How and when to claim the credit
Whether you are a taxable Canadian corporation or a taxable Canadian corporation that is a member of a partnership, you can claim the credit in the tax year in which the property becomes available for use, provided that all relevant requirements are met.
Corporation
A corporation claiming the CTM ITC must include:
- Investment Tax Credit - Corporations (T2SCH31) (Open in a new tab)
- The ITC claim for CTM is at line 170 of Schedule 31 (T2SCH31). The new version of Schedule 31 with line 170 will be published by fall 2024.
- Ensure this amount is included in the total on line 780 of your T2 Corporation Income Tax Return
- Until line 170 is available in Schedule 31
- Claim the CTM ITC by entering the full amount you want to claim at line 780 of your T2 return (if the software you are using for filing shows an error or warning message, ignore the message and continue)
- Include a document with your return stating that you included a CTM amount at line 780 and identify this amount
- 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
The CTM ITC can be allocated only to members of a partnership that are taxable Canadian corporations.
A partnership that allocates the CTM ITC to its corporate members must:
- Provide a Statement of Partnership Income (T5013) (Open in a new tab) to each corporate member
- Until this form is updated to include the CTM ITC, a partnership must notify each member in writing of their allocated share for the year of:
- The CTM ITC
- The CTM recapture
- Until this form is updated to include the CTM 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:
- Investment Tax Credit – Corporations (T2SCH31) (Open in a new tab)
- Claim the amount of credit allocated from the partnership at line 170 of Schedule 31 (T2SCH31). The new version of Schedule 31 with line 170 will be published by fall 2024.
- Ensure this amount is included in the total on line 780 of your T2 Corporation Income Tax Return
- Until line 170 is available in Schedule 31
- Claim the CTM ITC by entering the full amount you want to claim at line 780 of your T2 return (if the software you are using for filing shows an error or warning message, ignore the message and continue)
- Include a document with your return stating that you included a CTM amount at line 780 and identify this amount
- A copy of the notification in writing for any allocated amounts related to the CTM ITC that you received from the partnership.
- Usually, the allocated amounts are included on a Statement of Partnership Income (T5013). As this form is currently being updated to reflect allocations for the CTM ITC, you will receive a notification in writing from the partnership advising you of the amount allocated to you
- 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.
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
The CRA may accept late filing of the appropriate information, if filed on or before 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 CTM ITC claims for the year that includes:
- Total CTM ITC claim calculation
- Total CTM ITC claims including ITC claimed for each CTM property of the corporation
- Total CTM ITC claim amount allocated from each partnership supported by the Partnership Business Number (BN) (if applicable)
Provide a summary of the CTM ITC recapture for the year that includes:
- Total CTM ITC recapture including information on the ITC recaptured from each CTM property (if applicable)
- Total CTM ITC claim amount recaptured from each partnership supported by the Partnership Business Number (BN) (if applicable)
For each CTM property, include the following:
- Capital cost allowance (CCA) class
- Property description
- Cost
- Date available for use
- Province or territory where the property is located
- Amount subject to recapture (if applicable)
- Recapture ITC rate (if applicable)
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.
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