Filing Your Return -> Federal Climate Action Incentive
Line 449 Climate Action Incentive (CAI) Refundable Tax Credit
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 for 2019 will be claimed on line 449 of the 2018 federal income tax return, and will be calculated on Schedule 14 Climate Action Incentive. However, it is not included in the Detailed Canadian Tax Calculator.
The only provinces for whom this credit is available are:
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:
- non-resident of Canada at any time in
Who is Eligible:
Only residents of Manitoba, New Brunswick, 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:
- 18 years of age or older, or
If there are adult children age 18+ 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.
Climate Action Incentive Payment Amounts
1 Referred to as a
qualified individual in the legislation.
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)
1 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. For purposes of the 2018 tax return the Census Metropolitan Areas are:
Federal Government Resources
Tax Return Schedule 14, Climate Action Incentive:
Other Provinces and Territories and Climate Action Measures
Revised: April 15, 2019
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