A separate copy of Form CO-1029.8.36.II must be completed for each entity (corporation, partnership, interposed partnership or joint venture) that claims a tax credit and for each territory where the corporation, the partnership or the joint venture used the specified property.
In addition, following the 2022 Québec budget, tabled on March 22, 2022, in which was announced the extension of the temporary increase of the tax credit for specified property acquired after March 25, 2021, and before January 1, 2024, a separate copy of Form CO-1029.8.36.II must be completed for each period in which specified expenses are incurred. For more information on the temporary increase of the tax credit relating to investment and innovation, consult Part 2.1 in Section A of the Additional Information document from the Government of Québec 2022-2023 budget.
To enter the information related to the specified properties and the specified expenses incurred during the taxation year to acquire them, you can access Form CO-1029.8.36.II PARTS 2 AND 3 from Part 2-3, Information about the specified property and specified expenses.
Tax credit refundability
To determine the amount on line 124, the program performs the following calculation:
- The total assets of the corporation for the preceding taxation year corresponds to the amount on the Total line under the statement Indicate the total assets as per the financial statements of the prior year or if this is the first fiscal period, the amount from the beginning of the year for: in the Information about the corporation section of the CO-17 return (Jump Code: QJ);
- The gross revenue of the corporation for the preceding taxation year corresponds to the total of the amounts entered on the line Gross revenue of the corporation for the preceding taxation year in the Québec CO-1029.8.36.II – Tax credit for investment and innovation section of Schedule 9 WORKCHART (Jump Code: 9 WORKCHART) in the copy of the reporting corporation and copies of the associated corporations for which the relationship code is other than 4, Related but not associated and for which the answer to the question Is the corporation covered by sections 21.20.7 to 21.20.9 QTA (it is not associated with the filing corporation for purposes of the Québec tax return)? is No.
The non-refundable portion of the tax credit for investment and innovation of a qualified corporation can be carried back to the prior three taxation years (that end after March 10, 2020) and carried forward 20 taxation years.
Printing the form
If you want to print only the completed copies of Form CO-1029.8.36.II, we recommend that you create a print format and set the value to If applicable or Always in the Print when? column for Forms CO-1029.8.36.II and CO-1029.8.36.II PARTS 2 AND 3. This way, all copies of Parts 2 and 3 will print for each copy of the form.
See Also
Guide to the Corporation Income Tax Return
Tax credit for investment and innovation (Revenu Québec web page)