Carbon Tax

The Government of Canada has issued Climate action incentive payments as of July, 2023.

The Climate action incentive payment is a tax free amount paid to help families and individuals offset the cost of the federal pollution pricing.

The Government of Canada has changed the payment method for the CAI from a refundable credit claimed annually on personal income tax returns to quarterly tax free payments made through the benefit system starting in July 2022.

The federal fuel charge will only come into effect as of July 1, 2023 in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island. Residents of these provinces will receive three quarterly payments (July 2023, October 2023, and January 2024) in the first year and four payments in the year(s) after that.

You are eligible for this credit if you are a resident of Canada for income tax purposes at the beginning of the month in which the CRA makes a payment. To be eligible, you must also be a resident of an applicable CAIP province on the first day of the payment month.

More Information will be released as we get another update.