Climate Action Incentive (CAI)

CAI – is a special tax credit that every Canadian must claim on his or her tax return application for his or her taxes. This program was started in 2018 for residents of Manitoba. The same program then followed for a reward for New Brunswick residents, and a year later, cities like Alberta, Ontario and Saskatchewan joined in to claim it for Canadian citizens. 

What is this payment about? Every province in Canada is subject to a carbon tax on every resident. It’s a fuel surcharge. All Canadian residents have to pay it when they fill up their cars or home heating. 

This tax is a way for the government to get local residents to care about the environment and a cleaner environment, and it greatly improves the country’s economy. 

The CAI offsets the cost of the tax, which is related to carbon dioxide emissions and allows residents to recoup some of the money for fuel-related expenses. 

If residents claim this benefit option on their income tax return, this amount will be included in their annual tax refund. 

Who can get CAI benefits?

All Canadian citizens are required to know that only one family member is eligible for this type of benefit. That is, if you are married, either he/she or you are eligible to get these benefits. In a married couple, it must be someone alone. To be eligible, you must file a tax return year to year, you must be of legal age, and you must be a resident of Alberta, Manitoba, Ontario or Saskatchewan. 

If your children are 18 years old AND they live with you at the time of application and are totally under you, they can also be considered as applicants for the CAI program by filing their tax returns. Each parent can also file on behalf of their children. To do so, the parent must apply for assistance under conditions such as that the child is under the age of majority, is your dependent, resides in the same area as you, are not married, and is not a live-in parent. 

Who is not allowed the CAI benefits?

The CAI program also has special requirements that may disqualify you from receiving benefits and not be paid to certain individuals. 

For example, residents who are not residents of Canada are incarcerated or detained for more than 90 days. Also, residents with special CSA child support status, civil or foreign government officials will not receive benefits. 

These rules apply to anyone who is willing to make a payment from the CAI program by applying for and indicating tax payments, including your spouse or common-law partner or a dependent child over the age of 18. 

Amount of CAI program money for residents

This tax payment depends on where the applicant resides, their living territory and citizenship status, marital status, and how much people live in the family and dependent children.