How and when to claim the credit
Generally, you can claim the CCUS ITC in 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.
You claim the credit with your corporate income 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 CCUS ITC must include:
- Details of how the ITC was calculated:
- Complete Form T2SCH78, Carbon Capture, Utilization, and Storage Investment Tax Credit (Open in a new tab) (2022 and later tax years)
- Form T2SCH31, Schedule 31, Investment Tax Credit - Corporations: (Open in a new tab)
- The ITC claim for CCUS is at line 200 of Schedule 31
- Ensure this amount is included in the total on line 780 of your T2 Corporation Income Tax Return
A corporation that is a member of a partnership must also include any allocated amounts related to the CCUS ITC from the partnership. Usually the allocated amounts are included on a T5013 slip, Statement of Partnership Income (Open in a new tab).
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
The CCUS ITC can be allocated to members of a partnership that are taxable Canadian corporations or partnerships that have taxable Canadian corporations.
The partnership must:
- File the details of how the ITC was calculated
- Complete T5013SCH78, Schedule 78, Carbon Capture, Utilization, and Storage investment Tax Credit (Open in a new tab) (2022 and later tax years). Provide a copy of these details to members of the partnership
- Provide a T5013 slip, Statement of Partnership Income (Open in a new tab) to each corporate member
- A partnership must provide a completed version of this form to each member to notify them of their allocated share for the year of:
- The CCUS ITC (box 245)
- Labour requirements addition to tax (box 246)
- Part XII.7 tax (box 269)
- A partnership must provide a completed version of this form to each member to notify them of their allocated share for the year of:
The partnership should file the T5013SCH78, Carbon Capture, Utilization, and Storage Investment Tax Credit, no later than one year after the earliest of all filing due dates for the return of income of the members for the tax year in which the partnership’s fiscal period ends, so that each member would then be able to meet their deadline to claim the credit allocated to them.
Taxable Canadian corporations that are members of the partnership must file the appropriate CCUS ITC information. Refer to the Corporation tab for details.
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, 2024 or 2025, you can file the CCUS ITC claim with the CRA by the later of:
- December 31, 2026
- One year after the filing-due date
If you have already filed your Corporation Income Tax return you may be able to:
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
Provide appropriate information with your return
Claimants are responsible for the information in their claim. Whether you prepare the claim yourself or it is done by someone else, check that your claim is complete, accurate, and supported by evidence before you submit it.
As an electronic software version of the form (Schedule 78) is available, you must complete the form electronically and file it using the same method you use to file your T2 Corporation Income Tax Return.