What is the Schedule 14, or Climate Action Incentive (CAI)?

The CAI is introduced for the 2018 and subsequent tax years to return the proceeds expected from the federal pollution pricing system to residents of the provinces from which proceeds are generated.

Who is eligible?

This federal payment is available only to residents in New Brunswick, Ontario, Manitoba, and Saskatchewan on December 31 of the year, these being the jurisdictions where the federal pollution pricing system is being imposed.

How does it work?

ProFile will calculate the amount of CAI for eligible individuals and their spouse provided that they meet the basic conditions, and who are confirmed at the onscreen checkboxes as meeting the rest of the of the conditions to qualify for the credit. The CAI may be claimed by either spouse for the family, but cannot be claimed on both returns. Indicate which return you wish to claim the CAI at the onscreen checkbox.

The amounts for eligible dependants will calculate provided that the dependant meets the basic conditions, and are confirmed on the Dependant worksheet as meeting all of the conditions to qualify for the credit. On the Dependant worksheet, also indicate whether the dependant is claiming the CAI on their own return (for linked returns, this will change automatically). If the CAI is claimed on the dependant’s return, the individual will not be able to claim the amount for the dependant.

The CAI will include a supplementary amount for people who live in rural areas, in recognition of their increased energy needs and reduced access to energy-efficient transportation options. Rural areas will be defined as anywhere within the province that is “outside of a census metropolitan area (CMA), as defined by Statistics Canada. To claim the supplement, answer “Yes” at Line 6014.

The following fields are on the new Schedule 14:
 
6010 Climate action incentive – Base amount
6011 Climate action incentive – Amount for an eligible spouse or common-law partner
6012 Climate action incentive – Amount for a single parent’s qualified dependant
6013 Climate action incentive – Number of qualified dependants
6014 Climate action incentive – Do you reside outside of a census metropolitan area on December 31 of the current tax year, as defined by Statistics Canada?