What is the Climate Action Incentive (CAIP)?

The climate action incentive is a tax free amount paid to individuals and families to provide relief for some of the costs associated with the Government of Canada climate and pollution initiatives. The incentive is available for the residents of Alberta, Saskatchewan, Manitoba and Ontario and it consists of a basic amount and a supplement for residents of small and rural communities.

Until the 2020 tax year, the incentive was a refundable tax credit claimed annually on T1 Individual tax return. As of 2021, the CAIP will be paid as a quarterly benefit.