All You Need To Know About Climate Action Incentive Payment—Canada Carbon Rebate

What is the Canada Carbon Rebate payment?

The Canada Carbon Rebate (CCR) is money that some Canadians receive from the government to offset costs related to the federal carbon tax.

Why does it exist? Climate change is an issue that affects all Canadians and fighting it means reducing our national carbon emissions substantially—and quickly. To help in this effort, in 2019 the federal government introduced the federal fuel charge, aka the carbon tax, which raises the price of some carbon-emitting purchases you might be making, like fueling up your car.

While this charge might make some things more expensive for you and your family at point of purchase, the good news is, you’ll probably get money back to compensate. The federal government isn’t keeping revenue from the carbon tax: 10% is earmarked for small businesses and Indigenous groups, and the remaining 90% is going right back into your and your neighbours’ pockets, in the form of the CAIP. In fact, most people will actually get back more than they pay. (The specifics depend on where you live—see below.)

Who receives the CCR?

The CCR is a federal program, but it applies only to jurisdictions that don’t have their own carbon pricing system. If you’re a resident of Quebec or British Columbia, you won’t receive the CCR because your province has its own system in place. If you live in the Northwest Territories, Nunavut, or Yukon, you get a territorial rebate, not the CAIP.

That leaves the remaining eight provinces: Alberta, Manitoba, Ontario, and Saskatchewan have been part of the CCR since the beginning and continue to be (although, this program is called the “carbon tax rebate” in Alberta); and, on July 1, 2023, the Maritime provinces joined the party. (Is it a kitchen party? Depends on what you do with the cheque.)

You’re eligible for the CCR under the following conditions:

• You’re a resident of Canada for income tax purposes.
• You’re a resident of a participating province.
• You meet at least one of the following criteria:
  • You’re at least 19 years old in the month the payment goes out.
  • You have (or previously had) a spouse or common-law partner. 
  • You are a parent of at least one child who lives with you (or has lived with you).

If you’re a parent with at least one child living with you, you must be their primary parent to receive their full CAIP allocation and they must be registered under the Canada Child Benefit plan (CCB).

If you don’t have full custody of your child/children, you can still get 50% of the CCR amount that you’d get if your child lived with you full-time.

There are four payments a year, and to get a payment, you have to meet these conditions at the beginning of the payment month. For example, if you turned 19 in August, you would get the following October payment, but not the previous July payment.

If you have a spouse or common-law partner, only one of you will receive the CCR on behalf of your entire family. (Note: To receive a payment on your child’s behalf, they must be registered for the CCB.)

How do you apply for the CCR?

The beauty of the CCR (other than, you know, the cash) is that it’s easy to start receiving. So long as you file your taxes every year, you should get the payments automatically.

Are you a newcomer to Canada? If you are a new resident of Canada, follow the steps below to apply for the CCR, completing the following forms: 

• If you have children: 
  • Fill out and sign Form RC66, Canada Child Benefits (CCB) application to apply for all child and family benefits, including the GST/HST credit. 
  • You must also complete form RC66SCH, Status in Canada and Income Information for the Canada Child Benefits (CCB) application to capture your citizenship and residency information, along with your Statement of Income. 
• If you do not have children: 
  • Fill out and sign Form RC151, GST/HST Credit and Climate Action Incentive Payment Application for Individuals Who Become Residents of Canada. Mail the completed form to your tax centre.

If you’re a resident of a small or rural community, you might be eligible for an additional payment called the rural supplement. To get this, make sure to check the relevant box on page two of your income tax and benefit return.

What are the CCR payment dates and amounts?