Saskatchewan is now home to the carbon tax, and Regina-Wascana Liberal MP Ralph Goodale explained the financial impact that it will have on the area.

Goodale said that the carbon tax would provide benefits to the people of Saskatchewan, contrary to popular belief.

"It actually is designed in such a way to be an incentive, not a penalty."

He said that funds will be directed back towards Saskatchewanians as a result of the tax, with monetary incentives fluctuating based on the size and location of a household.

Goodale used a family of four as an example.

"They will be entitled to a climate action incentive on their income tax when they file it in the next month or so," the MP who also serves as Minister of Emergency Preparedness and Minister of Public Safety said. "They will get $609."

Costs to an average family of four in Saskatchewan as a result of the carbon tax is estimated to be around $400.

"That's a deliberate design feature to make the point that there is a way to put a price on pollution that actually leaves people better off, not worse off," Goodale explained."That's why the climate incentive is so important."

Those incentives are expected to increase to around $1,459 by 2022 as energy costs increase.

A chart which outlines the monetary value that various households can claim is available on www.rgoodale.liberal.ca.

An extra incentive launched with the program is an added 10% top-off which can be given to those in rural areas of Saskatchewan. The definition of rural areas, in this case, is any community under a population of 100,000 people.

In regards to the effects that the tax will have on the agriculture industry, there are some incentives that will be enacted to help cut costs for producers.

"Farms and agricultural operations are completely exempt from carbon pricing," he said as he went into further detail. "When people buy their gasoline or their diesel for their normal farming operations, there will be no carbon price attached to that, it's a complete exemption."

Businesses will also be receiving some incentives to lower the impact of the federally imposed tax.

"There is a special fund, it works out to about $450 million over the next four to five years to assist them in offsetting some of those costs, becoming more energy efficient reducing their expenses, and benefiting as a result of the transition."

The total incremental cost caused by the carbon tax is estimated to be around 0.2%.