Filing Your Return -> Federal Climate Action Incentive
Line 45110 Climate Action Incentive (CAI) Refundable Tax Credit
- will not be on 2021 tax returns
Note: Before tax year 2019, line 45110 was line 449.
Income Tax Act s. 122.8
The Climate Action Incentive refundable tax credit was included in the 2018 Federal Budget and enacted for 2018 and later years as part of Bill C-86, Budget Implementation Act 2018, No. 2.
The CAI was claimed on the federal income tax return up until the 2020 tax return, and was calculated on Schedule 14 Climate Action Incentive. The CAI is included in the 2020 Detailed Canadian Tax Calculator, near the bottom of the calculator. The CAI amount must be entered by the user (as a negative amount) and is not checked.
For the amounts for the 2020 tax return see Climate Action Incentive payment amounts for 2021 (2020 tax return). Links for earlier years can be found below.
CAI to be Paid Quarterly Starting in 2022
The 2021 Federal Budget announced that starting in 2022, the CAI will be paid to taxpayers at the beginning of each quarter, instead of being included on the tax return. The 2022 CAI will not be claimed on the 2021 tax return, but the 2021 tax return must be filed in order to receive the quarterly payments, the same way that other quarterly payments and refundable tax credits depend on the tax return being filed. If you live outside a census metropolitan area, schedule 14 of the 2021 tax return must be completed. The legislation for this change was included in Bill C-19 Budget Implementation Act, 2022, No. 1, which received Royal Assent on June 23, 2022.
The quarterly payments will start in July 2022 with a double payment, for the first two quarters of the 2022-2023 fuel charge year (April 2022 to March 2023. See the December 3, 2021 news release.
The only provinces for whom this credit was available for 2020 (on the 2019 tax return) were:
The same provinces had the credit available for 2021, on the 2020 tax return.
These provinces have not adopted the federal system for pricing carbon pollution, or their systems do not meet the federal standard for reducing carbon pollution. For those jurisdictions that have voluntarily adopted the federal system, direct proceeds will be directly returned to the governments of those jurisdictions.
Who is Not Eligible:
Who is Eligible:
Only residents of Alberta, Manitoba, Ontario or Saskatchewan on December 31 of the taxation year are eligible, and the resident must meet one of the following criteria at that time:
The months specified for the 2021 taxation year are the months of April, July, and October of 2022, and January 2023. Thus, if a person has turned 19 before one of those months they will be an eligible individual. If they are under 19 before one of those months they will still be a qualified dependant.
If there are adult children age 18+ (19+ for the 2022 and later payments) in the household they should file their own tax return in order to claim the full adult climate action incentive, as well as to receive the GST/HST credit if they are eligible.
1 Referred to as a
qualified individual in the legislation.
Department of Finance Announcements
Climate Action Incentive payment amounts for 2022 (cheques to be mailed quarterly starting July 2022, with 2 quarters being paid in the initial payment)
Climate Action Incentive payment amounts for 2021 (2020 tax return)
Climate Action Incentive payment amounts for 2020 (2019 tax return)
Climate Action Incentive payment amounts for 2019 (2018 tax return)
CAI payment amounts for subsequent years will be specified by the Minister of Finance.
CAI Calculation Example for a Family of 4 (2 adults, 2 children) for 2022, including 10% supplement
1 10% Supplement - see next section
If you reside outside of a census metropolitan area (CMA) on December 31, as defined by Statistics Canada, then you are eligible for a 10% supplement to the baseline amount of the CAI.
See the Canada Revenue (CRA) information Find out if you qualify for the 10% supplement for residents of small and rural communities
Federal Government Climate Action Incentive Resources
Tax Return Schedule 14, Climate Action Incentive for tax year 2021 - must be completed if you live outside a census metropolitan area, for Alberta, Manitoba, Ontario or Saskatchewan. See the tax package for your province, Schedule 14.
Other Provinces and Territories and Climate Action Measures
Revised: September 20, 2022
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