How to claim the credit
Generally, you can claim the credit for the tax year in which the expenses are incurred, regardless of when the property becomes available for use, provided that all relevant requirements are met.
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 CCUS ITC must include:
- T2SCH31, Investment Tax Credit - Corporations (Open in a new tab)
- The ITC claim for CCUS is at line 200 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 (Open in a new tab) for the year, using the same method you use to file your taxes.
Partnership
A partnership that allocates the CCUS ITC to its corporate members must:
- Provide a T5013 Statement of Partnership Income (Open in a new tab) to each corporate member
- Until this form is updated to include the CCUS ITC, a partnership must notify each member in writing of their allocated share for the year of:
- The CCUS ITC
- Labour requirements addition to tax
- Part XII.7 addition to tax
- Until this form is updated to include the CCUS 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 (Open in a new tab)
- Claim the amount of credit allocated from the partnership at line 200 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 CCUS 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 CCUS ITC, you will receive a notification in writing from the partnership advising you of the amount allocated to you.
The above schedule and details should be filed with your T2 Corporation Income Tax Return (Open in a new tab) for the year, using the same method you use to file your taxes.
Due date to file for the credit
You must file by the filing due date of your T2 Corporation Income Tax Return.
Refer to: When to file your corporation income tax return (Open in a new tab)
The CRA may accept late filing of the appropriate information, if filed no later than one year after the filing due date.
Previous year filing
If you have a tax year ending in 2022, 2023, or 2024, you can file the CCUS ITC claim with the CRA by the later of:
- December 31, 2025, and
- One year after the filing-due date
If you have already filed your corporate income tax return for 2022 or 2023, you can:
request a reassessment electronically using the latest commercial tax preparation software packages, or send a letter to the tax centre that serves the corporation
provide the appropriate information with your reassessment request for these prior years
Refer to: How to request a reassessment (Open in a new tab)
Refer to: What to provide with your return
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 CCUS ITC claims in the year that includes:
- Total CCUS ITC claims in the year from all CCUS projects summarized by each type of qualified expenditure including your Business Number (BN) and the NRCan Reference number
- Total CCUS ITC claims allocated from a partnership for each CCUS ITC claim supported by your Partnership Business Number (BN) and the NRCan Reference number
For each qualified CCUS project, provide the following:
- Cumulative CCUS development tax credit calculation information including:
- Total qualified CCUS expenditure made in prior years identified by type of qualified expenditure
- Total qualified CCUS expenditure made in current year identified by type of qualified expenditure
- ITC rate applied to each qualified expenditure
- Cumulative CCUS development tax credit by type of qualified expenditure
- Cumulative CCUS development tax credit of the prior years by type of qualified expenditure
- Qualified expenditures for dual-use equipment must be identified separately
- Identification/details of any property disposition or export from Canada
- Labour requirement election and attestation
- Most recent Climate Risk Disclosure report production and disclosure date
If you are claiming the CCUS refurbishment tax credit, please provide information in respect of how the credit was calculated.
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 (Open in a new tab).
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 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
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
- 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.
Repaying credit amounts to the CRA
You must track and account for your actual use of captured CO2.
You may have to repay credits amounts you have already received if:
The actual eligible use percentage is lower than the projected eligible use percentage
You disposed of property or exported it from Canada
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