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. It is available to eligible residents of Alberta, Saskatchewan, Manitoba, and Ontario, and starting July 1, 2023, residents of Newfoundland and Labrador, Nova Scotia, and Prince Edward Island will also be eligible. The CAIP consists of a basic amount and a 10% supplement for residents of small and rural communities. The Government of Canada 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. If you are registered for direct deposit, you will see these payments in your bank accounts as “Climate Action Incentive” (wording may vary based on financial institution) .