Climate Action Incentive Program (CAIP) – Who gets this payment? How much will I receive?

The CAIP – Climate Action Incentive Program – is a program established by the Canadian government, to give tax free funds back to Canadian residents to offset the cost of federal pollution pricing. It is available to residents of:

  • Alberta
  • Saskatchewan
  • Manitoba
  • Ontario

You have to have been a resident of one of those provinces on the first day of the payment month, and the last day of the previous month.

Previously, this credit was given on a person’s income tax return. So, rather than receive it as cash, it was a refundable credit that was claimed annually when you filed your taxes. But, starting this year – starting TOMORROW in fact! – that has all changed. Now, residents of those provinces will receive it as a cash payment.

There are also other criteria needed to receive your CAIP payment. You must be:

  • 19 years of age or older
  • You have or previously have had a spouse or common-law partner (to receive the amount for couples)
  • You are or previously were a parent and live or previously lived with your children (to receive the additional amount for children.)

You have an eligible child if your child is:

  • under 19 years of age (if they’re that age or older, they themselves will receive a CAIP payment if they meet the requirements)
  • lives with you
  • you are the one primarily responsible for caring for your child
  • is registered for the Canada Child Benefit

When will I receive my CAIP payment?

The initial payment was technically to be sent out on April 15, 2022. So, for the first actual payment on July 15, 2022, most people will receive a double-up payment, meaning that their payments for April and July will be included.

These payments are quarterly, so the following payments for 2022 will be on:

  • October 15, 2022
  • January 15, 2023 (not actually in the year 2022)

How much money will I get for my CAIP payment?

The amounts vary slightly for each of the four provinces included in the CAIP program: Alberta, Saskatchewan, Manitoba and Ontario. For that reason, I’m including the chart of payment amounts set by the Canadian government. You can decipher how much exactly your family will receive, depending on if you’re a single person, married or common-law or if you have children. All of these affect the total amount you’ll receive. People living in a rural setting are also able to receive a 10% premium amount on top of the original CAIP payment.

How do I apply for the CAIP? Do I have to apply?

There is no need to apply – you just need to have filled out last year’s income tax return and sent it in. The CRA determines your eligibility based on your last income tax return.