The federal carbon tax was imposed in Alberta effective January 1, 2020. Consequently, the Climate Action Incentive will be available to Alberta taxpayers starting on 2019 tax returns. For the tax years 2019 and 2020 the federal rebate is calculated and credited to you directly on return for tax year. This means for those two tax years if you owe nothing or are in a refund position you will receive a larger refund, and if you have a balance owing that balance will be reduced. You must file a return to receive the rebate.
Beginning in 2022, however, the credit will be paid out in four quarterly payments in July, October, January and April rather than being credited directly on you tax return. You still must file a return to receive the credit.
The rebate for Alberta taxpayers on a 2020 tax return is $490 for a single person. If you have a spouse or eligible dependent you will receive an additional $245 and $123 for each child thereafter. Therefore, a family of 4 will receive $981. If you reside outside a Census Metropolitan Area your CAI rebate will be 10% higher. The figures for 2022 have yet to be released.
Also worthy of mention is that the federal Climate Action Incentive is not income tested, which means it is not decreased or eliminated if you have a higher income.