Residents in Ontario will likely notice a deposit of cash into their bank accounts, it’s part of a new climate incentive program.
The Climate Action Incentive Payment will start as of July 15.
Ontario families of four can expect to receive a payment of $745; with those living in rural and small communities are eligible for an extra 10 per cent.
The payments will then follow a quarterly payment structure, with the first payment will be a “doubled-up” payment, with the next one coming through in October 2022 and then again in January 2023. Previously, this payment was a lump sum on annual tax returns.
Payments are tax-free, and won’t be counted as income on your tax return.
The Ontario program provides an annual credit of :
- $373 for an individual
- $186 for a spouse or common-law partner
- $93 per child under 19
- $186 for the first child in a single-parent family
Full details of the incentive program can be read here.
The money comes from “regulatory fee or tax levied on the carbon content of fuels at the Canadian provincial, territorial or federal level“.