Low Income Climate Action Tax Credit
The B.C. low income climate action tax credit helps offset the impact of the carbon taxes paid by low income individuals or families.
The low income climate action tax credit is combined with the federal goods and services tax/harmonized sales tax (GST/HST) credit into one quarterly payment. The payments are issued by the Canada Revenue Agency (CRA) four times a year in July, October, January and April, and generally fall on the fifth day of the month.
The low income climate action tax credit is a non-taxable payment. This means that you don't need to include it as income when you file your income tax return.
You're eligible to claim the credit if you're a resident of B.C. and you:
- are 19 years of age or older, or
- have a spouse or common-law partner, or
- are a parent who resides with your child.
Only one person can apply for the credit on behalf of the family.
How much you will receive depends upon the size of your family and your adjusted family net income. The maximum annual payment amount for the period July 2015 to June 2016 is $115.50 for yourself, $115.50 for your spouse or common-law partner, and $34.50 per child ($115.50 for the first child in a single parent family).
The credit is reduced by 2% of net family income over the income threshold.
The following table shows the income threshold amounts.
|Tax Year||Payment Dates||Net Income Threshold Single||Net Income Threshold Married or Single Parent|
|2014||July 2015 - June 2016||$32,445||$37,852|
|2013||July 2014 - June 2015||$32,219||$37,589|
|2012||July 2013 - June 2014||$32,187||$37,552|
|2011||July 2012 - June 2013||$31,711||$36,997|
|2010||July 2011 - June 2012||$30,968||$36,130|
|2009||July 2010 - June 2011||$30,722||$35,843|
One-quarter of your annual credit entitlement will be issued to you four times a year. For example, if you are a single individual with no children and an income under $32,445, your quarterly low income climate action tax credit amount will be $28.88 ($115.50/4).
Note: To be eligible to receive a quarterly payment, you must be a resident of B.C. on both the first day of that quarter and the first day of the previous quarter. For example, to be eligible for the October payment, you must have been a resident of B.C. on both October 1 and July 1.
Claiming the Credit
You or your spouse or common-law partner can apply for the low income climate action tax credit when you file your T1 Income Tax Return with the CRA. On page 1 of your return, check the "Yes" box in the GST/HST credit application area.
If you have a spouse or common-law partner, be sure to complete the information concerning your spouse or common-law partner in the Identification area on page 1. Include his or her net income, even if it is zero and enter his or her social insurance number.
To receive the credit for your children under the age of 18, they must be registered for the Canada Child Tax Benefit (CCTB). If your children are not registered for the CCTB, complete the Canada Child Benefits Application form (RC66). You can also request the CCTB form by calling the CRA at 1-800-959-8281 or ordering the form online using the CRA online order form.
The following legislation applies to the low income climate action tax credit.