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 beginning July 2017 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).
Budget 2017 Update proposes to increase the maximum annual payment amount from $115.50 to $135 for you and your spouse or common-law partner, and from $34.50 to $40 per child ($135 for the first child in a single parent family) for the April 2018 and subsequent quarterly payments.
The credit is reduced by 2% of family net 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|
|2016||July 2017 - June 2018||$33,326||$38,880|
|2015||July 2016 - June 2017||$32,737||$38,193|
|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|
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 $33,326, your quarterly low income climate action tax credit amount will be $28.88 ($115.50/4). Budget 2017 Update proposes to increase the payment to $35 ($140/4) for the April 2018 and subsequent payments.
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.
If you move, your marital status or the number of children in your care changes, or a credit recipient has died, the CRA may need to recalculate your credit entitlement. Please notify the CRA if any of these situations apply.
If you have received an overpayment, you will need to repay it.
- For information on how to pay a balance owing, see benefit repayments or contact the CRA at 1 800 387-1193
Claiming the Credit
For the 2014 and subsequent tax years, you don't need to apply for the B.C. low income climate action tax credit. When you file your tax return, the CRA will determine your eligibility and advise you if you are eligible to receive the credit.
If you have a spouse or common-law partner, only one of you can receive the credit. The credit will be paid to the person whose return is assessed first. The amount of the credit will be the same regardless of which one of you receives it.
For the 2007 to 2013 tax years, 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 Benefit (CCB). If your children are not registered for the CCB, complete the Canada Child Benefits Application form (RC66) or use the Apply for child benefits online service on the CRA's My Account.
The following legislation applies to the low income climate action tax credit.