Everything You Need to Know About the 2019 Carbon Tax Rebate – Manitoba

by | Oct 25, 2021 | Financial Info, Taxes

How Climate Action Incentive payments will be calculated:

A Manitoba family of four will receive $339 in 2019

Under the proposed approach, individuals in Manitoba will receive a tax-free Climate Action Incentive payment after filing their 2018 tax return, starting in early 2019.  Climate Action Incentive payments in Manitoba will be calculated as follows for 2019:

  • $170 for a single adult or the first adult in a couple.
  • $85 for the second adult in a couple. Single parents will receive this amount for their first child.
  • $42 for each child in the family (starting with the second child for single parents).

Under this proposal, a Manitoba family of four will receive $339 in 2019.

The average household in Manitoba will receive $336, taking into account the various family sizes and circumstances.

Example: Family of Five

Jacob and Melody, who have three children (aged four, six, and eight), live in Winnipeg. They decide that Jacob will be the parent claiming the Climate Action Incentive payment for their family when he files his 2018 tax return in early 2019. He will claim $170 for himself, $85 for Melody, and $42 for each of their three children, for a total amount of $381. Jacob will see this full amount when his tax return is assessed.

Delivery of Payments

Under the proposal, individuals will claim the Climate Action Incentive payment on their tax return. This will involve filling out a short schedule identifying the number of adults and children in the family unit for which payments would be claimed. There will be one claim per family.

The provision of Climate Action Incentive payments through the Canada Revenue Agency ensures timely, accurate, and cost-efficient delivery.

Impact on individuals and families

Climate Action Incentive payments enable the government to encourage lower greenhouse gas (GHG) emissions without imposing a financial burden on households. The federal backstop system helps the environment and the economy by putting a price on pollution and supporting cleaner alternatives. Most households in Manitoba will receive more in Climate Action Incentive payments than they incur in total costs resulting from pollution pricing. As the pollution price itself encourages fewer GHG emissions, it will both protect the environment and promote green innovation.

Payment Amounts in Subsequent Years

Climate Action Incentive payments will increase annually to reflect increases in the price on pollution under the federal backstop system, until at least 2022. The Federal Minister of Finance will make annual announcements of Climate Action Incentive payment amounts, reflecting the increasing price on pollution and updated levels of direct proceeds.

Based on current projections, Climate Action Incentive payment amounts (excluding the supplement for residents of small and rural communities) in future years would be as follows:

First Adult$250$328$402
Family of Four Total$499$654$801