Line 412 - Investment tax credit

You may be eligible to claim an investment tax credit (ITC) if any of the following applies:

• you employ an eligible apprentice for which you want to claim an Apprenticeship Job Creation Tax Credit (AJCTC);
• 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 (see Atlantic investment tax credit);
• 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 T5013A slip, with an amount showing in boxes 107 or 128;
• 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 T5013A slip, Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses, with an amount in box 128. See Form T2038(IND), Investment Tax Credit (Individuals) for more information.

How to claim

For the current year, complete part A 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 B of form T2038(IND).

You can carry forward for up to 20 years credits earned in tax years that end after 1997. Submit form T2038(IND) 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.

Time limits

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 it was earned, you should submit, before the deadline stated above, a Form T1-ADJ, T1 Adjustment Request, or a signed letter indicating your name, address, daytime telephone number, and social insurance number, 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.

Also, you can ask for an adjustment electronically. To do this, use My Account.

Forms and publications

• General income tax and benefit package
• Form T2038(IND), Investment Tax Credit (Individuals)
• Form T1-ADJ, T1 Adjustment Request
• Form T101, Statement of Resource Expenses
• Slip T3, Statement of Trust Income Allocations and Designations
• Slip T5013, Statement of Partnership Income
• Slip T5013A, Statement of Partnership Income for Tax Shelters and Renounced Resource Expenses
• Information circurlar IC78-4R3, Investment Tax Credit Rates and its Special Release

Related topics

• Atlantic investment tax credit
• Apprenticeship Job Creation Tax Credit (AJCTC)
• Line 454 - Refund of investment tax credit

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