Line 41200 – Investment tax credit

Note: Line 41200 was line 412 before tax year 2019, and line 45400 was line 454 before tax year 2019.

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

Certain renounced Canadian exploration expenses qualify for the ITC. You can claim this credit if you have reported an amount in Part IV of Form T1229, Statement of Resource Expenses and Depletion Allowance.

For more information, see Form T2038(IND), Investment Tax Credit (Individuals).

Filling in your tax return

For the current year, fill in the parts A, B, C and D of Form T2038(IND) and enter the amount of your credit on line 41200 of the return.

You can carry back the credit you earn for up to three years and use it to reduce your federal tax by filling in Part E of Form T2038(IND) and filing it with your paper return.

You can carry forward credits earned in tax years ending after 1997 for up to 20 years by filling in Part F of Form T2038(IND) and filing it with your paper return.

You may be able to claim a refund of your unused ITCs. For more information, go to Line 45400 – Refund of investment tax credit.

Time limits

You must file your Form T2038(IND) no later than 12 months after your tax return's due date for the tax year the expenditure arises.

If you did not file your Form T2038(IND) with your return for the year the ITC was earned and before the deadline stated above, you have to do one of the following:

Send Form T1-ADJ or your signed letter with a completed Form T2038(IND) to the Enquiries and Adjustment Division of your local tax centre to validate any future claim for that credit.

You can also ask for an adjustment electronically using My Account.

Forms and publications

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