Climate Action Tax Credit

Last Updated: July 7, 2020

The B.C. climate action tax credit (BCCATC) helps offset the impact of the carbon taxes paid by individuals or families.

The Federal government announced benefit payments will continue for an additional three months for those who are not able to file their 2019 income tax returns on time. For details see the News Release

This will also apply to the enhanced B.C. climate action tax credit payment for July 2020.

The climate action tax credit payments are non-taxable. This means that you don't include it as income when you file your income tax return.

You're eligible to receive 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.

If you are eligible for the climate action tax credit, you will receive the credit payment from the Canada Revenue Agency (CRA). The credit payment is combined with the federal goods and services tax/harmonized sales tax (GST/HST) credit into one quarterly payment.

The payments are issued four times a year in July, October, January and April. Generally, the payments are made on the fifth day of the month. For a list of all payment dates, visit the CRA website.

To be able to receive each 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 get the October payment, you must have been a resident of B.C. on both October 1 and July 1.  

Only one person can receive the credit on behalf of the family.

You can use the CRA’s Child and Family Benefits Calculator to estimate your total benefit payment for all child and family benefits you may be eligible for, including the climate action tax credit.

Note: The calculator is not updated to reflect the one-time enhanced July 2020 payment for the July 2020 to June 2021 benefit year.

Credit Amounts

How much you receive depends on the size of your family and your adjusted family net income.

The maximum annual credit is determined by adding:

  • The adult amount for the tax year for yourself,
  • The adult amount for the tax year for your spouse or common-law partner, and
  • The child amount for the tax year for each child.

The first child in a single parent family will receive the adult amount instead of the child amount.

If your adjusted family net income is below a certain threshold amount for the tax year, you will receive the maximum credit. If your adjusted family net income is above the threshold amount, the credit is reduced by 2% of the adjusted family net income above the threshold until the credit becomes zero.

Graph showing how the credit amount reduces beyond the threshold amount of the adjusted family net income until it becomes zero credit.

You will generally receive one-quarter of the annual climate action tax credit each quarter. If your annual credit is less than $40 you will receive the entire annual credit in one lump sum payment at the beginning of the benefit year.

Payments for the July 2020 to June 2021 Benefit Year

The payments made in July 2020, October 2020, January 2021 and April 2021 are based on your adjusted family net income for the 2019 tax year.

One-Time Enhanced Payment for July 2020

As part of B.C.'s COVID-19 Action Plan, the B.C. government announced a one-time enhanced B.C. climate action tax credit payment for July 2020.

If you’re eligible for the tax credit, you’ll be eligible for the one-time enhanced July 2020 payment.

The one-time enhanced July 2020 payment has an increased income threshold amount before the tax credit is reduced to zero. If you weren’t previously eligible for the tax credit due to your income, you may be eligible for this one-time enhanced payment.

The one-time enhanced July 2020 payment is:

  • Up to $218, an increase of up to $174.50 from the regular tax credit amount, for you, your spouse or common-law partner, or your first child in a single parent family

  • Up to $64, an increase of up to $51.25 from the regular tax credit amount, for each additional child

This means the maximum annual climate action tax credit payment amounts for the July 2020 to June 2021 benefit year are:

  • Up to $348.50 each for you, your spouse or common-law partner, or your first child in a single parent family

  • Up to $102.25, for each additional child

The enhanced payment will be made in July 2020 combined with the federal goods and services tax/harmonized sales tax (GST/HST) credit.

Income Threshold Amounts

July 2020 Payment

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for your one-time enhanced July 2020 payment for some common family configurations.

For income threshold amounts for October 2020, January 2021 and April 2021 quarterly payments, refer to the next table.

Income Threshold Amount for the One-Time Enhanced July 2020 Payment

 

Adjusted Family Net Income Threshold Amount

Reduced Credit if Adjusted Family Net Income is Between

Adjusted Family Net Income Where Credit is Reduced to Zero

Single

$35,748

$35,748 and $79,348

$79,348 or more

Married or common-law with no children

$41,706

$41,706 and $128,906

$128,906 or more

Married or common-law with one child

$41,706

$41,706 and $141,706

$141,706 or more

Married or common-law with two children

$41,706

$41,706 and $154,506

$154,506 or more

Married or common-law with three children

$41,706

$41,706 and $167,306

$167,306 or more

Single parent with one child

$41,706

$41,706 and $128,906

$128,906 or more

Single parent with two children

$41,706

$41,706 and $141,706

$141,706 or more

Single parent with three children

$41,706

$41,706 and $154,506

$154,506 or more

October 2020, January 2021 and April 2021 Payments

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for your October 2020, January 2021 and April 2021 payments for some common family configurations.

