Line 412 – Investment tax credit
You may be eligible to claim an investment tax credit (ITC) if any of the following applies:
- you bought certain new buildings, machinery, or equipment and they were used in certain areas of Canada in qualifying activities such as farming, fishing, logging, manufacturing, or processing (for more information, go to Atlantic investment tax credit);
- you have done work that qualifies for scientific research and experimental development (SR&ED) tax incentives (for more information, go to Claiming SR&ED tax incentives);
- you employ an eligible apprentice for which you want to claim an Apprenticeship Job Creation Tax Credit (AJCTC);
- you have unclaimed credits earned in the last 10 years;
- you have received a T3 slip, showing an amount in box 41;
- you have received a 2008 version of a T5013 slip, with an amount showing in box 107, or a 2004 version of a T5013 slip, with an amount showing in boxes 38 or 138;
- you have received a T5013 slip, with an amount showing in boxes 186 or 194;
- you have received a T101 slip, with an amount showing in box 128;
- you have a partnership financial statement that allocates to you an amount that qualifies for this credit;
- you have an investment in a mining operation that allocates certain exploration expenditures to you;
- you have created licensed child care spaces for the children of your employees.
Certain renounced Canadian exploration expenses qualify for the ITC. You can claim this credit if you received Form T101, Statement of Resource Expenses, or a T5013 slip, Statement of Partnership Income, with an amount in box 194. For more information, see Form T2038(IND), Investment Tax Credit (Individuals).
How to claim the credit
For the current year, fill in the appropriate parts of Form T2038(IND), Investment Tax Credit (Individuals) and enter the amount of your credit on line 412 of Schedule 1 of your income tax return.
You can carry back the credit you earn for up to three years and use it to reduce your federal tax. To do this, complete Part E of Form T2038(IND) and submit the form with your tax return.
You can carry forward credits earned in tax years that end after 1997 for up to 20 years. To do this, complete Part D of Form T2038(IND) and submit the form with your tax return.
You may be able to claim a refund of your unused ITCs. For more information, see Line 454 - Refund of investment tax credit.
You must send your Form T2038(IND) no later than 12 months after your income tax return's due date, for the tax year in which the expenditure arises.
If you did not file your Form T2038(IND) with your tax return for the year the ITC was earned, before the deadline stated above, you have to:
- complete Form T1-ADJ, T1 Adjustment Request; or
- sign a letter indicating your name, address, daytime telephone number, and social insurance number.
Send the form or letter with the completed Form T2038(IND) to the Enquiries and Adjustment Section of your local tax centre to validate any future claim for that credit.
You can also ask for an adjustment electronically by using My Account.
Forms and publications
- General income tax and benefit package
- Information circular IC78-4R3, Investment Tax Credit Rates and its Special Release
- Form T1-ADJ, T1 Adjustment Request
- Form T101, Statement of Resource Expenses
- Slip T3, Statement of Trust Income Allocations and Designations
- Atlantic investment tax credit
- Apprenticeship Job Creation Tax Credit (AJCTC)
- Line 454 - Refund of investment tax credit
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