Second ‘enhanced’ B.C. climate action tax credit going out this week

The B.C. government says hundreds of thousands of families are expected to “see more money in their bank accounts this week” when its second “enhanced” climate action tax credit payments go out.

The province upped income thresholds and the tax credit in its 2023 budget. It says a single person can now get up to $447 per year, while a family of four can now receive up to $893.50. That’s up by $250 and $390 from 2022, the province adds.

Due to the increased income thresholds, the B.C. government says more than two million families and individuals are expected to receive the climate action tax credit this year, with about 70 per cent eligible for the maximum payment.

“By expanding and significantly increasing the climate action tax credit, we’re taking on carbon pollution, while helping to reduce costs for people in communities across B.C.,” said Minister of Finance Katrine Conroy, noting high interest rates and inflation continue to put pressure on British Columbians’ finances.

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The payments are administered by the Canada Revenue Agency. The province says the credit will appear on your bank statement as coming from the Government of Canada.

It says the climate tax credit is paid alongside the federal GST/HST credit, adding it can take up to 10 days for it to be processed. Issued quarterly, the province says the first payment went out in July.

“Our government recognizes the challenges people are facing and is working hard to make life better for people,” Conroy said. “That’s why we always encourage people to file their income taxes to ensure they receive the support they are entitled to, including the climate action tax credit, the BC family benefit and the sales tax credit.”

The provincial government notes B.C. is one of the few provinces with its own carbon tax, or “pollution-pricing system.” The credit, it says, was “created to help offset costs for people and families with low and middle incomes.”

The BC NDP announced in Budget 2023 that it would enhance the climate action tax credit each year so that, by 2030, 80 per cent of B.C. households “will receive a full or partial credit.”

With B.C.’s Carbon Tax increasing yearly by “$15 per tonne until rates are equal to $170 in 2030,” Budget 2023 projected that “a significant majority” of people will “receive more through the enhanced credit than they pay in increased carbon tax costs by 2030.”

Construction cranes tower above condos under construction near southeast False Creek in Vancouver on February 9, 2020. THE CANADIAN PRESS/Darryl Dyck

“Ordinary British Columbians already struggling with costs can’t bear this cost burden alone which is why as the price on pollution rises, so will the Climate Action Tax Credit,” Conroy explained in February.

“Our government recognizes the challenges people are facing and is working hard to make life better for people,” Conroy said on Oct. 5.

“That’s why we always encourage people to file their income taxes to ensure they receive the support they are entitled to, including the climate action tax credit, the BC family benefit and the sales tax credit.”

The province is reminding British Columbians to be vigilant and wary of fraud, saying it will never contact individuals about the tax credit by text message.