As announced in Budget 2008, the Climate Action Dividend is a one-time payment of $100 for each person -- including children - who were resident in British Columbia on December 31, 2007.

Budget and Fiscal Plan 2008/09 - 2010/11, page 105

As British Columbians increase their awareness of climate change, they are starting to make choices to reduce their greenhouse gas emissions. In addition, British Columbia's new carbon tax, which puts a price on carbon emission and returns those dollars to British Columbians through other tax reductions, is specifically designed to encourage environmentally responsible choices.

The government recognizes that some of these choices may carry additional up-front costs and it can take time for individuals to manage these costs within their personal finances.

From the surplus generated by B.C.'s strong economy, the Province is able to provide a one-time dividend that we hope British Columbians will spend on items that can reduce their greenhouse gas emissions and, by doing so, the amount of carbon tax they would otherwise pay.

This approach allows British Columbians to choose their own unique paths to a lower carbon lifestyle.

Filing an income tax return is the easiest and most straightforward way to receive the payment. British Columbians who have filed an income tax return for 2006 or 2007 will automatically receive a cheque sent to their mailing address. This will encompass the vast majority of British Columbians.

While filing an income tax return is the best way to receive the dividend, there is an alternative process to apply for the Climate Action Dividend through the Ministry of Small Business and Revenue.

For those who filed a 2006 or 2007 income tax return by April 30, 2008, they can expect to receive the dividend payment in late June, 2008. The cheque will be mailed directly to the address indicated on the income tax return.

While we anticipate the vast majority of cheques will be issued in late June, 2008, the Canada Revenue Agency will continue to distribute dividend cheques on a monthly basis as additional income tax returns are filed and assessed. In these cases, we expect it will take between 4 to 8 weeks from the time a person's 2006 or 2007 income tax return is assessed to receive their Climate Action Dividend cheque.

While filing an income tax return is the best way to receive the dividend, there is an alternative process to apply for the Climate Action Dividend through the Ministry of Small Business and Revenue.

No, there are no restrictions. But it is the government's hope that British Columbians will apply the funds toward purchases that can help the environment and save them money by reducing their fuel, water and energy consumption.

Along with the payment, the Province will distribute ideas and examples of how people can use the dividend to make climate-smart choices and save money.

No, the Climate Action Dividend is not considered "income" for the purpose of determining a person's eligibility for or the amount of a benefit under income assistance.

No, the Climate Action Dividend is a deemed overpayment of tax and is not included in income for income tax purposes.

The definition of resident for the Climate Action Dividend is the same as resident for income tax purposes. An individual is generally considered to be resident where the individual, in the settled routine of their life, regularly, normally or customarily lives. The following factors, among others, would normally be considered in determining residency status: the location of the individual's home, spouse, and dependants.

The Canada Revenue Agency is using its database to distribute British Columbia's Climate Action Dividend. The vast majority of British Columbians file an annual income tax return so the Canada Revenue Agency database has current information. If you feel that the Canada Revenue Agency does not have current information for you on file they can be reached at 1 800 959-8281.

The Canada Revenue Agency has information on children, including the primary caregiver, and uses that information for paying families the Canada Child Tax Benefit.  This same information will be used to determine the number of children and the primary caregiver for the $100 payment per child.   If you have not yet registered your child for the Canada Child Tax Benefit, you can do so by contacting the Canada Revenue Agency.  Since there is no income restriction for the dividend, there is no requirement to receive a Canada Child Tax Benefit payment in order to receive the Climate Action Dividend for that child.

This process will cover the vast majority of children and primary caregivers.

For those who have not registered their children for the Canada Child Tax Benefit, the primary caregiver may apply to receive the $100 payment per child through the Ministry of Small Business and Revenue.

To register your children for the Canada Child Tax Benefit with the Canada Revenue Agency please follow the link below to the correct form.

Each individual family member who has filed their own individual 2006 or 2007 income tax return and was resident in B.C. and 18 years of age or older on December 31, 2007 will receive a Climate Action Dividend cheque.

The primary caregiver will receive a cheque in the amount of $100 for themselves, as well as $100 for each qualified dependant. In most cases, the primary caregiver will be the individual who receives the Canada Child Tax Benefit payment for the child for the month of January 2008. However, since there are no income restrictions for the dividend, parents who are not entitled to a Canada Child Tax Benefit will be entitled to the Climate Action Dividend payment. The child must be considered to be in the care of that parent on January 1, 2008, for a cheque to be issued to that parent.

If an individual has not filed a 2006 or 2007 income tax return they will need to do so or apply through the Ministry of Small Business and Revenue to receive the cheque, including the amount for qualified dependants if they are the primary caregiver.

You will automatically receive payment for your dependents, who are under the age of 18 as of December 31, 2007, if you have filed your 2006 or 2007 income tax return and your dependents are registered for the Canada Child Tax Benefit with the Canada Revenue Agency. Parents are entitled to receive $100 dividend for each child, regardless of their income or the amount (if any) of Canada Child Tax Benefit they receive.

If your child is not registered for the Canada Child Tax Benefit, visit the Canada Revenue Agency website at www.cra-arc.gc.ca/benefits or contact them directly at 1-800-387-1193 for more information to ensure you receive your payment automatically.

