what is canadian cai

The Canadian Climate Action Incentive (CAI) payment is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland & Labrador, Nova Scotia, and Prince Edward Island. The CAI consists of a basic amount and a supplement for residents of small and rural communities. The payment was previously a refundable tax credit claimed annually on personal income tax returns, but starting in July 2022, it is now delivered quarterly as tax-free payments made through the benefit system. The amount of the payment varies depending on the province and household size. To be eligible for the CAI, individuals must file a tax return, and the CRA will assess their eligibility. Newcomers to Canada, including permanent residents, refugees, and temporary residents, are also eligible for the CAI, but they need to apply for it.