How to claim the credit
The credit is claimed on either your corporate tax return or trust tax return.
If your project includes different types of eligible property, you may be able to claim multiple ITCs for the same project.
Refer to: Claiming one or more ITCs
Corporation
A corporation claiming the CT ITC must include:
- T2SCH31, Investment Tax Credit - Corporations
- The ITC claim for CT is at line 155 of Schedule 31 (T2SCH31)
- Ensure this amount is included in the total on line 780 of your T2 Corporation Income Tax Return
- Details of how the ITC was calculated
- A form for this will be available at a later date
- Until this form is available, you must provide appropriate information with your return
The above schedule and details should be filed with your T2 Corporation Income Tax Return for the year, using the same method you use to file your taxes.
Partnership
The CT ITC can be allocated only to members of a partnership that are taxable Canadian corporations or mutual fund trusts that are real estate investment trusts.
The partnership must do the following:
- Provide a T5013 Statement of Partnership Income to each member
- Until this form is updated to include the CT ITC, a partnership must notify each member in writing of their allocated share for the year of:
- The CT ITC
- Labour requirements addition to tax
- The CT ITC recapture
- Until this form is updated to include the CT ITC, a partnership must notify each member in writing of their allocated share for the year of:
- File the details of how the ITC was calculated with the Partnership Information Return for the fiscal year
- A form for this will be available at a later date
- Until this form is available, you must provide appropriate information with your return
A corporation that is a member of a partnership must include:
- T2SCH31, Investment Tax Credit – Corporations
- Claim the amount of credit allocated from the partnership at line 155 of Schedule 31 (T2SCH31)
- Ensure this amount is included in the total on line 780 of your T2 Corporation Income Tax Return
- A copy of the notification in writing for any allocated amounts related to the CT ITC that you received from the partnership.
- Usually, the allocated amounts are included on a T5013 Statement of Partnership Income. As this form is currently being updated to reflect allocations for the CT ITC, you will receive a notification in writing from the partnership advising you of the amount allocated to you.
Trust
The CT ITC can only be claimed by mutual fund trusts that are a real estate investment trust.
A real estate investment trust claiming the CT ITC must do the following:
- Claim the amount on Field 88 (line 51) for refundable investment tax credits on the T3 Trust Income Tax and Information Return
- File the details of how the ITC was calculated
- A form for this will be available at a later date
- Until this form is available, you must provide appropriate information with your return
The above details should be filed with your T3 Trust Income Tax and Information Return for the year, using the same method you use to file your taxes.
Additional tax incentives are available for CT property that is also described in Class 43.1 and 43.2. These tax incentives could include Accelerated capital cost allowance (ACCA).
Due date to file for the credit
You must file by the filing due date of either your T2 Corporation Income Tax Return, or your T3 Trust Income Tax and Information Return.
Refer to:
The CRA may accept late filing of the appropriate information, if filed no later than one year after the filing due date.
Provide appropriate information with your return
Until the form that details how the ITC was calculated becomes available, you must provide information with your return as described below:
What to provide with your return
Provide a summary of the CT ITC claim for the year that includes:
- Total CT ITC claim calculation
- Total CT ITC claim amount allocated from each partnership supported by the Partnership Business Number (BN)
Provide a summary of the CT ITC recapture for the year that includes:
- Total CT ITC recapture including information on the ITC recaptured from each CT property
- Total CT ITC claim amount recaptured from each partnership supported by the Partnership Business Number (BN)
For each CT property, include the following:
- Capital cost allowance (CCA) class
- Property type
- Cost
- Province or territory where the property is located
- Labour requirement election and attestation
- Amount subject to recapture
- Recapture ITC rate
How to attach documents to your return
For corporations: Attaching documents to your T2 return
Using the T2 Attach-a-doc-service
The T2 Attach-a-doc service allows corporations to attach supporting documentation such as certificates when they file their T2 return or within 24 hours of filing. This service is not mandatory for certified software products. Some include it and others do not.
If you have questions on the availability of the service: contact the software product company.
Requirements for filing an attachment
You must have filed the initial or amended T2 corporate tax return electronically within the last 24 hours.
Before filing an attachment, make sure you have:
- Your EFILE number and password to file, or a Web Access Code (WAC) for the corporation
- The date and time of the T2 return to which you want to attach the document
- The confirmation number of the T2 return
Follow these document requirements:
- Limit the size of a single transmission to 150 MB. (This means you may have to make multiple transmissions to send documents that exceed the limit.)
- Use one of the following file types for the documents: pdf, doc, docx, xls, xlsx, rtf, txt, jpg, jpeg, tiff, tif, xps.
How to attach documents to your T2 return
- Select "Attach-a-doc" from within the T2 software. (You have 24 hours to attach-a-doc to an electronically submitted T2 Return.)
- You will need the date/time of the T2 return you want to attach the document to along with the confirmation number of the electronic transmission.
- Select the document type "Elections" from a drop-down menu list.
- Enter a description. (The description is limited to 255 characters).
- Select "Submit/Transmit" and the CRA will provide you with a confirmation.
For partnerships: Submitting documents related to your partnership return
Requirements for filing an attachment
Follow these document requirements:
- Add up to 10 files that have a cumulative file size of 500 MB in a single submission. (This means you may have to make multiple submissions through the Submit Documents process to attach documents that exceed the limit.)
- Use one of the following file types for the documents: pdf, doc, docx, xls, xlsx, rtf, txt, jpg, jpeg, tiff, tif, xps.
How to submit documents related to your partnership return
- Sign in to your CRA My Business Account (MyBA).
- On the MyBA Overview page, left hand side navigation pane, under Correspondence, select "Submit documents".
- On the Submitted Documents page, select the "Submit documents" button.
- On the Submit Documents page, select "Start" to begin the Submit Documents process.
- For ‘Do you have a case or reference number’, select "No".
- From the ‘Topic’ dropdown, select "More topics".
- Under ‘Indicate the reason for your submission’, select the "Submit supporting documents for Partnership Financial Return (T5013FIN)" option.
- Then select "Next".
- Use the " + Attachments" button to attach all supporting documentation. You may add up to 10 files that have a cumulative file size of 500 MB. If the total file size is over 500 MB, make multiple submissions through the Submit Documents process.
- Once you have attached all documents you wish to submit, select "Next".
- Review the ‘Reason for submission’.
- Review the attached documents.
- Once you have confirmed you wish to proceed, select "Submit" and the CRA will provide you with a confirmation.
For trusts: Submitting documents related to your T3 return
Requirements for filing an attachment
Follow these document requirements:
- Limit the size of a single transmission to 150 MB. (This means you may have to make multiple transmissions to send documents that exceed the limit.)
- Use one of the following file types for the documents: pdf, doc, docx, xls, xlsx, rtf, txt, jpg, jpeg, tiff, tif, xps.
How to submit documents related to your T3 return
Use the Submit documents online service to attach documents to your T3 return.
Refer to: Submitting and filing documents online related to trusts
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