The Climate Action Incentive Payment (CAIP) is distributed on a quarterly basis. For 2023 & 2024, residents of eligible provinces can expect to receive their CAIP payments on the following dates:
- April 15, 2023
- July 15, 2023
- October 15, 2023
- January 15, 2024
These payments help individuals and families offset the cost of federal pollution pricing. Please note that these dates are specific to the years 2023 & 2024, and the payment amounts may vary based on your province of residence and family situation.
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What is Climate Action Incentive Payment?
The Climate Action Incentive Payment (CAIP) is a tax-free financial aid designed to help individuals and families offset the costs associated with federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, and New Brunswick. CAIP consists of a basic amount and a supplement, which is particularly beneficial for residents of small and rural communities.
Who is Eligible for the Climate Action Incentive Payment 2023?
Eligibility for the Climate Action Incentive Payment (CAIP) is determined based on various criteria:
Residency and Age
To be eligible for this credit, you must be a resident of Canada for income tax purposes at the beginning of the month in which the Canada Revenue Agency (CRA) makes a payment. In the month before the CRA makes a quarterly payment, you must be at least 19 years old. However, there are exceptions for those under 19 who meet specific conditions.
If you have an eligible child, you may receive additional benefits. An eligible child is one who is under 19 years of age, lives with you, you are primarily responsible for their care and upbringing, and they are registered for the Canada Child Benefit.
Newcomers to Canada
If you are a newcomer to Canada, there are specific steps to follow to apply for the Climate Action Incentive Payment (CAIP), depending on whether or not you have children. Completing the required forms is the first step in securing this benefit.
No Application Required
The beauty of CAIP is that you don’t need to submit a separate application. The CRA determines your eligibility when you file your income tax and benefit return, and if you qualify, they will send you the payments accordingly. If you have a spouse or common-law partner, only one of you can receive the family credit. The amount remains the same, regardless of which partner’s return is filed first.
One of the notable features of CAIP is the rural supplement, which adds 10% to the base amount for residents of small and rural communities. To claim this supplement, you must complete a specific question on your income tax and benefit return. This additional support is particularly beneficial to those residing in rural areas, and its inclusion is an extra financial boost.
Climate Action Incentive Payment Notice for 2023?
The amount you receive through Climate Action Incentive Payment (CAIP) depends on your family situation and the province you reside in. Importantly, the payment is universal, meaning it is not subject to a benefit reduction based on adjusted family net income.
Climate Action Incentive Payment 2023:
- 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.
- 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.
- 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.
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For those who already receive their tax refunds by direct deposit, you can anticipate your CAIP payments in the same manner. The payment will be labeled as “Climate Action Incentive” in your bank account.
It’s important to note that if you have outstanding tax debts with the CRA, the CAIP may be applied to cover these balances.
Remember, knowledge is the key to maximizing your benefits. Stay informed, and make the most of the Climate Action Incentive Payment to support your environmental and financial goals.
For more information and resources, please visit Canada.ca/balance-owing.