The Canada Climate Action Incentive (CAI) payment is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland & Labrador, Nova Scotia, and Prince Edward Island. The CAI consists of a basic amount and a supplement for residents of small and rural communities. The payment method for the CAI has changed from a refundable credit claimed annually on personal income tax returns to quarterly tax-free payments made through the benefit system starting in July 2022. The CAI payment amounts have been adjusted in each jurisdiction to account for over-distributions of proceeds in previous years. The baseline amount for a family of four ranges from $976 in Ontario to $1,544 in Alberta. To be eligible for the CAI, individuals must file their income tax and benefit return, and the CRA will assess their eligibility. Newcomers to Canada including permanent residents, refugees (protected persons), and temporary residents (including student, worker, or temporary resident permit holders) are also eligible for CAI, but they will need to apply for it.