On our personal tax returns for last year and the year previous, we saw that we had a climate action incentive credited to our personal tax account. This was great as it reduced what we owed or increased our refunds immediately.

For most people, it meant $490 for the 2020 tax year and for some $539 if they resided outside of a census metropolitan area. This rebate is for people from Alberta, Saskatchewan, Ontario, or any province that has not adopted the federal carbon tax measures. No longer will it be an addition on your tax return. Instead, it's going to be paid to you in quarterly installments.

According to the Canada Revenue Agency's website, the first installment will be July of 2022, with a retroactive payment for the first quarter of 2022. If you're just a single person, you’d get $490, plus the 10% if you don't live in a metropolitan area. In Alberta, metropolitan areas are defined as the Lethbridge, Calgary, and Edmonton areas and their surrounding communities. People living in, say, the Medicine Hat area would qualify for the extra 10% climate action incentive, as it’s not considered a metropolitan area. 

All you have to do for your 2021 tax return is check the box that says that you are applying for the climate action incentive and you will qualify and be paid for the climate action incentive on a quarterly basis. Your first cheque will be - if you're a single person - somewhere around that $250 mark for the April and July quarters. If you do not file your personal tax return, you will not get the climate action incentive until you do.