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 residents of Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, Prince Edward Island, and Newfoundland & Labrador. The CAIP consists of a basic amount and a supplement for residents of small and rural communities. The government of Canada has changed the payment method for the CAIP 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 amount you receive depends on your family situation and the province you reside in. The payment for the CAIP will be universal and therefore not subject to a benefit reduction based on adjusted family net income. The CAIP can’t be claimed as a lump sum refundable tax credit as of tax year 2021. Instead, you’ll receive tax-free payments in April, July, October, and January. The CAIP amount will depend on the province you live in, your marital status, and the number of children in your family.