MORE than two million individuals and families will see the first quarterly payment of the newly expanded and enhanced climate action tax credit in their bank accounts this week.
“As global inflation continues to impact the costs of everyday life, we’re making sure more people will receive more money to help with their bills,” said Katrine Conroy, Minister of Finance, on Wednesday. “B.C.’s price on carbon pollution continues to be one of the strongest and most comprehensive in Canada. Boosting the climate action tax credit is just one of the ways we are putting money in people’s pockets as we work toward a low-carbon future.”
As part of Budget 2023, the Province raised income thresholds and increased the climate action tax credit to ensure B.C.’s clean transition remains affordable for more people.
A single person can now receive as much as $447 per year, an increase of more than $250 from 2022, or more than double what they received last year. A family of four can now receive as much as $893.50, which is $390 more than last year.
The increases to the income threshold mean individuals with a net income below $61,465 will receive a full or partial credit. A single parent with two children with a net income below $89,270 will receive a full or partial credit. The increased thresholds mean more people will be eligible for the money this year. An estimated 70% of individuals eligible can expect the maximum amounts.
“The climate action tax credit provides a huge relief,” said Antoinette Halberstadt, a Nelson resident. “As a senior, this credit takes the stress off making rent payments and helps me to cover the cost of appointments others might not have, like physio and acupuncture. The climate action tax credit will help me pay for those services that are keeping me active and moving.”
B.C. is one of the few provinces with its own pollution-pricing system, the carbon tax. Most of the revenue from the carbon tax increase that is part of Budget 2023 is going back to people through the climate action tax credit.
The credit was created to help offset costs for people and families with low and middle incomes, while ensuring B.C.’s carbon tax can continue to help pay for programs, services and infrastructure throughout the province. The income ceiling for the credit will increase annually, with a goal to reach 80% of households in B.C. by 2030.
The Province is helping people deal with rising costs through other measures, including higher BC Family Benefits. Starting July 20, 2023, families with children will receive as much as $750 more per year, which includes a $500 annual top-up for single parents to help make ends meet.
Quick Facts:
* B.C.’s climate action tax credit is paid through Canada Revenue Agency, along with the federal GST/HST credit, and can take as long as 10 days to be delivered.
* Despite being a payment from the province, it will appear on bank statements as a payment from the Government of Canada.
* Individuals make up an estimated 70% of climate action tax credit recipients and about 55% of them are female.
* B.C.’s carbon tax is an important part of the CleanBC plan to create a healthier future by lowering climate-changing emissions.
* The carbon tax will increase every year until it reaches $170 per tonne in 2030, as required by the federal government.
