The CAI is a benefit payable to eligible persons living in Alberta, Saskatchewan, Manitoba or Ontario, since these provinces charge their residents a federal carbon tax.
This tax is incorporated in the cost of gas and home heating bills with the goal of incentivizing people and businesses to be more environmentally friendly.
The CAI tax credit was created to help offset this cost.
Climate Action Incentive Eligibility
To be eligible for the Climate Action Incentive payment, you first need to be a resident of either Alberta, Saskatchewan, Manitoba or Ontario.
In addition, you must be at least 18 years old to qualify, however there are some exceptions for those under the age of 18.
You can’t claim CAI if any of the below were applicable to you in 2020:
- You were not a resident of Canada
- You were imprisoned or confined to a similar institution for a minimum of 90 days
- You, one of your family members or your employer is/are an officer or servant of another country (for example, a diplomat)
- You received or were eligible to receive a children’s special allowance
To learn more about CAI eligibility, click here.
How Do I Claim the Climate Action Incentive?
Only one person per household can claim the Climate Action Incentive, so make sure to figure it out with your family in advance so that only one person applies.
To claim the CAI, you must have filed your 2020 tax return – make sure to complete Schedule 14 too and file it with the CRA.
Here are the Schedule 14 forms for each province:
Climate Action Incentive Payment Amounts
The payment amounts for the CAI vary depending on which province you live in, whether you have a spouse or common-law partner, and whether you have any dependents.
Check out the table below for the maximum amounts you can claim for CAI.
|Province||Basic Amount||Spouse or Common-Law Partner Amount||Qualified Dependent Amount||Single Parent’s Qualified Dependent Amount|
If you live in a rural community or small town, you could be eligible for an extra 10% on top of these amounts.
For this, you would have had to be living outside of a census metropolitan area (CMA) on December 31, 2020.
To find out if you qualify for this additional 10%, see details here.
Unlike most tax credits, the Climate Action Incentive won’t vary based on your personal or household income.
Frequently Asked Questions
- Does everyone qualify for the Climate Action incentive?
No. You first need to be a resident of either Alberta, Saskatchewan, Manitoba or Ontario. You must also be at least 18 years old in most cases and meet a few additional basic requirements.
- Does it matter who claims the climate action incentive?
No, as long as the person is eligible. Only one person per household can claim the Climate Action Incentive, so make sure to figure it out with your family in advance so that only one person applies.