How has the Climate Action Incentive (CAI) changed...

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How has the Climate Action Incentive (CAI) changed in 2021?

The Climate Action Incentive (CAI) is a payment introduced in 2018 by the Government of Canada to offset the impact of carbon pollution tax increases on Canadians. We’ve gathered up-to-date information on CAI eligibility and payment amounts to help you complete your 2020 tax return.

For 2020 tax returns filed in 2021 or later, the CAI is available to residents of Ontario, Manitoba, Saskatchewan, and Alberta. Other provinces are part of the federal carbon pollution pricing system and are therefore not eligible to receive this payment. New Brunswick residents are no longer entitled to the CAI.

One payment is allowed per household. You can claim the payment if, on December 31, 2020, you were:

  • A resident of Ontario, Manitoba, Saskatchewan, or Alberta
  • At least 18 years old, or
    • Had a spouse or common-law partner, or
    • Lived with your child

You must not, at any time in 2020, have been: 

You may also be eligible to claim an amount for other family members. Learn who you can claim for by exploring the links below.

To claim for your spouse or common-law partner, you must have been married or in a common-law relationship on December 31, 2020.

Your spouse or common-law partner must not, at any time in 2020, have been:

  • A non-resident of Canada
  • In prison for more than 89 days
  • A foreign diplomat
  • Receiving a children’s special allowance

You can claim for your child or dependant (or that of your spouse/common-law partner) if, on December 31, 2020, they were:

  • Dependent on you (or your spouse/common-law partner) for support
  • Living with you
  • Under 18 years old
  • Not married or in a common-law relationship
  • Not a parent living with their child

The child or dependant must not, at any time in 2020, have been:

  • A non-resident of Canada
  • In prison for more than 89 days
  • A foreign diplomat
  • Receiving a children’s special allowance

To claim for your child or dependant as a single parent, you must, on December 31, 2020, have:

  • Not been married or in a common-law relationship
  • Had a child or dependant who meets the conditions of a qualified dependant (see above)

The CAI payment consists of a basic amount that varies by province, plus a 10% supplement for residents of small and rural communities. To claim the supplement, you must have lived in an eligible area on December 31, 2020.

Explore the following links to see the basic payment amounts for your province.

  • $300 for a single adult, or the first adult in a couple
  • $150 for the second adult in a couple, or the first child of a single parent
  • $75 for each child under 18 (starting with the second child for single parents)
  • Example: $600 for a family of four
  • $360 for a single adult, or the first adult in a couple
  • $180 for the second adult in a couple, or the first child of a single parent
  • $90 for each child under 18 (starting with the second child for single parents)
  • Example: $720 for a family of four
  • $500 for a single adult, or the first adult in a couple
  • $250 for the second adult in a couple, or the first child of a single parent
  • $125 for each child under 18 (starting with the second child for single parents)
  • Example: $1,000 for a family of four
  • $490 for a single adult, or the first adult in a couple
  • $245 for the second adult in a couple, or the first child of a single parent
  • $123 for each child under 18 (starting with the second child for single parents)
  • Example: $981 for a family of four

If eligible, you can claim your CAI payment on T1 line 45110 of your 2020 personal income tax return. As only one payment is allowed per household, decide which family member will apply and the payment will be added directly to their return.

Learn how to make your claim on TurboTax Online or TurboTax CD/Download:

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