$386 Climate Action Incentive Payment September 2025 – CRA Confirms Delayed Payouts for Late Filers

For years, the Climate Action Incentive Payment (CAIP) helped millions of Canadians offset the costs of federal carbon pricing. But after Ottawa officially ended the program on April 1, 2025, many households have been left wondering whether more funds are coming. The final scheduled installment of CAIP was distributed on July 15, 2025, closing the chapter on a program that became a financial lifeline during an era of rising energy and living costs.

Yet, the story doesn’t completely end there. The Canada Revenue Agency (CRA) has confirmed that delayed payments are still possible in September 2025, particularly for Canadians who filed their 2024 tax returns late. These households may still receive what they are owed — in some cases as much as $386 plus rural supplements — even though the program itself has ended.

This article examines what is happening in September 2025, who may still qualify for payments, why the program ended, and what Canadians should expect moving forward.

Why No New CAIP in September 2025?

The CAIP program was officially discontinued following a federal government decision to restructure climate affordability supports. The reasoning was twofold:

1. End of Federal Carbon Pricing in Participating Provinces
   The carbon pricing framework that funded CAIP was phased out. Provinces such as Ontario, Alberta, Saskatchewan, and Manitoba, which had previously relied on federal backstop pricing, were allowed to design their own climate programs or adopt alternative tax mechanisms.
2. Shift Toward New Climate and Affordability Programs
   Ottawa redirected resources to new affordability measures, including a $500 carbon rebate boost announced earlier in 2025, as well as targeted housing and energy efficiency programs.

This means that no new CAIP installments will be issued beyond July 2025. Any payments landing in September are simply the CRA’s way of catching up with backlogged or delayed tax filings, ensuring late filers don’t lose out on money they were entitled to.

Eligibility for Delayed Payments

To qualify for a September 2025 delayed CAIP payment, Canadians must meet strict conditions. Unlike earlier years, there is no fresh application or registration process. Instead, eligibility depends on your 2024 tax return and whether it was processed late.

Here are the requirements:

• Filed a 2024 Tax Return: Even if filed late, your return must be received and processed by CRA before the September payment cycle.
• Residency: You must have lived in a participating province during the 2024 tax year: Ontario, Alberta, Saskatchewan, or Manitoba.
• Age or Household Status: Applicants must have been at least 19 years old, or younger if married, in a common-law relationship, or a parent.
• Rural Supplement: Those living in eligible rural or small communities automatically receive an extra 20%. Proof of residency may be requested.

These rules are identical to the eligibility framework in place before CAIP ended.

What to Expect in September 2025

For households expecting a delayed payment, here is what will happen:

• Direct Deposit: Canadians enrolled in direct deposit with CRA will receive funds within five business days of processing.
• Cheques by Mail: Those without direct deposit may wait 10–15 business days, depending on postal delivery times.
• No New Applications: CRA will not accept new CAIP applications, as eligibility is based solely on tax returns.

The exact payment amounts remain unchanged from July 2025.

September 2025 Delayed CAIP Payment Amounts

Province	Single Adult	Spouse/Common-law	Per Child	Rural Bonus (20%)
Alberta	$386	$193	$96	$77
Ontario	$280	$140	$70	$56
Saskatchewan	$376	$188	$94	$75
Manitoba	$264	$132	$66	$52

These figures demonstrate that while the amounts varied by province, the program remained significant for households across the country. In rural Alberta, for example, a family of four could receive over \$1,000 annually through CAIP prior to its cancellation.

Why Did the Government End CAIP?

The end of the Climate Action Incentive Payment is part of Ottawa’s broader fiscal and environmental strategy. Several factors influenced the decision:

1. Evolving Climate Policy
   Provinces wanted greater autonomy in designing climate-related measures. Ottawa’s withdrawal allowed them to craft regional programs tailored to local energy realities.
2. Affordability Overhaul
   With inflation driving up costs for food, rent, and utilities, the federal government chose to consolidate programs into larger, one-time affordability measures — such as the $500 carbon rebate boost and $430 rent relief benefit.
3. Budgetary Constraints
   Maintaining CAIP required billions annually. Redirecting funds into new housing and green energy initiatives was presented as a more sustainable solution.

Still, the cancellation has sparked debate. Supporters of CAIP argue that the program was simple, predictable, and effective, directly putting money back into households’ pockets. Critics, however, view it as a temporary patch rather than a permanent affordability solution.

The Broader Context: Inflation and Affordability

The timing of CAIP’s end comes amid ongoing financial pressures for Canadian households. Key affordability challenges include:

• Rising Rent and Housing Costs – Families in major cities now spend upwards of 40% of income on housing.
• Energy Costs – While global oil and gas prices stabilized in 2025, heating and transportation costs remain elevated.
• Grocery Inflation – Food prices have increased by nearly 10% since 2023, forcing many households to rely on government credits.

In this context, losing CAIP represents a gap in predictable quarterly income support, especially for lower-income households in provinces that depended heavily on the program

CRA’s Role in Processing Payments

The Canada Revenue Agency continues to be the central administrator for delayed CAIP payments. According to CRA guidelines:

• Canadians should monitor their My Account portal for payment updates.
• Any incomplete or incorrect tax returns may delay eligibility.
• Households should retain rent, utility, or rural residency documents, as CRA may request proof for random audits.

Importantly, CRA stresses that September 2025 payments are not “new” benefits but late disbursements of the July 2025 installment

What Happens After CAIP?

With CAIP discontinued, Canadians must now look to other affordability programs. Some of the most significant include:

• Canada Carbon Rebate 2025 Boost – Offering up to \$500 annually in certain provinces.
• \$430 Rent Relief Payment (September 2025) – Targeting renters struggling with high housing costs.
• GST/HST Credit 2025 – Providing up to \$680 annually for individuals, with additional support for families.
• Canada Workers Benefit (CWB) – Offering direct support to low- and modest-income workers.

Together, these programs form a patchwork of relief aimed at addressing different aspects of affordability.

What Canadians Should Do Now

If you believe you may be entitled to a delayed CAIP payment in September 2025, here are key steps to follow:

1. File Taxes Immediately – Even if late, ensure your 2024 return is filed to activate eligibility.
2. Check CRA My Account – Log in to verify if a payment has been scheduled.
3. Update Direct Deposit Details – Direct deposit ensures the fastest delivery.
4. Beware of Scams – Fraudsters may exploit confusion around CAIP’s end. Only trust information from CRA or Canada.ca.
5. Plan Ahead – As CAIP is no longer ongoing, explore other benefits like the GST/HST credit or provincial housing programs.

5 FAQs

Q1: Is there a new CAIP payment in September 2025?
No. The program ended after July 15, 2025. Any September payments are delayed disbursements for late tax filers.

Q2: How much is the September 2025 CAIP payment?
Amounts remain the same as July 2025 — up to $386 for individuals in Alberta, with smaller amounts in other provinces plus a 20% rural supplement.

Q3: Who qualifies for delayed payments?
Canadians who filed their 2024 tax return late but meet residency and income criteria in a participating province may still qualify.

Q4: How will payments be made?
Payments are issued via direct deposit (faster, within 5 days) or by cheque (10–15 days).

Q5: What programs replace CAIP?
Canadians should look into the $500 carbon rebate boost, $430 rent relief, and the GST/HST credit as ongoing alternatives.