The Canada CAI refers to the Climate Action Incentive payment, which 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 Government of Canada has changed the payment method for the CAI 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 vary between provinces and household size. The baseline amount for a family of four living in Ontario, for example, is $488 for individuals, $244 for a spouse or common-law partner, and $122 per child under 19. To be eligible for the CAI, you must be a resident of Canada and a resident of an eligible CAIP province on the first day of the payment month.