As announced on December 3, 2021, the Climate Action Incentive (CAI) will be delivered quarterly, starting in July 2022. The CAI will no longer be paid as a refundable credit on the T1 return.
CAIP will be delivered at the beginning of each quarter. To give the Canada Revenue Agency (CRA) sufficient time to develop the new system, payments will start in July 2022 with a “double-up” payment. This payment would return proceeds from the first two quarters of the 2022-23 fuel charge year (April 2022 to March 2023). The CRA will determine the actual payments for each quarter based on the information they have on file at the time.
Only one person can receive the credit for the family. The credit will be paid to the spouse or common-law partner whose tax return is assessed first. No matter which person receives the payments, the total amount will be the same.
For more information see Climate action incentive payment on the CRA website.
In TaxCycle T1 2021, you will notice the following changes related to the CAI and Schedule 14 (S14):