Climate Action Incentive Payment is a tax-free amount paid to help individuals and families 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.
Residents of this province 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 don’t need to apply to receive the payment for the CAIP. The Canada Revenue Agency (CRA) will determine your eligibility when you file your income tax and benefit return and will send you payments if you’re entitled to them.
For more information, please visit www.canada.ca and search CAIP in the search bar option.