As tax season approaches, there may be an additional incentive to make your tax return a little larger.
As part of the Government of Canada’s climate change plan, a handful of provinces (including Manitoba) will be eligible for the Climate Action Incentive, a tax credit designed to help the environment and give back to Canadian families. Learn about the Climate Action Incentive in Manitoba including who is eligible and the 2021 payment amounts.
What is the Climate Action Incentive?
The Climate Action Incentive was created in tandem with the federal carbon tax, or “fuel charge.” This carbon tax is added directly to your gas and home heating bills with the hopes of encouraging Canadians to make more eco-friendly choices, reducing emissions and pollution.
The Climate Action Incentive (CAI) is meant to offset the cost of the federal carbon tax by giving back to Canadians in the form of a tax credit. The payment consists of a base amount plus a 10% supplement for residents of small and rural communities. The CAI will either reduce what you owe on your tax return or increase your tax refund.
How do you get a Climate Action Incentive?
The CAI is open to residents of Alberta, Saskatchewan, Ontario and Manitoba. Only one person per family (either you, your spouse or common-law partner) can claim the credit and you must be 18 years of age or older. If you’re younger than 18, you can claim the credit only if you have a spouse or common-law partner or are a parent who lives with your child.
You may also be eligible for a 10% supplement if you live in a small or rural community in the province. Visit the Government of Canada website to find out if you qualify.
What are the payment amounts for 2021?
Each CAI payment depends on your province and your personal living situation. Here are the estimated payments in Manitoba, excluding the 10% supplement.
- Basic amount (first adult): $360
- Spouse or common-law partner amount: $180
- Qualified dependant amount (child): $90
- Single parent’s qualified dependent amount: $180
Your CAI amount will be calculated based on your living situation. For example, a Manitoba family of four would receive a $720 credit.
Here’s the breakdown:
$360 (first adult) + $180 (spouse) + $90 (child) + $90 (child) = $720 total credit
How do I claim the Climate Action Incentive payment?
You can claim your CAI payment in three easy steps.
- Complete your 2020 income tax and benefit return
- Complete Section 14 and include it in your return
- File your return with the Canada Revenue Agency
Your CAI payment will either be applied to your balance owing for the year or will increase your tax refund.
How to reduce your energy emissions
We understand transportation is essential and not everyone has access to public transport or is able to give up their vehicle. Despite this, there are still ways you can reduce your energy consumption and make more eco-friendly choices in other areas of your life.
Your home is the perfect place to save energy. It could be as simple as turning off lights when you’re not using them or opening the windows at night during the summer instead of using air conditioning. Check out our 13 ways to save energy in your home.
If you need to purchase a vehicle, you could always opt for a hybrid or electric model. These types of vehicles are energy efficient and fuel efficient, with many sitting in similar price categories to gas-powered vehicles. You can check out the 8 best hybrid cars in Canada and learn about electric charging stations in Winnipeg in case you end up making a purchase.
Get into an affordable vehicle with Birchwood Credit
The pandemic has made it especially hard for Manitobans to maintain good credit and stable finances.
If your financial situation and credit score aren’t where you want them to be, we can help. We’ll find an affordable vehicle and payment plan that works with your unique financial situation and give you some tips on how you can rebuild your credit.
One of the things that allows us to give you the best deals on your new vehicle is our in-house financing.
In-house financing allows us to give:
- Better rates and repayment terms. We have complete autonomy over the money we lend and are able to give our customers better rates that are tailored to their specific financial situation.
- Approvals to all credit types. Even if your credit isn’t where you want it to be, we’ll get you approved so you can start rebuilding your credit using your car payments.
- Better vehicle selection. When you work with us, you’ll have access to vehicles from all Birchwood dealerships.
Car loans for less than perfect credit
Before we make an approval decision, we look at your entire financial situation, not just your credit score. We understand the challenges that come with being in a difficult financial situation which is why we accept all credit types and work with our customers to find vehicles and payment plans they can actually afford.
Our application process is easy and hassle-free:
- You can apply easily online in less than three minutes
- We don’t require your SIN to get started
- We only ask for basic contact details, place of residence and basic employment information
- You’ll hear if you get approved within 24 hours
- We talk with you and keep you in the loop through the process
Fill out an online Car Loan Application to get started with one of our experts today.
If you’re looking for a quick getaway, Manitoba provincial parks are your answer. To help you decide your next adventure, we’re going to highlight 10 of the top provincial parks and what you can do when you visit.