Northern Ontario Energy Credit Questions and Answers

1. What is the Northern Ontario energy credit (NOEC)?
2. What areas of Ontario are considered Northern Ontario for the NOEC?
3. Am I eligible for the 2012 NOEC?
4. How do I apply for the 2012 NOEC?
5. How much is the 2012 NOEC?
6. Do I have to calculate the 2012 NOEC?
7. When will I get my 2012 NOEC payments?
8. Who will issue the 2012 NOEC payments?
9. What is a principal residence?
10. What is eligible rent paid and what should I enter beside box 6110 on Form ON‑BEN?
11. What are eligible property taxes and what should I enter beside box 6112 on Form ON‑BEN?
12. What amounts can I not include as rent or property tax paid?
13. What should I enter beside box 6121 on Form ON‑BEN for my home energy costs paid on a reserve in Ontario for 2011?
14. What should I enter beside box 6123 on Form ON‑BEN for the amounts I paid for living in a public long‑term care home in Ontario?
15. Do I have to provide my receipts with my 2011 return to prove the amounts I paid?
16. My spouse owns our home but she is living in a nursing home. Are we entitled to the 2012 NOEC?
17. My spouse and I pay property taxes on both our house and our cottage. When we calculate our property tax paid, can we add together the amounts we paid for both properties?
18. In the year of death, is the estate eligible for any 2012 NOEC payments for that year?
19. How will the CRA determine if I am a single parent so that I will qualify for the family‑based 2012 NOEC payment?
20. My ex‑spouse and I share custody of our nine‑year‑old daughter. Neither of us has remarried. Will I receive the 2012 NOEC payments for my child?
21. I'm single and I applied for the 2012 NOEC on my 2011 tax return. I still live in Northern Ontario and I gave birth to my first child in August 2012. I do not share the care of my child. Will I qualify for the family‑based NOEC payments?
22. How do I register my child for the Canada Child Tax Benefit (CCTB) so that I will get the family‑based 2012 NOEC payments?
23. I filed for bankruptcy in 2011. Am I eligible for the 2012 NOEC payments?
24. I immigrated to Northern Ontario on June 15, 2011. Can I apply for the 2012 NOEC payments?
25. I have not filed my 2011 income tax and benefit return. Will I receive a NOEC payment?
26. I applied for the 2012 NOEC on my 2011 return and met all of the conditions to get these payments. However, I have not received any payments—what should I do?
27. I am eligible for the 2012 NOEC payments but I forgot to apply when I filed my 2011 income tax and benefit return. Can I still apply?
28. I moved to Northern Ontario from another province on January 5, 2012. Am I eligible for the 2012 NOEC payments?
29. I moved from Northern Ontario to another province on August 15, 2012. Am I eligible for the 2012 NOEC payments?
30. Do I have to be a Canadian citizen in order to be eligible for the NOEC?
31. We are planning to sell our home in 2012. Are we still eligible for the 2012 NOEC?
32. Are secondary residences in Ontario, such as cottages, eligible for the NOEC?
33. Could a NOEC be claimed on more than one principal residence in a tax year?
34. My address recently changed—what should I do?
35. I have an outstanding debt with the CRA and didn't receive my goods and services tax credit because I owed money to the Government. Will I receive the NOEC?
36. Is the NOEC a taxable benefit?
37. Will there be interest paid or charged on any NOEC underpayments or overpayments?
38. If my application for the NOEC is denied, can I appeal?
39. Who should I contact if I have a question about the Ontario provincial government policy regarding the NOEC?

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1. What is the Northern Ontario energy credit (NOEC)?

The NOEC is an ongoing program designed to help low‑ to moderate‑income Northern Ontario residents with the higher energy costs they face living in the north. The annual entitlement will be divided by 12 and issued monthly as part of the Ontario Trillium Benefit payment. The CRA administers the 2011 and later years NOEC program for Ontario.

2. What areas of Ontario are considered Northern Ontario for the NOEC?

For NOEC, Northern Ontario means the districts of Algoma, Cochrane, Kenora, Manitoulin, Nipissing, Parry Sound, Rainy River, Sudbury (including the City of Greater Sudbury), Thunder Bay, and Timiskaming. You must live in one of these areas on December 31, 2011, to apply for the 2012 NOEC on your 2011 income tax and benefit return.

