Filing Your Return -> Federal Climate Action Incentive
Line 45110 Climate Action Incentive (CAI) Refundable Tax Credit
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 is claimed on the federal income tax return, and is calculated on Schedule 14 Climate Action Incentive. The CAI is included in the 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. The amounts to be claimed for 2021 on the 2020 tax return are shown below.
The only provinces for whom this credit was available for 2020 (on the 2019 tax return) were:
The same provinces have 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.
The amounts of the CAI for the 2022, to be claimed on the 2021 tax return, won't be announced until December 2021.
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:
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 2021
- claimed on the 2020 tax return
1 Referred to as a
qualified individual in the legislation.
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)
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:
Other Provinces and Territories and Climate Action Measures
Revised: August 22, 2021
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