Costs and Rebates: FEDERAL CARBON TAX

On December 16, 2019, the Department of Finance announced the climate action incentive payment amounts for 2020. These payments are associated with the provinces that are subject to the federal backstop legislation. The following amounts may be claimed on the 2019 personal tax returns:

Category Ontario Manitoba Saskatchewan Alberta
Single adult/first adult in a couple $224 $243 $405 $444
Second adult in a couple or first child of a single parent $112 $121 $202 $222
Each child under 18 not already included above $56 $61 $101 $111
Baseline example for family of four $448 $486 $809 $888

A 10% supplement is available for those that live in rural areas (communities outside of census metropolitan areas, CMAs).

The 2020 climate action incentive payment payable to eligible Albertans will reflect fuel charge proceeds generated over a 15-month period. This consists of three months (January – March 2020) with a carbon price of $20 per tonne, plus 12 months (April 2020 – March 2021) with a carbon price of $30.

Also note that no federal incentive payments will be available for residents of New Brunswick this year since it will introduce a provincial program commencing on April 1, 2020 which removes the applicability of the federal backstop legislation.

ACTION ITEM: Ensure that changes in family status (marriage, new children etc.) are included in your 2019 personal tax return to get the full benefit of the program. Also note that most other provinces have similar rebate/incentive programs in place.

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