This schedule allows you to calculate the available IEG relating to the scientific research & experimental development (SR&ED) expenditures incurred in the taxation year in Alberta after December 31, 2020. It also allows you to allocate the expenditure limit (maximum of $4,000,000) between the associated corporations that claim such credit. The amounts in the schedule are calculated based on the information reported in AT1 Schedule 29 LISTING (Jump Code: A29 LISTING).
Section Agreement among associated corporations
Line 208, Maximum expenditure limit
To calculate the maximum expenditure limit allowed on this line, you must choose among all the associated corporations that are claiming an IEG for scientific research & experimental development (SR&ED) expenditures incurred in Alberta after December 31, 2020, the corporation that has the longest taxation year.
The Section Alberta Schedule 29 - Alberta innovation employment grant in Schedule 9, Related and Associated Corporations Workchart (Jump Code: 9 WORKCHART), allows you to allocate the expenditure limit (according to line 208 in Form AT1 Schedule 29) between each of the associated corporations that are claiming an IEG relating to SR&ED incurred in Alberta in the taxation year after December 31, 2020. The amount allocated cannot exceed the maximum expenditure limit of a corporation calculated from its taxation year. To correctly calculate the IEG, when the corporation is not associated, enter the taxable capital employed in Canada in the last taxation year. When the corporation is associated, it is the taxable capital employed in Canada in the last taxation year ending in the preceding calendar year of the filing corporation and all of its associated corporations that must be entered in column 265. In addition, when the corporation is not an associated corporation for the purpose of the IEG calculations, enter the eligible expenditures of the qualified corporation incurred in the two preceding taxation years. When the corporation is an associated corporation for the purpose of the IEG calculations, it is the eligible expenditures of the filing corporation and its associated corporations that were incurred in the last taxation year ending in the preceding calendar year and the taxation year preceding that particular year.
Tip: For more information on the T2 Data Connection, please consult the T2 Data Connection guide, available in the Professional Centre.
See Also
AT1 Schedule 29, Listing of Innovation Employment Grant Projects Carried out in Alberta
Guide to Claiming the Alberta Innovation Employment Grant
Information circular IEG-1 – Alberta Innovation Employment Grant