What is the Climate Action Incentive Payment? (2022)

In its commitment to protecting the environment and growing our economy, the government introduced the Climate Action Incentive (CAI).

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.

Capilano bridge and lush evergreen trees in BC

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
Alberta $490 $245 $123 $245
Saskatchewan $500 $250 $125 $250
Manitoba $360 $180 $90 $180
Ontario $300 $150 $75 $150

Source: Canada.ca

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.

Fun Fact

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?
  • Does it matter who claims the climate action incentive?

Tara Al-Khudairi is a freelance personal finance writer who has worked in the financial services industry since 2017. She graduated from McMaster University with a degree in Finance and is pursuing her CFA.

She has worked at a major Canadian financial institution in various client-facing advisory roles, starting as a bank teller and working up to a Client Services Associate within the Asset Management division. She specializes in simplifying concepts of personal finance for people of various financial backgrounds.

When she’s not examining the markets looking for the next SHOP.TO, she’s either practicing yoga, planning her next vacation, or has her nose buried deep in a book.