Climate Action Incentive is paid through cheques and direct deposit. The CRA will send you the payment through direct deposit if you receive your tax refund by direct deposit.
Before 2021, the Climate Action Incentive was paid through cheque annually as a refundable tax credit on personal income tax returns.
Today, the benefit is administered quarterly through direct deposit and cheque depending on the recipient’s preferences.
That said, if you have tax debt on federal or provincial government programs, the debt will be deducted from your entitled CAIP amount.
How to Get the CAIP Payment
As an existing resident of Canada, the CRA will automatically enroll you in the CAIP quarterly payment once you file your annual income tax and benefit return.
Accordingly, you must file your 2021 income tax return and benefit return to qualify for the 2022/2023 CAIP payments.
However, if you didn’t file your taxes while your spouse or common-law partner did, your spouse or partner will be paid the full amount.
The CRA will continue paying you the CAIP quarterly once you and your spouse/partner continue to file your annual income tax and benefit returns.
CAIP Application to Canadian Newcomers
Canadian newcomers are required to apply for the CAIP payment by filling out one of the following forms and submitting it to their tax centres:
- Fill out Form RC66SCH, Status in Canada and Income Information for the Canada Child Benefits Application for citizenship, residency and Statement of Income capturing.
- Fill out Form RC66, Canada Child Benefits Application for CCB and other child and family benefits applications.
- Fill out Form RC151, GST/HST and CAI Credit Application for Individuals Who Become Residents of Canada if you don’t have a child.
Now that we have discussed everything about the CAIP basic amount, let’s turn to the supplementary benefit.
The CAIP supplementary benefit constitutes 10% of the direct proceeds from the climate pollution pricing. The supplement is administered only to the eligible individuals living outside a Census Metropolitan Area (CMA) in Ontario, Alberta, Manitoba or Saskatchewan.
Click here to learn about your eligibility for the CAIP supplementary benefit.
Once you’re eligible, you can fill out the Schedule 14 form and attach it to your annual income tax return and benefit return and mail them to your tax centre.
Some FAQs Climate Action Incentive Payment (CAIP) Payment Dates
No! CAIP is a tax-free benefit. The CRA doesn’t withhold tax on all Climate Action Incentive Payments.
The Climate Action Incentive Payment is a quarterly payment administered by the Canada Revenue Agency (CRA).
The Climate Action Incentive Payment is paid quarterly. However, in the July 2022 payment, the CRA made a double payment with a retroactive amount for April 2022.
No; Only one parent or spouse can receive the Climate Action Incentive Payment. But regardless of who’s receiving the payment, the CRA will send the person the full entitled amount.
However, if you share the custody of a child or children with your spouse, the payment will be shared 50/50 between you.
CAIP is not an income-tested benefit like GST/HST, CCB and other CRA administered benefits. That means, everyone will receive the same amount irrespective of their taxable income.
A single adult in Ontario will receive CAIP amounts of $373 per year for the 2022-2023 payment period. A family of 4 on the other hand will receive $838 per annum.
For a family of four, the total CAIP amount for the year will be $1,214 in Alberta, $936 in Manitoba, $838 in Ontario and $1,238 in Saskatchewan. Eligible singles will receive $539, $416, $373 and $550 respectively.
Not everyone gets the Climate Action Incentive payment in Canada. The payment is made to the eligible residents of Alberta, Manitoba, Ontario and Saskatchewan.
The CRA allows you to change your income tax and benefit return to claim the outstanding Climate Action Incentive payment you’re entitled to upon filing your tax and benefit return.
The Climate Action Incentive is calculated based on your province of residence, marital status, family size and number of under-18-year children.
If you’re eligible, tax-free government benefits like the Climate Action Incentive Payment (CAIP) are a good source of extra cash to put towards your other goals or use to cover some bills. So it is important to file your taxes on time to get the benefits you’re entitled to.
But if you’re not residing in Ontario, Alberta, Manitoba or Saskatchewan, ensure you check out your provincial or territorial equivalent of CAIP such as the British Columbia BC climate action tax credit (BCCATC).
To maximize your earnings, check out our related blog posts on other government benefits in Canada, such as: