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Claim the Climate Action Incentive – Carbon Tax Rebate 2019

The Climate Action Incentive (CAI) tax credit is intended to offset the Federal Carbon Tax (called a “Fuel Charge”) which begins April 2019.

Net Impact of the Climate Action Revenue Incentive Program & Carbon Tax Rebate

After paying the fuel charge, and receiving the Climate Action Incentive credit the government estimates that the average Canadian household of a family of 4, will actually be better off and receive about $46 to $195 dollars.

The federal government estimates that the average household will receive an incentive of:

  • $598 in Saskatchewan
  • $336 in Manitoba
  • $300 in Ontario
  • $248 in New Brunswick

Residents in more rural areas will receive 10% more than residents who live in cities.  This was explained by the government as being due to the fact that rural Canadians use more energy and that do not have as many public transportation options as city-dwellers have available to reduce their fuel consumption.

What the Climate Action Revenue Incentive Program is

As part of the Government of Canada’s Climate Change Plan, residents of New Brunswick, Ontario, Manitoba and Saskatchewan will receive a new tax credit called the Climate Action Incentive (CAI) when they file their 2018 income tax returns.

The “fuel charge” will be added to the cost of gasoline, so gas prices will increase, and it will be added to the cost of residential heating, so home heating bills will also increase on April 1st, 2019.  The CAI is intended to offset these tax increased and lessen the impact to Canadians.

The federal government has determined that rather than assessing the Federal Carbon Tax in the form of an additional tax increase, by adding it to the cost of your gas when you fill up at the pumps and adding it to home heating bills, it essentially hides the impact, and the credit offsets that increase.

Eligibility

In order to receive the Climate Action Incentive tax credit you have to file your 2018 personal income tax return.

Non-residents of Canada or Canadians who were incarcerated at any point in the year are not entitled to the credit.

How Much is the Climate Action Incentive?

The amount you receive is based on the size of your family, so you just have to decide which family member will apply for the credit (one credit per household allowed), and the credit will be added directly on to your tax return.

How To Claim the CAI Tax Credit/Carbon Tax Rebate 2019:

If you are using any TurboTax products, once you input your basic personal information, the credit is immediately added to your return and you should see it in the top left corner of your return.  If you do not, don’t worry, you will see if as you look at your tax summary near the end of your return.

Provincial breakdown based on household size:

New Brunswick

  • $128 for a single adult or the first adult in a couple
  • $64 for the second adult in a couple, or, in the case of single parents, for their first child
  • $32 for each child in the family beginning with the second child for single parents
  • A family of four will receive $256.

Ontario

  • $154 for a single adult or the first adult in a couple
  • $77 for the second adult in a couple, or, in the case of single parents, for their first child
  • $38 for each child in the family starting with the second child for single parents
  • A family of four will receive $307.

Manitoba

  • $170 for a single adult or the first adult in a couple
  • $85 for the second adult in a couple, or, in the case of single parents, for their first child
  • $42 for each child in the family starting with the second child for single parents
  • A family of four will receive $339.

Saskatchewan

  • $305 for a single adult or the first adult in a couple
  • $152 for the second adult in a couple, or, in the case of single parents, for their first child
  • $76 for each child in the family starting with the second child for single parents
  • A family of four will receive $609.

Why Some Provinces Only?

If you do not live in Manitoba, Ontario, Saskatchewan or New Brunswick, you will not be getting the CAI Tax credit because residents of all other provinces are not being charged the fuel charge thus are not eligible for the CAI offset credit.