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:
- Manitoba
- New Brunswick
- Ontario, and
- Saskatchewan
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
2018
- those confined to a prison or similar institution for a
period of at least 90 days during 2018
- those exempt in Canada at any time in 2018 due to being an
officer or servant of the government of another county, such as a diplomat, a
family member who resided with such a person, or an employee of such a person
- person in respect of whom a children's special allowance
(CSA) was payable at any time in 2018
- taxpayers who died before April 1, 2019
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
- had a spouse or common-law partner, or
- is a parent who lives with their child
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
| Ontario | New Brunswick | Manitoba | Saskatchewan | ||
| A | Single adult, or first adult in a couple1 | $154 | $128 | $170 | $305 |
| B | Second adult in a couple2, or first child of a single parent | 77 | 64 | 85 | 152 |
| C | Each child under 183 (starting with the 2nd child for single parents) | 38 | 32 | 42 | 76 |
1 Referred to as a
qualified individual in the legislation.
2 Referred to as a qualified relation
in the legislation.
3 Referred to as a qualified dependant
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)
| Ontario | New Brunswick | Manitoba | Saskatchewan | |
| Baseline amount (A + B + 2 x C) | $307 | $256 | $339 | $609 |
| 10% Supplement1 for residents of small and rural communities | 30.70 | 25.60 | 33.90 | 60.90 |
| Payment amount for family of 4 in small/rural communities | $337.70 | $281.60 | $372.90 | $669.90 |
1 See next section
Climate Action Incentive 10% Supplement for Residents of Small and Rural Communities
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:
| Areas Not Eligible for 10% Supplement | |
| Province | Census Metropolitan Areas |
| Manitoba | Winnipeg |
| New Brunswick | Moncton Saint John |
| Ontario | Barrie Belleville Brantford Greater Sudbury Guelph Hamilton Kingston Kitchener-Cambridge-Waterloo London Oshawa Ontario part of Ottawa-Gatineau Peterborough St. Catharines-Niagara Thunder Bay Toronto Windsor |
| Saskatchewan | Saskatoon Regina |
Federal Government Resources
Department of Finance information on the Climate Action Incentive.
Canada Revenue Agency - Line 449 Climate Action Incentive
Tax Return Schedule 14, Climate Action Incentive:
- Manitoba
- Ontario
Other Provinces and Territories and Climate Action Measures
Alberta Carbon levy and rebates
BC Carbon Tax and Low Income Climate Action Tax Credit
Newfoundland and Labrador Carbon Pricing Plan
Northwest Territories - Implementing Carbon Pricing in the NWT
Nova Scotia Cap-and-Trade Program, Energy Efficiency Nova Scotia
Prince Edward Island Climate Change Plan, Energy Efficient Equipment Rebates and Energy Rebate
Quebec Cap and Trade System for Greenhouse Gas Emissions Allowances
Revised: April 15, 2019