How to claim the credit
You claim the credit with either your corporate income tax return or your trust income tax and information 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 Clean Electricity ITC must include:
- 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
- information on Schedule 31, Investment Tax Credit – Corporations (T2SCH31):
- Claim the Clean Electricity ITC at line 185 of Schedule 31
- Ensure this amount is included in the total on line 780, “Investment tax credit refund from Schedule 31,” of your corporation income tax return
- Tax-exempt entities claiming the Clean Electricity ITC must also include their written agreement.
A corporation that is a member of a partnership must also include any allocated amounts related to the Clean Electricity ITC from the partnership. Usually the allocated amounts are included on a T5013 slip, Statement of Partnership Income.
You should file the schedule and details listed above with your corporation income tax return for the year, using the same method you use to file your taxes.
Partnership
A partnership that allocates the Clean Electricity ITC to its members that are qualifying corporations or qualifying trusts must:
- advise the amount of the credit allocated to each member
- provide a T5013 slip, Statement of Partnership Income, to each member
- 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
Qualifying corporations or trusts that are members of the partnership must file the appropriate Clean Electricity ITC information. Refer to the Corporation or Trust tab for details.
Trust
The Clean Electricity ITC can be claimed only by a qualifying trust.
A qualifying trust claiming the Clean Electricity ITC must:
- File the details of how the ITC was calculated:
- Download and complete Form T1099, Clean Electricity Investment Tax Credit
- Until an electronic software version of the form is available for use, you must attach a copy of the PDF form with your return
- Claim the amount on Field 881 (line 55) on the T3, Trust Income Tax and Information Return
You should file the details of how you calculated the ITC with your trust income tax and information return for the year, using the same method you use to file your taxes.
Written agreement for tax-exempt entities
What to include in your agreement
The following details should be included in a letter and filed with your Clean Electricity ITC form:
- The type of corporation you are at the end of the tax year
Date, contact information, and a statement by the authorized signing officer that:
They are the authorized signing officer of the corporation and they certify that the corporation agrees to be subject to the provisions of the Act for the corporation’s Clean Electricity ITC, with any modifications to those provisions that the circumstances require.
- Name and contact information of the contact person, if they are different from the authorized signing officer.
Additional tax incentives are available for clean electricity property that is also included in Classes 43.1 and 43.2. These tax incentives could include an accelerated capital cost allowance.
Refer to Tax incentives for Clean Energy Technologies described in Class 43.1 and 43.2.
Due date to file for the credit
You must file by no later than the later of:
- one year after the filing due date of either your corporation income tax return or your trust income tax and information return
- December 31, 2026
Refer to:
Provide appropriate information with your return
Until the form for showing how you calculated the ITC becomes available, you must provide information with your return as described below:
What to provide with your return
Provide a summary of Clean Electricity ITC claims in the year that includes:
- the total Clean Electricity ITC claims in the year with a list of each clean electricity property, with your business number (BN)
- the total Clean Electricity ITC claims allocated from a partnership for each Clean Electricity ITC claim with the partnership BN
- the labour requirement election and attestation
Provide a summary of the Clean Electricity ITC recapture for the year that includes:
- the total Clean Electricity ITC recapture, including information on the ITC amount recaptured from each clean electricity property
- the total Clean Electricity ITC claim amount recaptured from each partnership, with the partnership BN
For each clean electricity property, provide:
- the capital cost allowance class
- the property type
- the province or territory where the property is located
- Clean Electricity ITC calculation information, including:
- the capital cost of each eligible clean electricity property
- the ITC rate applied to each eligible clean electricity property
- details of any property disposition, export from Canada, or conversion of an eligible clean electricity property to an ineligible use
- the amount subject to recapture
- the ITC recapture rate
- the amount subject to recovery tax
How to attach documents to your return
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For corporations: Attaching documents to your return
Using the T2 Attach-a-doc-service
The T2 Attach-a-doc service allows corporations to attach supporting documents such as certificates when they file their corporation income tax 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 corporation income tax return electronically within the last 24 hours.
Before filing an attachment, make sure you have:
- your EFILE number and password, or a web access code for the corporation
- the date and time of the return you want to attach the document to
- the confirmation number of the return
Also:
- 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 files types for the documents: pdf, doc, docx, xls, xlsx, rtf, txt, jpg, jpeg, tiff, tif, or xps
How to attach documents to your corporation income tax return
- Select “Attach-a-doc” from within the T2 software (you have 24 hours to attach a document to an electronically submitted return.)
- You will need the date and time of the 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 send you a confirmation
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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 files types for the documents: pdf, doc, docx, xls, xlsx, rtf, txt, jpg, jpeg, tiff, tif, or xps
How to submit documents related to your partnership return
- Sign in to your CRA My Business Account (My Business Account)
- On the My Business Account Overview page, on the 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 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
- Select “Next”
- Use the “ + Attachments” button to attach all supporting documents (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, attach documents separately)
- After you attach all the documents you wish to submit, select “Next”
- Review the “Reason for submission”
- Review the attached documents
- After you confirm you wish to proceed, select “Submit” and the CRA will send you a confirmation
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For trusts: Submitting documents related to your trust income tax and information 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, or xps
How to submit documents related to your trust income tax and information return
Use the Submit documents online service to attach documents to your return.
Refer to: Submitting and filing documents online related to T3