Many Ontarians may notice a surprise cheque in the mail this week from the federal government thanks to changes to the Climate Action Incentive Payment (CAIP), which is now being dealt out quarterly to eligible residents.

The tax-free payment is meant to compensate for the carbon pollution pricing system, which in some parts of Canada is managed at the provincial level, but in Ontario, Alberta, Manitoba, Saskatchwan, Yukon and Nunavut is administered as a federal charge.

Most of the direct proceeds in these provinces are directed back to residents, rather than to the provincial governments, through the CAIP.

👀 Keep an eye out for your first payment for the Climate action incentive payment! If you’re eligible, you should receive it on July 15th.

❗ This will include a retroactive payment for April. More info ➡️ https://t.co/sTx0FPzWLu #CdnTax pic.twitter.com/MpERa2fR5w

— Canada Revenue Agency (@CanRevAgency) July 13, 2022

Residents will have had to file their 2021 income taxes and benefit returns to meet the criteria for the payment, which varies in amount: $373 for an individual, $186 for a spouse or common-law partner, $186 for the first child in a single-parent family, and $93 for anyone under 19 living with their parents in Ontario.

Those living in select rural areas will also receive 10 per cent more.

While these credits were previously distributed once a year, 2022 is the first year they are being divided up quarterly, with the first installment coming on July 15 via cheque or direct deposit for those who usually get their tax refund that way. This round will also include a retroactive payment for April. 

The payment is automatic from the Canadian Revenue Agency and does not need to be applied for. Further information is available on the Government of Canada website.