Income Threshold Amount for October 2020, January 2021 and April 2021 Quarterly Payments

 

Adjusted Family Net Income Threshold Amount

Reduced Credit if Adjusted Family Net Income is Between

Adjusted Family Net Income Where Credit is Reduced to Zero

Single

$35,748

$35,748 and $44,448

$44,448 or more

Married or common-law with no children

$41,706

$41,706 and $59,106

$59,106 or more

Married or common-law with one child

$41,706

$41,706 and $61,656

$61,656 or more

Married or common-law with two children

$41,706

$41,706 and $64,206

$64,206 or more

Married or common-law with three children

$41,706

$41,706 and $66,756

$66,756 or more

Single parent with one child

$41,706

$41,706 and $59,106

$59,106 or more

Single parent with two children

$41,706

$41,706 and $61,656

$61,656 or more

Single parent with three children

$41,706

$41,706 and $64,206

$64,206 or more

Effective July 1, 2021, the maximum annual climate action tax credit payment amounts will be $193.50 for the adult amount and $56.50 for the child amount.

Previous Payments

Expand the section below to see credit amount details for previous tax years.

The payments made in July 2019, October 2019, January 2020 and April 2020 are based on your adjusted family net income for the 2018 tax year.

The maximum annual climate action tax credit payment amounts are:

  • $154.50 each for you and your spouse or common-law partner (or the first child in a single parent family)

  • $45.50 each for all other children

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for some common family configurations.

Income Threshold Amount for July 2019 to June 2020
  Adjusted Family Net Income Threshold Amount Reduced Credit if Adjusted Family Net Income is Between Adjusted Family Net Income Where Credit is Reduced to Zero
Single $34,876 $34,876 and $42,601 $42,601 or more
Married or common-law with no children $40,689 $40,689 and $56,139 $56,139 or more
Married or common-law with one child $40,689 $40,689 and $58,414 $58,414 or more
Married or common-law with two children $40,689 $40,689 and $60,689 $60,689 or more
Married or common-law with three children $40,689 $40,689 and $62,964 $62,964 or more
Single parent with one child $40,689 $40,689 and $56,139 $56,139 or more
Single parent with two children $40,689 $40,689 and $58,414 $58,414 or more
Single parent with three children $40,689 $40,689 and $60,689 $60,689 or more

The payments made in July 2018, October 2018, January 2019 and April 2019 were based on your adjusted family net income for the 2017 tax year.

The maximum annual climate action tax credit payment amounts were

  • $135 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $40 each for all other children

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for some common family configurations.

  Adjusted Family Net Income Threshold Amount Reduced Credit if Adjusted Family Net Income is Between Adjusted Family Net Income Where Credit is Reduced to Zero
Single $33,993 $33,993 and $40,743 $40,743 or more
Married or common-law with no children $39,658 $39,658 and $53,158 $53,158 or more
Married or common-law with one child $39,658 $39,658 and $55,158 $55,158 or more
Married or common-law with two children $39,658 $39,658 and $57,158 $57,158 or more
Married or common-law with three children $39,658 $39,658 and $59,158 $59,158 or more
Single parent with one child $39,658 $39,658 and $53,158 $53,158 or more
Single parent with two children $39,658 $39,658 and $55,158 $55,158 or more
Single parent with three children $39,658 $39,658 and $57,158 $57,158 or more

The payments made in July 2017, October 2017, January 2018 and April 2018 were based on your adjusted family net income for the 2016 tax year.

The credit amount was increased effective April 1, 2018. Therefore, the credit payment you receive for April 2018 is different than the amounts you receive for July 2017, October 2017 and January 2018.

The maximum annual climate action tax credit payment amounts for July 2017, October 2017, and January 2018 were

  • $115.50 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $34.50 each for all other children

After the increase, the maximum annual climate action tax credit payment amounts for April 2018 was

  • $135 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $40 each for all other children

Therefore, the maximum quarterly payments were:

For July 2017, October 2017, and January 2018:

  • $28.87 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $8.63 each for all other children

For April 2018:

  • $33.75 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $10 each for all other children

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for the July, October and January payments for some common family configurations.

