The carbon tax rebate, officially known as the climate action incentive payment (CAIP), is a tax-free payment that helps Canadians offset the cost of the federal pollution pricing and encourages them to take action on climate change. The payment is available to residents of eight provinces where the federal carbon tax applies, and is paid quarterly based on the income tax return. However, in January 2024, the federal government announced that it would change the name of the payment to “Canada carbon rebate” (CCR), starting from the next payment period in February 2024. Why did the government decide to rebrand the payment, and what does it mean for Canadians?

Key Takeaway Box
- The carbon tax rebate, officially known as the climate action incentive payment (CAIP), is a tax-free payment that helps Canadians offset the cost of the federal pollution pricing and encourages them to take action on climate change.
- The federal government announced that it would change the name of the payment to “Canada Carbon Rebate” (CCR), starting from February 2024, to simplify communication and increase public awareness of the payment.
- The name change does not affect the eligibility, amount, or delivery of the payment. Canadians who are eligible for the payment will continue to receive it automatically, based on their income tax return.
- The name change is part of the government’s efforts to promote the benefits of the pollution pricing plan, which aims to reduce greenhouse gas emissions, create jobs in the clean energy sector, and transition to a low-carbon economy.
What is the rationale behind the name change?
According to the government, the main reason for changing the name of the payment is to simplify the communication and increase the public awareness of the payment. The government acknowledged that the previous name, the climate action incentive payment, was too long and complex, and did not clearly convey the purpose and the source of the payment. The government also recognized that many Canadians were confused about the difference between the CAIP and the carbon tax, and did not realize that they were receiving more money back than they were paying in carbon tax. The government hoped that by changing the name to “Canada carbon rebate”, it would make it easier for Canadians to understand that the payment is a direct result of the federal pollution pricing, and that it is a net benefit for most households.
The government also stated that the name change was part of its efforts to promote the benefits of the pollution pricing plan, which aims to reduce greenhouse gas emissions, create jobs in the clean energy sector, and transition to a low-carbon economy. The government argued that by highlighting the link between the carbon tax and the rebate, it would encourage Canadians to support the plan and take action on climate change. The government also claimed that the name change would help to counter the misinformation and opposition from some provincial governments and political parties, who have been challenging the constitutionality and the effectiveness of the federal pollution pricing.
How does the name change affect the payment?
The name change does not affect the eligibility, amount, or delivery of the payment. Canadians who are eligible for the payment will continue to receive it automatically, based on their income tax return. The payment will still be paid quarterly, and will still consist of a basic amount and a supplement for residents of small and rural communities. The payment will still be adjusted annually to reflect the changes in the federal carbon tax rate and the cost of living. The only difference is that the payment will be labelled as “CANADA CARBON REBATE” instead of “CLIMATE ACTION INCENTIVE PAYMENT” on the direct deposit or the cheque.
Province | Single adult or first adult in a couple | Second adult in a couple or first child of a single parent | Each child under 18 (maximum of 4 children) | Single parent or couple with 2 children |
---|---|---|---|---|
Alberta | $1,000 | $500 | $250 | $2,000 |
Saskatchewan | $1,000 | $500 | $250 | $2,000 |
Manitoba | $750 | $375 | $188 | $1,500 |
Ontario | $750 | $375 | $188 | $1,500 |
New Brunswick | $750 | $375 | $188 | $1,500 |
Nova Scotia | $750 | $375 | $188 | $1,500 |
Prince Edward Island | $750 | $375 | $188 | $1,500 |
Newfoundland and Labrador | $750 | $375 | $188 | $1,500 |
How to get the Carbon Tax Rebate/CCR payment?
To get the CCR payment, you need to file your income tax return and claim the payment on your return. You can do this online using certified tax software or on paper using the forms and guides provided by the Canada Revenue Agency (CRA). You will need to provide your personal information, such as your name, address, date of birth, social insurance number, and marital status. You will also need to provide information about your family members, such as their names, dates of birth, and social insurance numbers. If you are eligible for the supplement for residents of small and rural communities, you will need to tick the corresponding box on your return, with the exception of Prince Edward Island residents. In Prince Edward Island, all individuals receive the supplement amount, and are not required to indicate this on their return.
The deadline to file your income tax return and claim the CCR payment is April 30, 2024. However, you can file your return as early as February 2024, once you receive all your tax slips and receipts. The sooner you file your return, the sooner you will receive your CCR payment. The CRA will process your return and calculate your CCR payment based on the information you provide. If you are eligible for the payment, you will receive it within eight weeks of filing your return. If you file your return online and sign up for direct deposit, you may receive your payment faster.
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Conclusion
The CCR is a tax-free payment that helps Canadians offset the cost of federal pollution pricing and encourages them to take action on climate change. The payment is available to residents of eight provinces where the federal carbon tax applies and is paid quarterly based on the income tax return. The federal government announced that it would change the name of the payment from the CAIP to the CCR, starting from February 2024, to simplify communication and increase public awareness of the payment. The name change does not affect the eligibility, amount, or delivery of the payment. The name change is part of the government’s efforts to promote the benefits of the pollution pricing plan, which aims to reduce greenhouse gas emissions, create jobs in the clean energy sector, and transition to a low-carbon economy.
Source: (1) GST/HST credit – Payment dates – Canada.ca. https://www.canada.ca/en/revenue-agency/services/child-family-benefits/gsthstc-payment-dates.html. (2) Benefit payment dates – Canada.ca. https://www.canada.ca/en/revenue-agency/services/child-family-benefits/benefit-payment-dates.html.