As British Columbia continues to combat climate change, the province has increased the Climate Action Tax Credit to provide more financial support to low- and moderate-income families. Starting from July 5, 2024, over two million families and individuals began receiving higher payments directly in their bank accounts.
Why the Increase Matters
With the increasing impact of climate change, including droughts and wildfires, the government is taking action to balance environmental protection with economic fairness. The enhanced Climate Action Tax Credit is part of this effort, ensuring that the costs of carbon taxes don’t disproportionately affect those with lower incomes.
Who Benefits?
Approximately 65% of British Columbians are currently benefiting from the tax credit, with plans to extend this to 80% by 2030. For instance, a family of four that received $890 in the 2023-24 fiscal year will now receive $1,005 annually. Similarly, individuals who previously received $447 will now get $504.
Eligibility for the credit is based on income thresholds. For example,
- Families of four with a net income under $107,688 can receive a full or partial credit.
- Individuals with a net income under $66,271 are also eligible for a full or partial credit.
How to Receive the Credit
The Climate Action Tax Credit is automatically deposited into bank accounts alongside the federal GST/HST credit. It’s crucial to note that while the payment is from the B.C. government, it appears on bank statements as a payment from the Government of Canada.
If you need assistance with any legal documentation or transactions related to this tax credit, such as Notarizations or Conveyancing and Real Estate Transactions, our services are available to help you navigate the process smoothly.
More Ways the Government is Helping
In addition to the increased tax credit, the province is offering other financial relief measures:
- BC Family Benefit Bonus: Additional support for families.
- Low car insurance and hydro rates: Efforts to keep essential costs down.
- Free transit for kids: Making transportation more affordable for families.
Residents can explore all available benefits and services through the BC Benefits Connector, a convenient online resource designed to simplify access to government programs.
Stay Informed and Protect Yourself
Be aware that the B.C. government will never contact you by text regarding the Climate Action Tax Credit. If you receive such a message, it may be a scam. For any concerns, contact ITBTaxQuestions@gov.bc.ca.