3. Am I eligible for the 2012 NOEC?

You may be eligible for the 2012 NOEC, if:

• you were a resident of Northern Ontario (see question 2) on December 31, 2011, and one of the following conditions applies:
  • you will be 18 years of age or older before June 1, 2013;
  • you had a spouse or common law partner on or before December 31, 2011; or
  • you are a parent who lives or previously lived with your child (see question 19); and
• for 2011, at least one of the following conditions applies to you:
  • rent for your principal residence (see question 9) was paid by or for you;
  • property tax for your principal residence was paid by or for you;
  • you lived on a reserve in Northern Ontario and home energy costs were paid by or for you for your principal residence on the reserve; or
  • you lived in a public long‑term care home in Northern Ontario and an amount for accommodation was paid by or for you.

You are not eligible for a particular instalment payment if you were confined to a prison or a similar institution at the beginning of that payment month and you were there for a total of more than 90 days.

4. How do I apply for the 2012 NOEC?

To apply for the 2012 NOEC, you must file a 2011 income tax and benefit return. You also must complete Form ON‑BEN, Application for the 2012 Ontario Trillium Benefit and the Ontario Senior Homeowners' Property Tax Grant. Be sure to attach the completed form to your return. This form is included in the tax package for residents of Ontario.

When completing Form ON‑BEN, be sure to place a tick beside box 6119 in the section called "Application for the 2012 Northern Ontario energy credit (NOEC)." Complete Part A on the bottom of page 1 of the form, as well as Part B, and, if applicable, Part C on the reverse of the form. Make sure you provide the following information, if applicable:

• enter your rent paid beside box 6110 (see question 10 and question 12);
• enter your property tax paid beside box 6112 (see question 11 and question 12);
• enter your home energy costs paid on a reserve beside box 6121 (see question 13); or
• enter your accommodation costs for living in a public long‑term care home beside box 6123 (see question 14).

If you were married or living in a common‑law relationship on December 31, 2011, the following applies to you:

• only one spouse or common‑law partner can apply for the payments for both of you;
• the same spouse or common‑law partner who applies for the 2012 Ontario senior homeowners' property tax grant (by ticking box 6113 on Form ON‑BEN) and/or the 2012 Ontario energy and property tax credit (by ticking box 6118) is the only spouse or common‑law partner who can claim the 2012 NOEC; and
• you must provide your spouse's or common‑law partner's net income in the "Identification" area on page 1 of your 2011 return.

5. How much is the 2012 NOEC?

If you are eligible for NOEC, the amount you receive depends on a number of factors including your adjusted family net income, your marital status and whether you have children.

The maximum annual credit is $137 for single individuals with no children and $210 for couples and single parents. If you are a single individual with no children, your credit will be reduced by 1% of your adjusted net income over $36,806. If you are a family, your credit will be reduced by 1% of your adjusted family net income over $47,322.

6. Do I have to calculate the 2012 NOEC?

No. For your 2012 NOEC, you do not have to calculate your entitlement. After you apply, the NOEC will be calculated for you and, if you are entitled, your payments will be issued as explained in question 7. If you are not entitled, you will receive a notice explaining why.

If you would like to calculate your 2012 payment, see the Northern Ontario Energy Credit calculation sheets.

7. When will I get my 2012 NOEC payments?

If you meet the eligibility requirements and your 2011 return is assessed at the time we are determining the payments, your 2012 NOEC instalment payments will be issued on the 10th of each month, starting on July 10, 2012.

If you receive your income tax refund by direct deposit, you will also receive your NOEC payments by direct deposit. Otherwise, you will receive your payments by cheque.

If you are also entitled to the Ontario sales tax credit, and/or the 2012 OEPTC payments, your NOEC entitlement will be added to those amounts and you will receive one payment, called the Ontario Trillium Benefit.

If your 2011 return is not assessed when we do our determination for the above payments, your payment will be issued within four to eight weeks after your 2011 return is assessed.

8. Who will issue the 2012 NOEC payments?

The CRA will issue the 2012 NOEC payments for the Province of Ontario.

9.What is a principal residence?

A principal residence is a housing unit in Ontario that you usually occupy during the year. For example, it can be a house, apartment, condominium, hotel or motel room, mobile home, or rooming house.

10. What is eligible rent paid and what should I enter beside box 6110 on Form ON‑BEN?

Eligible rent paid is the rent that was paid for 2011 by you, or for you, for your principal residence in Ontario.

Beside box 6110, you should enter the total rent paid for your principal residence for 2011.

If you lived with your spouse or common‑law partner on December 31, 2011, enter the total rent that was paid for both of you (including any amounts paid during a period of separation).

If you and your spouse or common‑law partner separated during the year and lived apart on December 31, 2011, enter your share of the rent for the part of the year before the separation, plus your own rent after the separation.

If you shared a principal residence with one or more persons (other than your spouse or common‑law partner), enter your share of the rent paid for the year.

If you were a farmer, enter beside box 6110 the rent paid for your principal residence and one acre of land.

If you lived in a private long‑term care home, hospital, group home, chronic care facility or a similar institution, and the institution paid full municipal and school taxes, enter your rent beside box 6110. If the facility does not break down the cost of room and board (meals, laundering, or other services) on your receipt, you can claim an amount of up to 75% of your total payments as rent.

If you lived in a public long‑term care home, see question 14.

11. What are eligible property taxes and what should I enter beside box 6112 on Form ON‑BEN?

Eligible property taxes are the amount of taxes paid for 2011 by you, or for you, for a home you own in Ontario.

Beside box 6112, you should enter your total property taxes paid for your principal residence for 2011, including the municipal and education property taxes.

If you lived with your spouse or common‑law partner on December 31, 2011, enter the total property tax paid for both of you (including any amounts paid during a period of separation).

If you and your spouse or common‑law partner separated during the year and lived apart on December 31, 2011, enter your share of the property tax for the part of the year before the separation, plus your own property taxes paid after the separation.

If you shared a principal residence with one or more persons (other than your spouse or common‑law partner), enter your share of the property tax paid for the year.

If you reside in an area that does not have a municipal organization, you may include amounts charged under the Provincial Land Tax Act or the Local Roads Boards Act or the Local Services Boards Act.

If you were a farmer, enter the property tax paid for your principal residence and one acre of land.

If you owned and occupied a non‑seasonal mobile or modular home, enter the combined total of the property tax paid for your home, plus the property tax that your landlord/site owner paid for the lot you leased. If the landlord does not provide a breakdown of the property tax paid for the lot, and you do not have an assessment for the lot from the Municipal Property Assessment Corporation, you can estimate the property tax based on the fees paid to your landlord/site owner for the lot. It would be reasonable to take 20% of the fees and add that amount to any property tax paid on the mobile home.

12. What amounts can I not include as rent or property tax paid?

Your property tax and rent paid cannot include amounts such as:

• rent paid for a principal residence that is not subject to municipal and school tax;
• payments to relatives or friends who are not reporting the payments as rental income on their returns;
• property tax or rent paid on part of a home you used for rental or business purposes; or
• property tax or rent paid on a second residence, such as a cottage, if you claimed property tax or rent on your principal residence for the same period.

13. What should I enter beside box 6121 on Form ON‑BEN for my home energy costs paid on a reserve in Ontario for 2011?

If you lived on a reserve in Ontario, beside box 6121, you should enter the total of the amounts paid for 2011 for your electricity and heating costs for your principal residence.

14. What should I enter beside box 6123 on Form ON‑BEN for the amounts I paid for living in a public long‑term care home in Ontario?

If you lived in a public long‑term care home, you should enter only the accommodation charges that were paid by you or for you for 2011.

If you lived in a private long‑term care home, see question 10.

15. Do I have to provide my receipts with my 2011 return to prove the amounts I paid?

No. Whether you are filing electronically or filing a paper return, keep all your receipts in case we ask to see them at a later date.

16. My spouse owns our home but she is living in a nursing home. Are we entitled to the 2012 NOEC?

In a situation where spouses or common‑law partners live apart and maintain separate principal residences in Northern Ontario on December 31, 2011, for medical reasons, if they choose, each may apply for the 2012 NOEC for their separate eligible residences. For the purposes of these claims, we consider you to be involuntarily separated, so your claims will be calculated as if you were single.

