Rural supplement for Climate Action Incentive Payment to be increased to 20%

Residents of Ontario, Nova Scotia, New Brunswick, Manitoba, Prince Edward Island, Saskatchewan, Alberta, and Newfoundland and Labrador receive a Climate Action Incentive Payment (CAIP) from the federal government four times a year. The amount of the CAIP varies by province, but in all provinces an additional amount (the rural supplement) equal to 10% of the general incentive payment is provided to residents of more remote communities.

The federal government has announced that the rural supplement will be increased to 20% of the general incentive payment, beginning with payments made in April 2024. That increase in the rural supplement will be permanent.

The announcement of the increase can be found on the federal government website at https://www.canada.ca/en/department-finance/news/2023/10/lowering-energy-bills-for-canadians-across-the-country.html, and details of the Climate Action Incentive payment program are available on the same website at https://www.canada.ca/en/revenue-agency/services/child-family-benefits/cai-payment.html.

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.