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.
CAI payments 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.
In TaxCycle, you will notice the following changes to 2021 T1 returns: