Climate Action Incentive Payment (CAIP) Explained

This program has been discontinued. The Climate Action Incentive Payment (CAIP) — renamed the Canada Carbon Rebate (CCR) — was a tax-free quarterly benefit that helped Canadian families offset the cost of the federal carbon pricing system. On March 15, 2025, the federal government eliminated the consumer carbon fuel charge that funded it, and the CRA confirmed there would be no further quarterly payments after the April 2025 instalment. The description below explains how the program worked while it was active; if you’re looking for a payment schedule going forward, there isn’t one — this benefit no longer exists.

How CAIP Worked

The federal government collected revenue through carbon pricing (the fuel charge on fossil fuels). The CAIP returned the bulk of this revenue directly to residents of applicable provinces. The goal was to make carbon pricing revenue-neutral for most households — meaning the average family received back more than they paid in increased costs.

Provinces That Were Eligible

CAIP was available to residents of provinces where the federal fuel charge applied:

• Alberta
• Saskatchewan
• Manitoba
• Ontario
• New Brunswick
• Nova Scotia
• Prince Edward Island
• Newfoundland and Labrador

British Columbia and Quebec operated their own carbon pricing systems and were never part of the federal CAIP program.

Final Payment Amounts (2024 Base Year)

The only payment made under the “2024 base year” rates was a single instalment in April 2025 — the program closed before any further quarterly payments went out. The final quarterly amounts for a single adult were:

A family of four in Alberta received approximately $456 in that final April 2025 payment (before any rural supplement) — not an ongoing annual amount.

Rural Supplement

Residents of small and rural communities received a 20% supplement on top of the base CAIP amount, determined by postal code and census metropolitan area data. This supplement ended along with the rest of the program.

Who Was Eligible (While the Program Existed)

To receive the CAIP, you had to:

• Be a Canadian resident for income tax purposes
• Live in an eligible province on the first day of the payment month
• Be 19 years of age or older, or be (or have been) married or a common-law partner, or be a parent who lives with their child

What to Do Now

There is nothing to sign up for — the CAIP/CCR no longer exists. If you were eligible but never filed your 2021–2024 tax return(s), you may still be able to claim a retroactive payment once CRA assesses the return; see the CRA’s Canada Carbon Rebate page for details. Direct deposit information you had on file with CRA is still used for other benefits (CCB, GST/HST credit/CGEB, tax refunds).

Impact on Other Benefits

CAIP is non-taxable and does not count as income for any purpose. It does not affect:

• Income-tested benefits like the GST/HST credit, CCB, or GIS
• Your tax bracket or marginal rate
• Any deductions or credits on your return

Why You Might Not Have Received the Final Payment

Common reasons someone eligible didn’t receive the April 2025 final payment:

1. They did not file a tax return — the CRA could not calculate eligibility without a return
2. They had moved to a non-eligible province — BC and Quebec were never part of the federal CAIP program
3. Their direct deposit information was outdated
4. They were under 19 and did not meet the exception criteria

If any of these applied to you and you file the outstanding tax return now, the CRA can still issue a retroactive payment for years the CCR was active (2021–2024 base years).

Sources

• CRA — Canada Carbon Rebate (CCR), formerly the Climate Action Incentive Payment (CAIP) — program closed
• Government of Canada — Carbon pollution pricing