Federal Government Distributes First Carbon Tax Rebate of 2024

The federal government is set to distribute the first Climate Action Incentive payment of 2024 starting Monday. This rebate, tied to the federal carbon tax, will be provided to eligible Canadians residing in provinces where the tax is implemented.

Residents in Alberta, Ontario, Manitoba, Saskatchewan, New Brunswick, P.E.I, Nova Scotia, and Newfoundland and Labrador, as long as they have filed their income tax and benefit returns, will automatically receive the rebate through direct deposit or by cheque. However, British Columbia, Quebec, and the Northwest Territories do not participate in the federal carbon pollution pricing system, making their residents ineligible for the rebate.

The rebate amount varies based on the household size. According to Environment and Climate Change Canada (ECCC), a family of four in New Brunswick will receive $92. For individuals in New Brunswick, the rebate will be $46, or $23 per child under 19.

In Alberta, individuals can expect a rebate of $193, while a spouse or common-law partner will receive $96.50. Additionally, $48.25 will be provided per child under 19. These amounts reflect the pollution price rebate distributed by the federal government.

Prime Minister Justin Trudeau previously announced the inclusion of a 10 percent supplement for residents in small and rural communities as part of the carbon pricing plan. However, in April 2024, this supplement will be doubled to 20 percent. The increase aims to acknowledge the higher energy needs and limited access to cleaner transportation options in these jurisdictions.

The Environment and Climate Change Canada (ECCC) manages the distribution of the rebate and ensures that eligible Canadians receive their entitled payments. By incentivizing individuals to offset living costs and transition towards cleaner technologies, the federal government aims to combat climate change.