The Climate Action Incentive (CAI) payment 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 residents of Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, Prince Edward Island, and Newfoundland & Labrador. The CAI payment consists of a basic amount and a supplement for residents of small and rural communities. The amount you receive depends on your family situation and the province you reside in. The payment for the CAI will be universal and therefore not subject to a benefit reduction based on adjusted family net income. The CAI payment was previously a refundable tax credit claimed annually on personal income tax returns, but starting in July 2022, it is now a quarterly tax-free payment made through the benefit system. To receive the CAI payment, individuals still need to file a tax return. The CAI payment is designed to return the proceeds from the fuel charge to residents of the provinces who use the federal system of carbon pollution pricing.