On your Form ON‑BEN, Application for the 2012 Ontario Trillium Benefit and the Ontario Senior Homeowners' Property Tax Grant, in addition to completing the application area for the NOEC, tick box 6089 on Part A of the bottom of the form and provide your spouse's or common‑law partner's address in Part C – Involuntary separation, which is located on the reverse of the form. This will let the CRA know that there is an involuntary separation.

17. My spouse and I pay property taxes on both our house and our cottage. When we calculate our property tax paid, can we add together the amounts we paid for both properties?

No. You can only enter the property taxes paid on your principal residence in Ontario. As well, only one of you can apply for the NOEC payments for both of you.

18. In the year of death, is the estate eligible for any 2012 NOEC payments for that year?

If the date of death is before July 1, 2012, the estate is not eligible for any of the 2012 NOEC payments.

If the date of death is July 1, 2012, or later, the estate is only eligible for the 2012 NOEC payment(s) for a particular month if the date of death is on or after the first day of that month.

19. How will the CRA determine if I am a single parent so that I will qualify for the family‑based 2012 NOEC payment?

We will consider you a single parent for a particular month if, on December 31, 2011, you were not married or living in a common‑law relationship and, on the first day of that month our Canada Child Tax Benefit registry shows that you have care (including shared custody care) of a child under the age of 18.

20. My ex‑spouse and I share custody of our nine‑year‑old daughter. Neither of us has remarried. Will I receive the 2012 NOEC payments for my child?

There are no NOEC payments for children. However, as long as we considered you to be a single parent for a particular month (as described in the previous question), your payment for that month will be based on the family amount and income threshold. If we do not consider you to be a single parent for that month, your payment will be based on the single amount and income threshold. If you are a single parent who shares the care of all your children for a payment issuance month, your payment will be calculated as the average of the family‑based and single‑based NOEC payments.

21. I'm single and I applied for the 2012 NOEC on my 2011 tax return. I still live in Northern Ontario and I gave birth to my first child on August 2, 2012. I do not share the care of my child. Will I qualify for the family‑based NOEC payments?

For the July and August 2012 payments, you would only be entitled to the NOEC payment for single taxpayers. However, after you register your child for the Canada Child Tax Benefit (CCTB), your remaining 2012 NOEC payments will be based on the family amount and income threshold.

22. How do I register my child for the Canada Child Tax Benefit (CCTB) so that I will get the family‑based 2012 NOEC payments?

To register your child, complete a Form RC66, Canada Child Benefits Application. You can order this form by calling the CRA at 1‑800‑959‑2221.

Send your completed form to the tax centre that serves your area.

For enquiries on registering children for the Canada Child Tax Benefit program, call 1‑800‑387‑1193.

23. I filed for bankruptcy in 2011. Am I eligible for the 2012 NOEC payments?

Yes. Provided you meet the eligibility criteria explained in question 3, you can file your Form ON‑BEN with the post‑bankruptcy return you file for the tax year ending December 31, 2011. When we calculate your adjusted family net income, we will include your net income for the pre‑ and post‑bankruptcy periods.

24. I immigrated to Northern Ontario on June 15, 2011. Can I apply for the 2012 NOEC payments?

Yes. Provided you meet the eligibility criteria explained in question 3, you can apply for the 2012 NOEC payments. However, in addition to completing Form ON‑BEN, you will also have to file Form RC66SCH, Status in Canada / Statement of Income, to state your income from January 1, 2011, to the date you entered Canada. If you are married or living common‑law and your spouse or partner resides in Canada, you would also provide your spouse's or common‑law partner's income for the same period on Form RC66SCH.

25. I have not filed my 2011 income tax and benefit return. Will I receive a NOEC payment?

No. To receive the 2012 NOEC amounts, you must file a 2011 income tax and benefit return and apply for the NOEC (see question 4).

26. I applied for the 2012 NOEC on my 2011 return and met all of the conditions to get these payments. However, I have not received any payments—what should I do?

You should wait until you have received your 2011 notice of assessment. Once you receive your 2011 notice, you can call 1‑877‑627‑6645 and an agent will help you. The first 2012 NOEC payment is scheduled to be issued on July 10, 2012.

