The Climate Action Incentive Payment (CAIP) is a tax-free amount paid to help individuals and families offset the cost of federal pollution pricing. It is available to residents of Alberta, Saskatchewan, Manitoba, Ontario, Nova Scotia, Prince Edward Island, Newfoundland and Labrador, and New Brunswick. The CAIP is a quarterly benefit paid to eligible residents, and it consists of a basic amount and a supplement for residents of small and rural communities. The amount of the payment varies depending on the province and the number of eligible family members. The CAIP was previously a refundable tax credit claimed annually on personal income tax returns, but starting in July 2022, the government changed it to quarterly tax-free payments made through the benefits system. Eligibility for the CAIP is determined by the Canada Revenue Agency (CRA) when individuals file their income tax and benefit return, and payments are sent automatically to eligible recipients. If individuals are registered for direct deposit, they will see these payments in their bank accounts as “Climate Action Incentive” .