People in Ontario will get money sent to them today. Here's how much to expect

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A cheque from the government is on tap for some Ontarians this week.

That’s because the first instalment of the climate action incentive payment (CAIP) is set to be issued on July 15 along with a retroactive payment for April.

The CAIP is a tax-free payment created to help offset the cost of the federal pollution pricing. This follows the federal government’s 2019 move to establish a national price on carbon pollution.

In the past, CAIP was handed out as a refundable credit claimed on an annual basis, but as of this month, the government has pivoted to quarterly installments.

The payment is only available to people living in Ontario, Alberta, Saskatchewan and Manitoba.

The amount residents receive depends on their family situation and the province they live in.

In Ontario, the program provides an annual credit of:

There is also a rural supplement of 10 per cent of the base amount for residents of small and rural communities.

Residents do not need to apply for CAIP. Instead, the Canada Revenue Agency (CRA) will determine who is eligible based on income taxes and benefit returns.

In order to receive CAIP payments, income taxes and benefit returns must be filed every year.