What is the Canada Carbon Rebate?

The Canada Carbon Rebate (CCR), formerly known as the Climate action incentive payment (CAIP), is a quarterly benefit for residents of Alberta, Manitoba, Ontario, and Saskatchewan and as of July 1, 2023, in Newfoundland and Labrador, Nova Scotia, and Prince Edward Island paid to help offset the cost of the federal pollution pricing.

Prior to 2021, this benefit, known as the CAIP, was a refundable tax credit claimed annually on personal income tax returns.

Do I need to apply for the Canada Carbon Rebate?

When you file your return, the CRA will automatically determine your eligibility and tell you if you are entitled to receive the benefit.

The CCR however includes a supplement for residents of small and rural communities. To claim the rural supplement, answer “Yes” to the question “Do you live outside of one of these census metropolitan areas…” in the Canada Carbon Rebate section in About You.

If you have a partner, either one of you may receive the payment, but not both of you. The payment will be paid to the person whose return is assessed first.