What Is the Climate Action Incentive Payment? Dec 26th

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Most Canadians are familiar with longstanding tax credits, such as the GST/HST credit and the Canada Child Benefit (CCB). But there’s another family credit you may be eligible for, and it’s paid in quarterly installments. It’s called the Climate Action Incentive (CAIP), and it’s been expanded to three additional provinces for 2023-24.
In this article, I’ll share everything you need to know about this important benefit, including who is eligible, how much you can receive, and why the benefit exists in the first place.
What Is the Climate Action Incentive Payment?
The Climate Action Incentive Payment is a tax-free quarterly payment made to residents of several Canadian provinces to offset the cost of the federal carbon tax.
Before 2021, the CAI was a refundable tax credit you claimed on your income tax return. However, as of July 2022, the credit became a quarterly payment. You don’t have to apply for the CAIP; if you qualify, the Canada Revenue Agency will automatically enroll you based on your annual income tax return information…

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