Climate Action Incentive

On January 1, 2020 the federal government instituted a carbon tax in Alberta. To help offset the amounts paid, they have also introduced the Climate Action Incentive for Alberta residents. 


Alberta is not the only province that this incentive has been introduced in. Residents in Saskatchewan, Manitoba, and Ontario will also see it this year. For the interests of the post however, it will only be referencing the Albertan incentive. 


You access this incentive when you are filing your 2019 tax return. Each family will be able to claim it once. By including this in your taxes, it ensures accurate and quick processing. It will also make sure that everyone will receive it, as everyone needs to file taxes! 


The incentive will be paid in a tier system, with larger families receiving more: 


  • $444 for single adults, or the first adult in a couple
  • $222 for the second adult in a couple, or the first child of single parent
  • $111 for each child in the family, or the second child on for single parents


If you are resident of a small or rural community, defined as anywhere out of a census metropolitan area (Alberta has three census metropolitan areas, Edmonton, Calgary, and Lethbridge), you are eligible for an extra 10% payment amount. This is to reflect the extra energy needs of those outside of major cities. You will need to indicate on your tax return if this is applicable to you. 


The amount of the Climate Action Incentive will change annually, based on the amounts of the federal carbon tax. Most Albertans are calculated to receive more back from this incentive than they will pay towards the carbon tax.


If you have any addition questions, you can ask your tax preparer, or check out the CRA website here