The Climate Action Incentive Payment (CAIP) is a tax-free amount paid to help individuals and families offset the cost of the federal pollution pricing in Canada. It is available to eligible residents of Alberta, Saskatchewan, Manitoba, and Ontario, and starting in July 2023, residents of New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island will also be eligible. The payment is made in four quarters of a year, and the amount received depends on factors such as family size and province of residence. The CAIP is not something that individuals need to apply for separately, as the Canada Revenue Agency (CRA) will determine eligibility when individuals file their income tax and benefit return and will send payments if they are entitled to them. If individuals are registered for direct deposit, they will see these payments in their bank accounts as “Climate Action Incentive” (wording may vary based on financial institution) .