Climate Action Tax Credit 2024: What is BCCATC? Payment Dates and Status 2024

Updated on April 6, 2024

The Climate Action Tax Credit (CATC) is a government initiative aimed at supporting low and middle-income individuals and families in British Columbia (BC), Canada, to help offset the costs associated with the carbon tax. The BC CATC, or BCCATC, specifically refers to the version of this credit in British Columbia.

Payment dates for the BCCATC typically occur quarterly, with eligible individuals and families receiving their credits directly deposited into their bank accounts or through mailed cheques. These payments are usually issued in July, October, January, and April, providing regular financial assistance throughout the year.

The status of BCCATC payments is regularly updated and released by the government to ensure transparency and inform recipients of any changes or updates to the program. It’s essential for eligible individuals and families to stay informed about the status of their payments to ensure they receive the support they are entitled to.

In addition to providing financial assistance, the Climate Action Tax Credit aims to encourage environmentally friendly practices by taxing carbon emissions and redistributing the revenue to help mitigate the financial burden on lower-income households. By supporting climate action initiatives while providing financial relief to those in need, the BCCATC plays a vital role in promoting both economic and environmental sustainability in British Columbia.

Climate Action Tax Credit

The Climate Action Tax Credit is a quarterly payment aimed at reducing the impact of carbon taxes. It’s exclusively funded by the British Columbia Government and is accessible only to residents of the province. However, the Canada Revenue Agency is responsible for administering the payments on behalf of the BC Government.

Starting from July 1, 2024, the tax credit amount has been increased according to the new budget. Similar to other tax credits, the actual benefit amount varies depending on the Adjusted Family Net Income (AFNI). It’s important to note that only one individual within a family can receive the BCCATC on behalf of the entire household. This ensures that each eligible family receives the appropriate amount of support.

BC Climate Action Tax Credit

NameClimate Action Tax Credit
ProvinceBritish Columbia
Administered byCRA
Funded byGovernment of British Columbia
Payment FrequencyQuarterly
Payment Typenon-taxable
Benefit YearJuly 2024 to June 2024
Amount447 dollars (individuals) | 223.50 dollars (Spouse/Common-law partner)
Payment MonthsJuly, October (2024), January, and April (2024)
Websitegov.bc.ca

What is BCCATC?

The BCCATC, short for the British Columbia Climate Action Tax Credit, is a tax-free payment designed to assist low-income individuals and families in mitigating the impact of carbon taxes. This substantial tax credit is determined based on the information provided in the T1 Income Tax and Benefit Return from the previous year. By providing financial support through the BCCATC, the government aims to alleviate the burden of carbon taxes on those who may be economically disadvantaged, thereby promoting equity and sustainability.

Residents of British Columbia do not need to apply to receive the BCCATC. Eligibility is automatically determined by the CRA based on the information provided in the T1 Income Tax and Benefit Return. For further details about the BCCATC, individuals can visit the official website of the British Columbia Government. This ensures that eligible residents can access the necessary information and support without the need for additional application processes.

Climate Action Tax Credit Eligibility

Eligibility for the BCCATC and the credit amount are determined by the CRA. To qualify, individuals must be residents of British Columbia and aged 19 or older. Additionally, their adjusted family net income must meet the threshold set by the CRA.

The BCCATC payment is non-taxable, meaning recipients do not need to include it in their T1 Income Tax and Benefit Return. This ensures that taxpayers who receive the BCCATC can fully benefit from the support provided without any tax implications.

BCCATC Amount

The quarterly amount for the BCCATC is calculated as one-fourth of the annual payment. The maximum amounts credited for each beneficiary category are as follows:

  • Individuals: $447
  • Spouse/Common-law partner: $223.50
  • Children: $111.50 per child ($223.50 for the first child in a single-parent family)

If the Adjusted Family Net Income (AFNI) for 2022 falls below the specified threshold, the payment amount will be the maximum for the respective family size. However, if the AFNI exceeds the threshold, the credit amount decreases by 2% of the income above the limit. Families can receive $111.50 for each child.

Here are the AFNI threshold amounts for different beneficiary categories:

  • Single: $39,115
  • Married/Common-law with no children: $50,170
  • Married/Common-law with 1 child: $50,170
  • Married/Common-law with 2 children: $50,170
  • Married/Common-law with 3 children: $50,170
  • Single parent with 1 child: $50,170
  • Single parent with 2 children: $50,170
  • Single parent with 3 children: $50,170

These figures help determine eligibility and the amount of BCCATC payment each family receives, ensuring that financial assistance is appropriately distributed based on income and family size.

For individuals, the credit decreases by 2% of their AFNI above $39,115, while for families, it’s reduced by 2% of their AFNI above $50,170. More details on the reduction process and the total credit amount can be found on the official website of the British Columbia Government. This ensures transparency and allows eligible individuals and families to understand how their BCCATC payment is calculated based on their income levels.

Climate Action Tax Credit Payment Dates & Status

The Climate Action Tax Credit payments are distributed quarterly. Residents who are eligible and have an annual credit amount exceeding $40 will receive these payments. It’s important to note that the government does not communicate with beneficiaries regarding BCCATC Payments via text messages.

Additionally, each month’s payment is combined with the GST/HST credit and delivered as a single payment. Typically, BCCATC payments are issued on the 5th day of the designated payment month, which includes July, October, January, and April.

However, it’s essential to be aware that BCCATC payments may take up to 10 days to be delivered from the issue date. Therefore, it’s advisable to keep information such as address and bank details up to date to ensure that the CRA can issue payments accurately and promptly. Beneficiaries can also reach out to the CRA for any inquiries or concerns regarding tax credits, providing them with a reliable resource for assistance.

 

 

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