Residents in Saskatchewan can expect to see a nice surprise in their bank accounts this morning, thanks to the first installment of the Climate Action Incentive Payment (CAIP).
CAIP is a tax-free payment designed to offset the cost of the federal pollution pricing.
The payment is a basic amount, as well as a supplement for residents of small and rural communities. It is available to residents of Saskatchewan, Alberta, Manitoba, and Ontario.
In previous years, the CAIP was handed out as a refundable credit that could be claimed annually on personal tax returns, called the Climate Action Incentive (CAI).
The change from CAI to CAIP will see quarterly tax-free payments made through the benefit system as of today.
In Saskatchewan, the program provides an annual credit of:
$550 for an individual
$275 for a spouse or common-law partner
$138 per child under 19
$275 for the first child in a single-parent family
The Climate Action Incentive also has a 10% supplement for residents of small and rural communities.
To be eligible, individuals must be a resident of Alberta, Saskatchewan, Manitoba, or Ontario, as well as meet at least one of the following criteria:
are 19 years of age or older
have (or previously had) a spouse or common-law partner
are (or previously were) a parent and live (or previously lived) with their child
Those who are entitled to receive the CAIP can expect to receive the payment on or around the 15th of April, July, October, and January.
The first payment is scheduled to be issued today as long as the individual’s 2021 Income Tax and Benefit return is processed. If they are entitled, the first payment will be issued today and will include a retroactive amount for April 2022.