For those individuals who do not register their children for the Canada Child Tax Benefit, there is also an option for the parent or primary caregiver to apply for the $100 payment per child through the Ministry of Small Business and Revenue at http://www.sbr.gov.bc.ca/documents_library/forms/0131FILL.pdf

The parent, or primary caregiver, of a child will receive a payment of $100 for each of their children. If the child is under the age of 18 and is either married, in a common-law relationship, the parent of a child or living independently on December 31, 2007 then the child is eligible to apply through the Ministry of Small Business and Revenue to receive the payment directly.

In this case, the child can file a 2007 income tax return even if no income was earned. That way, the child gets the cheque. She can also apply through the Ministry of Small Business and Revenue to receive the dividend.

The person who is considered the primary caregiver of the child as of January 1, 2008 will receive the $100 dividend payment per child.

No, you do not need to be a Canadian citizen.

Yes, if they were resident in British Columbia before their posting, they are entitled to receive a dividend.

Military personnel who have filed a 2006 or 2007 income tax return either as British Columbia residents or as deemed residents of Canada will automatically receive a cheque sent to their mailing address.

If you filed your 2006 or 2007 income tax return by April 30, 2008 and have not received your Climate Action Dividend cheque by July 8, contact the CRA at 1-866-426-1526 to inquire about the status of your payment.

Have your spouse contact the CRA at 1-866-426-1526 to inquire about the status of his or her account. The spouse who is the primary caregiver for the children should contact the CRA to find out about the child(ren).

If you did not receive a dividend payment because you have not filed your 2006 or 2007 income tax return, we encourage you to do so as soon as possible, as it is the easiest and most straightforward way to receive the $100 payment. Cheques will be issued on a monthly basis as returns are received and assessed by the CRA.

If you do not file a 2006 or 2007 income tax return, there is an alternative application process available through the Ministry of Small Business and Revenue. The provincial application is available at: http://www.sbr.gov.bc.ca/documents_library/forms/0131NFiLL.pdf . Please allow 6 to 8 week for the application to be processed and the payment to be issued.

For the vast majority of British Columbians, there is no need to apply.

Filing an income tax return is the easiest and most straightforward way to receive the payment. British Columbians who file an income tax return for 2006 or 2007 will automatically receive a cheque sent to their mailing address.

While filing an income tax return is the best way to receive the dividend, there is an alternative process to apply for the Climate Action Dividend through the Ministry of Small Business and Revenue. The application can be found through the following link:

Ministry of Small Business and Revenue Climate Action Dividend Application Form

The CRA is issuing payments to individuals who filed their income tax return for 2006 or 2007 indicating a province of residence of British Columbia. If payment was issued and the CRA subsequently receives information indicating that your province of residence was not British Columbia on December 31, 2007 then a notice will be issued requesting repayment of the Climate Action Dividend cheque as the residency requirements were not satisfied.

If you have filed your 2006 or 2007 income tax return and have not received your cheque, contact the CRA at 1-866-426-1526 to determine the status of your account and update your address.

If you made application to the Ministry of Small Business and Revenue and have not received your cheque, contact SBR at 1-877-387-3332 to determine the status of your account and update your address.

Even if you earned no income, you should still file a 2007 income tax return. If you file a 2006 or 2007 income tax return by April 30, 2008, you can expect to receive the dividend payment in late June, 2008.

If you do not file in time to receive the payment in late June 2008, you can still file and receive the dividend payment. The Canada Revenue Agency will continue to distribute dividend cheques on a monthly basis as they receive and assess income tax returns.

While individuals are not required to file an income tax return, this is the easiest and most straightforward way to automatically receive the payment. If individuals do not file a 2006 or 2007 income tax return they can apply for the Climate Action Dividend through the Ministry of Small Business and Revenue.

The Ministry of Small Business and Revenue will have a simple, one-page application form. Applicants will need to provide some supporting information and/or documentation to show that they were a resident of British Columbia and met the age requirement on December 31, 2007. The application can be found through the following link:

Ministry of Small Business and Revenue Climate Action Dividend Application Form

The Climate Action Dividend program will continue until at least August 1, 2010.

This should give every British Columbian plenty of time to learn about the program, file an income tax return or application, and receive their dividend.

The Province will assess whether it needs to keep the program going beyond August 1, 2010.

The payments are automatically generated by the Canada Revenue Agency based on an individual's income tax return. In Canada there are no "joint returns." Since spouses file separate income tax returns, they will receive separate dividend payments.

Unfortunately, direct deposit is not possible due to the signed authorization requirements. The Climate Action Dividend is a one-time provincial payment that is separate from an income tax refund. Therefore, it cannot be simply added to income tax refunds as an individual would have had to give prior consent for the dividend to be deposited directly into their bank account.

No, because it is a one-time payment and given the added administrative cost to manage the signed authorization requirements, it is much easier to issue the payments by cheque.

Since Canada does not allow joint returns, the easiest and most straightforward way to receive the dividend is for each spouse to file an income tax return. An individual should still file an income tax return even if their spouse has claimed the spousal amount on their income tax return.

While filing an income tax return is the best way to receive the dividend, there is an alternative process to apply for the Climate Action Dividend through the Ministry of Small Business and Revenue.