Your bank account could be getting a helpful boost from the federal government this month as carbon price rebates roll out to more provinces.
Driving the news: Canadians in Newfoundland & Labrador, Nova Scotia, and Prince Edward Island are now eligible for Climate Action Incentive Payments (AKA: the CAIP or carbon price rebate) as of July 1st.
- Until now, only residents in Alberta, Saskatchewan, Manitoba, and Ontario were eligible for these payments.
- You can receive these payments either through direct deposit or by mail. If you have a spouse or common-law partner, only one of you will receive the payment.
Catch up: Since 2019, the Government of Canada has tried to reduce carbon emissions by putting a price on pollution, starting at $20 per tonne. The price as of 2023 is $65 – with yearly increases expected from 2023 to 2030.
- The Government gives provinces leeway to implement carbon pricing depending on their specific needs. That’s why, depending on where you live, you may (or may not) receive the payment.
Why it’s happening: The CAIP is a tax-free rebate paid to individuals and families in order to help them offset the impact of the carbon tax.
- Rebates are expected to rise as the price on carbon emissions increases yearly.
Why it matters: The rebate could help you offset the climbing costs that come with the government’s carbon tax, but how much you get will vary depending on where you live and how much you earn.
- Each quarter, a family of four in Alberta could receive $386; in Saskatchewan, $340; in Manitoba, $264; and in Ontario, $244. Residents of small towns and rural communities could also receive a 10% top-up on their rebates.
- Starting this month, a family of four in Newfoundland & Labrador could receive $328; in Nova Scotia, $248; and in Prince Edward Island, $240.
Bottom Line: How much you stand to receive from the carbon price rebates depends on a variety of factors, and whether you actually come out ahead is still a matter of debate. Find out more about eligibility requirements here.