Canada’s $365 Climate Cash Drop Hits Mid-August – Are You Eligible?

The Canada Carbon Rebate program officially ended in March 2025, with no further quarterly payments scheduled after the final April 2025 distribution. While some sources may suggest ongoing payments, official government communications confirm the program’s termination as part of broader changes to Canada’s carbon pricing policy.

What Happened to the Canada Carbon Rebate Program!

On March 15, 2025, the Government of Canada stopped the federal fuel charge and the Canada Carbon Rebate for individuals. This decision marked the end of a program that had provided quarterly, tax-free payments to millions of Canadian households since 2019.

The program, formerly known as the Climate Action Incentive Payment (CAIP), was designed to return 90% of carbon pricing revenues directly to residents in provinces using the federal carbon pricing system. The final Canada Carbon Rebate payments were sent out beginning on April 22, 2025.

Final Payment Details

If you were eligible to receive the CCR for April 2025 and filed your 2024 income tax return electronically after April 2, 2025, you will receive your final payment once your 2024 return is assessed. Those who haven’t filed their tax returns for 2024, 2023, 2022, or 2021 may still be eligible for payments from applicable base years once their returns are processed.

Who Was Eligible for Final Payments

The program covered residents of eight provinces where the federal carbon pricing system applied:

  • Alberta
  • Saskatchewan
  • Manitoba
  • Ontario
  • New Brunswick
  • Nova Scotia
  • Prince Edward Island
  • Newfoundland and Labrador

Payment Amounts by Province!

The final quarterly payment amounts varied significantly by province and family size:

Province Individual Spouse/Partner Each Child Rural Supplement
Alberta $225 $112.50 $56.25 20%
Ontario $185 $92.50 $46.25 20%
Saskatchewan $213 $106.50 $53.25 20%
Manitoba $150 $75 $37.50 20%
New Brunswick $95 $47.50 $23.75 20%
Nova Scotia $103 $51.50 $25.75 20%
P.E.I. $110 $55 $27.50 Included
Newfoundland $93 $46.50 $23.25 20%

Understanding the Program’s End

Policy Shift Away from Consumer Carbon Pricing

The federal consumer carbon price, specifically the federal fuel charge (FFC), was eliminated effective April 1, 2025. This change represents a significant shift in Canada’s approach to carbon pricing, moving away from direct consumer charges while maintaining industrial carbon pricing systems.

The government indicated that provinces and territories are no longer required to have a consumer-facing carbon price in place, giving provincial governments more flexibility in their climate policies.

Impact on Households

For many Canadian families, the end of the carbon rebate program represents a loss of significant financial support. A typical family of four in Alberta, for example, would have received up to $1,800 annually through the program. The third and fourth quarterly payments for 2025 were cancelled after the Liberal government ended the federal fuel charge and the rebates.

What This Means for Your Finances!

No More Automatic Payments

Unlike previous years when Canadians could expect quarterly payments in January, April, July, and October, there are no further automatic climate rebate payments scheduled. Direct deposit recipients would previously see these payments in their bank accounts labeled as “Canada Carbon Rebate” or “Climate Action Incentive.”

Outstanding Payments

If you believe you’re owed payments from previous years, ensure your tax returns are filed and up to date. The Canada Revenue Agency will continue processing eligible payments for previous base years once tax returns are assessed.

Checking Your Payment Status

Canadians can still check their CRA My Account for any outstanding payments or to verify their final payment was received. If your 2024 tax return has been assessed and you haven’t received the final Canada Carbon Rebate, you can contact the CRA to inquire.

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