27. I am eligible for the 2012 NOEC payments but I forgot to apply when I filed my 2011 income tax and benefit return. Can I still apply?

Yes. You have to request a reassessment of your 2011 return. Do not file another 2011 income tax and benefit return. Instead, you can make your request by visiting My Account. My Account is a secure, convenient, and time saving way to access and manage your tax and benefit information online, seven days a week. To use My Account, you have to register for a CRA user ID and password.

You can also send one of the following items to your tax centre: a completed Form T1‑ADJ, T1 Adjustment Request, or a signed letter indicating that you want to apply for the 2012 NOEC amounts on your 2011 return.

Please attach to your letter or Form T1‑ADJ a completed Form ON‑BEN or provide information for whichever of the following amounts apply to you:

• your rent paid for your principal residence in Ontario for 2011;
• your property tax paid for your principal residence in Ontario for 2011;
• your home energy costs paid for your principal residence on a reserve in Ontario for 2011; or
• your accommodation costs for living in a public long‑term care home in Ontario for 2011.

28. I moved to Northern Ontario from another province on January 5, 2012. Am I eligible for the 2012 NOEC payments?

No. You must be a resident of Northern Ontario on December 31, 2011, to be eligible for the 2012 NOEC payments.

29. I moved from Northern Ontario to another province on August 15, 2012. Am I eligible for the 2012 NOEC payments?

To be eligible for a 2012 NOEC payment for a particular month, you must be a resident of Northern Ontario on December 31, 2011, and on the first day of that month. So, you will only be eligible for the July and August 2012 payments.

30. Do I have to be a Canadian citizen in order to be eligible for the NOEC?

No. The NOEC is available to both Canadian citizens and landed immigrants, as long as you are a resident of Northern Ontario on December 31, 2011, and meet the other eligibility criteria as described in question 3.

31. We are planning to sell our home in 2012. Are we still eligible for the 2012 NOEC?

The NOEC is based on the property taxes paid for your principal residence for 2011. However, to be eligible for a payment for a particular month you must also be a resident of Northern Ontario on the first day of that month. So, as long as you continue to reside in Northern Ontario, you will be eligible for the 2012 NOEC payments. If you move outside Northern Ontario, you will not be eligible for the 2012 NOEC payments after you move.

32. Are secondary residences in Ontario, such as cottages, eligible for the NOEC?

No. You can only claim a NOEC based on the property taxes or rent paid on your principal residence. However, if you designate your cottage as your principal residence you can use the taxes paid on your cottage for the purposes of the NOEC. You cannot claim the property taxes or rent paid on both properties.

33. Could a NOEC be claimed on more than one principal residence in a tax year?

Applicants could designate more than one principal residence if the taxpayer has lived in more than one principal residence in Northern Ontario at different times in a year. However, you can only have one principal residence at a time.

34. My address recently changed—what should I do?

You should give the CRA your new address as soon as possible by calling 1-877-627-6645. You can also change your address online by going to My Account. Be sure to tell us the exact date of your move.

35. I have an outstanding debt with the CRA and didn't receive my goods and services tax credit because I owed money to the Government. Will I receive the NOEC?

Your NOEC payment will first be used to pay off any debt you owe to the CRA or its external partners, including family support orders that are in arrears. If any amount remains, it will be issued to you.

36. Is the NOEC a taxable benefit?

No. The NOEC is a non-taxable payment.

37. Will there be interest paid or charged on any NOEC underpayments or overpayments?

No. Interest is not charged nor given on any NOEC overpayments or underpayments.

38. If my application for the NOEC is denied, can I appeal?

Yes. If you are denied a NOEC, you can file an objection. You can do this by using the Canada Revenue Agency's secure Web site at www.cra.gc.ca/myaccount, or by sending a completed Form T400A, Objection – Income Tax Act, or a signed letter to:

Chief of Appeals
3rd Floor
Sudbury ON  P3A 5C1

39.Who should I contact if I have a question about the Ontario provincial government policy regarding the NOEC?

You can call the Province of Ontario at 1-866-ONT-TAXS (1-866-668-8297) and ask for information on the Ontario tax credits.