  Adjusted Family Net Income Threshold Amount Reduced Credit if Adjusted Family Net Income is Between Adjusted Family Net Income Where Credit is Reduced to Zero
Single $33,326 $33,326 and $39,101 $39,101 or more
Married or common-law with no children $38,880 $38,880 and $50,430 $50,430 or more
Married or common-law with one child $38,880 $38,880 and $52,155 $52,155 or more
Married or common-law with two children $38,880 $38,880 and $53,880 $53,880 or more
Married or common-law with three children $38,880 $38,880 and $55,605 $55,605 or more
Single parent with one child $38,880 $38,880 and $50,430 $50,430 or more
Single parent with two children $38,880 $38,880 and $52,155 $52,155 or more
Single parent with three children $38,880 $38,880 and $53,880 $53,880 or more

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for the April 2018 payment for some common family configurations.

  Adjusted Family Net Income Threshold Amount Reduced Credit if Adjusted Family Net Income is Between Adjusted Family Net Income Where Credit is Reduced to Zero
Single $33,326 $33,326 and $40,076 $40,076 or more
Married or common-law with no children $38,880 $38,880 and $52,380 $52,380 or more
Married or common-law with one child $38,880 $38,880 and $54,380 $54,380 or more
Married or common-law with two children $38,880 $38,880 and $56,380 $56,380 or more
Married or common-law with three children $38,880 $38,880 and $58,380 $58,380 or more
Single parent with one child $38,880 $38,880 and $52,380 $52,380 or more
Single parent with two children $38,880 $38,880 and $54,380 $54,380 or more
Single parent with three children $38,880 $38,880 and $56,380 $56,380 or more

The payments made in July 2016, October 2016, January 2017 and April 2017 were based on your adjusted family net income for the 2015 tax year.

The maximum annual climate action tax credit payment amounts were

  • $115.50 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $34.50 each for all other children

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for some common family configurations.

  Adjusted Family Net Income Threshold Amount Reduced Credit if Adjusted Family Net Income is Between Adjusted Family Net Income Where Credit is Reduced to Zero
Single $32,737 $32,737 and $38,512 $38,512 or more
Married or common-law with no children $38,193 $38,193 and $49,743 $49,743 or more
Married or common-law with one child $38,193 $38,193 and $51,468 $51,468 or more
Married or common-law with two children $38,193 $38,193 and $53,193 $53,193 or more
Married or common-law with three children $38,193 $38,193 and $54,918 $54,918 or more
Single parent with one child $38,193 $38,193 and $49,743 $49,743 or more
Single parent with two children $38,193 $38,193 and $51,468 $51,468 or more
Single parent with three children $38,193 $38,193 and $53,193 $53,193 or more

The payments made in July 2015, October 2015, January 2016 and April 2016 were based on your adjusted family net income for the 2014 tax year.

The maximum annual climate action tax credit payment amounts were

  • $115.50 each for you and your spouse or common-law partner (or the first child in a single parent family)
  • $34.50 each for all other children

The following table shows the income threshold amount and the income amount where the credit is reduced to zero for some common family configurations.

  Adjusted Family Net Income Threshold Amount Reduced Credit if Adjusted Family Net Income is Between Adjusted Family Net Income Where Credit is Reduced to Zero
Single $32,445 $32,445 and $38,220 $38,220 or more
Married or common-law with no children $37,852 $37,852 and $49,402 $49,402 or more
Married or common-law with one child $37,852 $37,852 and $51,127 $51,127 or more
Married or common-law with two children $37,852 $37,852 and $52,852 $52,852 or more
Married or common-law with three children $37,852 $37,852 and $54,577 $54,577 or more
Single parent with one child $37,852 $37,852 and $49,402 $49,402 or more
Single parent with two children $37,852 $37,852 and $51,127 $51,127 or more
Single parent with three children $37,852 $37,852 and $52,852 $52,852 or more

 

Claiming the Credit

For the 2014 and subsequent tax years, you don't need to apply for the B.C. climate action tax credit. When you file your income 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 tax years before 2014, you or your spouse or common-law partner can apply for the climate action tax credit when you file your income tax return with the CRA. On page 1 of your return, check the "Yes" box in the GST/HST credit application area.

The CRA will calculate your credit entitlement automatically based on the information you filed on your income tax return.

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 their net income, even if it is zero, and enter their 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 CRA may need to recalculate your credit entitlement if:

  • You move
  • Your marital status changes
  • The number of children in your care changes
  • A credit recipient has died

You must 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.

Legislation

The following legislation applies to the climate action tax credit.