A boosted Canada Carbon Rebate (formerly the Climate Action Incentive Payment) will land in Canadians’ bank accounts Monday after a contentious increase to the carbon price at the beginning of the month.
Most Ontarians will receive at least $140 per quarter from the carbon price rebate, up from $122 last year. The rebate is delivered every three months through deposits as a direct refund for the Liberal government’s carbon levy — a program, often referred to by the opposition Conservatives as a “carbon tax,” that has two components.
The scheme includes a pricing system for carbon-emitting heavy industries and a fuel charge on gasoline and home heating. The quarterly payment in April will hit most Canadians’ bank accounts alongside the yearly increase to the federal carbon levy, from $65 per tonne to $80 per tonne.Â
In Ontario, the carbon pricing program is administered at a federal level, with the federal government returning 90 per cent proceeds from those charges to eligible residents.
Several premiers across the country, including Ontario Premier Doug Ford, called on Prime Minister Justin Trudeau to pause the carbon price increase on April 1.
Residents of Alberta, Saskatchewan, Manitoba and Ontario were eligible when the program first rolled out and the program was expanded in July 2023 to include Newfoundland and Labrador, Nova Scotia, Prince Edward Island and New Brunswick.
To receive the benefit, you must be a resident of a CCR-eligible province on the first day of the payment month. You must also be at least 19 years old. If you are under that age, you must either have (or previously had) a spouse or common-law partner, or are (or previously were) a parent and live (or previously lived) with your child.
How much will I receive in carbon tax rebate credits?
Ontarians eligible for the rebate will receive a base rebate of $140, with an additional $70 for a second adult in the family and $35 for each child under 19. A family of four in Ontario, according to the federal government, would receive $280.
The payments are universal and not dependent on income levels. Here’s how it breaks down by province, for a family of four, per quarter:
Alberta:Â $450
Manitoba:Â $300
New Brunswick: $190
Newfoundland and Labrador:Â $298
Nova Scotia:Â $206
Ontario:Â $280
Prince Edward Island:Â $220
Saskatchewan: $376 (Saskatchewans are not expected to receive the carbon rebate due to the dispute between the federal and provincial governments)
The CCR also includes a 20 per cent supplemental bump (pending royal assent) for residents in small and rural communities, which includes all eligible P. E. I residents, according to the government. However, some rural communities have spoken out about the rules demarcating rural towns, saying the government has unfairly looped them in with nearby cities.
Recipients can also expect quarterly payments in July, October and January 2025.
How do I receive the carbon tax payment?
Eligible CCR recipients should see the credit in the form of a cheque or direct deposit automatically, without needing to apply. Canadians who file their taxes electronically before March 15 should receive their payment on April 15, according to the government’s website. Those filing later can expect their CCR payments six to eight weeks after their tax return is assessed.
If you have a spouse or common-law partner, the person whose tax return was assessed first will receive the total credit for the family. It doesn’t matter which person receives the rebate as the total amount will be the same.
People with tax debt will see the credit automatically subtracted from the amount they owe.
The Canada Revenue Agency noted it may take up to 10 working days to receive a CCR payment.
Correction — March 15, 2024
This article was edited from a previous version that misstated federal carbon levy figures. It will increase from $65 per tonne to $80 per tonne on April 1, and set to rise annually by $15 until 2030.
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