Release Notes - CCH iFirm Taxprep T2 2025 v.1.0 (2025.10.39)

Overview

CCH iFirm Taxprep T2 2025 v.1.0 is designed to process corporate tax returns with taxation years beginning on or after January 1, 2023, and ending on or before October 31, 2025.

 

Here is a summary of the main topics addressed in this document.

New Forms

The following forms have been added to the program:

• Schedule 76, Clean Technology Manufacturing Investment Tax Credit

• Schedule 78, Carbon Capture, Utilization, and Storage Investment Tax Credit

• Schedule 130, Excessive Interest and Financing Expenses Limitation

• TP-21.4.39, Cryptoasset Return

Automobile limits for the 2025 year

The automobile deduction limits and automobile benefit rates applicable in 2025 have been added to this version.

Update of the T106 Slip and the T106 Summary

The new versions of the T106 slip and summary have been integrated into this version. They apply only to taxation years beginning after 2024. For more information, consult the note relating to this topic.

 

If you want to learn about the new non-tax related features delivered with this new CCH iFirm Taxprep version, consult the Technical Release Notes.

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New Forms

Federal

Schedule 76, Clean Technology Manufacturing Investment Tax Credit

Schedule 76 is used to calculate the clean technology manufacturing (CTM) investment tax credit (ITC). This refundable tax credit is available to a taxable Canadian corporation or a taxable Canadian corporation that is a member of a partnership that has acquired CTM property after December 31, 2023, and that becomes available for use before January 1, 2035.

In Part 1, CMT ITC calculation, you must manually enter all the information in columns 100 to 125 and on line 150 to calculate the clean technology manufacturing ITC for each asset. However, if code 6, Clean technology manufacturing (Schedule 76), is selected in the Investment tax credit code drop-down list on a copy of Schedule 8 WORKCHART ADD, the values in the Class, Description, Acquisition date and Adjusted capital cost fields in the Information relating to the property – CCA other than classes 10.1, 13 and 14 and Addition sections of this copy will then be transferred to columns 100, 105, 110 and 115 of a new row in Part 1 of Schedule 76.

The clean technology manufacturing ITC rate is 30% of the capital cost of eligible CTM property that is acquired and becomes available for use after December 31, 2023, and before January 1, 2032.

Note that you cannot claim the clean technology manufacturing ITC if you are claiming the clean economy ITC on line 140, 155 or 200 in Part 24 of Schedule 31 for the same property.

In Part 2, Recapture of CMT ITC, you must enter the amount(s) of clean technology manufacturing ITCs you have already received and are required to recapture in a taxation year for CTM property you have acquired in the year or in any of the previous 10 calendar years when:

• the CTM property is converted to a CTM use;

• the CTM property has been exported from Canada; or

• the CTM property has been disposed of.

In addition, this schedule applies when the corporation is resident in Canada and at least one of the following conditions is met:

• a value is calculated on line 155 of Part 1; or

• a value is calculated on line 245 of Part 2.

For more details on the clean technology manufacturing ITC, please consult the help and section 127.49 Income Tax Act (ITA).

Schedule 78, Carbon Capture, Utilization and Storage Investment Tax Credit

Schedule 78 is used to calculate the carbon capture, utilization and storage (CCUS) investment tax credit (ITC). This refundable tax credit is available to a taxable Canadian corporation or a taxable Canadian corporation that is a member of a partnership that has incurred eligible expenses after December 31, 2021, and before January 1, 2041.

In Part 1, CCUS ITC, you must manually enter all the information in columns 100 to 135, in columns 145 and 165 as well as on line 190 to calculate the CCUS ITC for each qualified CCUS expenditure. To correctly calculate the specified percentage on line 155 of Part 1, you must select the type of CCUS expenditure from the drop-down list in column 110 and enter a date in the custom column Enter the date on which the qualified CCUS expenditures were incurred, which has been added on screen only. This column is also used to calculate the amount on lines 170 and 185.

However, if code 4, Carbon capture, utilization and storage (Schedule 78), is selected in the Investment tax credit code drop-down list and if an NRCan project code is selected in the If the property is related to code 4, Carbon capture, utilization and storage (Schedule 78) of the Investment tax credit code drop-down list above, specify which NRCan project code (line 100) of Schedule 78 the property is related to in order to complete the data transfer field of a copy of Schedule 8 WORKCHART ADD, the values in the Class, Description, Acquisition date and Adjusted capital cost fields in the Information relating to the property – CCA other than classes 10.1, 13 and 14 and Addition sections of this copy will then be transferred to columns 105 and 125 as well as to custom column Enter the date on which the qualified CCUS expenditures were incurred of a new row in Part 1 of the corresponding copy of Schedule 78.

The CCUS ITC rate for qualified CCUS expenditures incurred after December 31, 2021, and before January 1, 2031, is:

• 60% for carbon capture (ambient air);

• 50% for carbon capture (other);

• 37.5% for carbon transportation;

• 37.5% for carbon storage; or

• 37.5% for carbon use.

You must elect to meet the labour requirements for wage requirements and apprenticeship requirements in order to benefit from the regular credit rate (percentage determined on line 155 of Part 1) for each of the designated work sites in column 165 of Part 1. If you meet the labour requirements, you must complete Part 2, Attestation and election to meet labour requirements. However, if you choose not to meet the labour requirements, the percentage determined on line 155 of Part 1 will be reduced by 10 percentage points (reduced tax credit rate) for specified property prepared or installed after November 27, 2023, and you will not need to complete Part 3. For more details on labour requirements, see section 127.46 ITA.

Note that you cannot claim the CCUS ITC if you are claiming the clean economy ITC on line 140, 155 or 170 in Part 24 of Schedule 31 for a particular asset.

In Part 4, Part XII.7 tax, the table for each project period and lines D to 410 are applied to recover some or all of the cumulative CCUS development tax credit and the CCUS refurbishment tax credit in certain circumstances where the actual eligible use percentage is less than the projected eligible use percentage. Note that when you select another period from the drop-down list on line 001, the percentages on lines 002 and 003 will not be retained. Also, on screen only, line I has been separated into two custom lines: lines 1, All the CCUS refurbishment tax credits for the current tax year, and 2, All the CCUS refurbishment tax credits for the previous tax years. Finally, if you dispose of the property or export it from Canada during the total CCUS period review (see paragraph 211.92(9)(b) and subsection 211.92(10) ITA), you must complete the table for lines 415 to 450 as well as the custom column Select the type of disposition that relates to the amount on line 445 that has been added, on screen only, to be able to correctly calculate the amounts on lines 455 and 460.

In addition, this schedule applies when the corporation is resident in Canada and at least one of the following conditions is met:

• a value is calculated on line A of Part 1;

• a value is calculated on line 330 of Part 3; or

• a value is calculated on line L of Part 4.

When rolling forward a client file, the data entered on lines 100, 101, 102 and 103 above Part 1 and the values entered on lines 001, 002 and 003 in Part 4 will be retained. In addition, in Part 1, the amount on line 170 will be transferred to line 175. Finally, the amount on line 185 in Part 1 will be added to the amount on the custom line All the CCUS refurbishment tax credits for the previous tax years, and the result will be transferred to the custom line All the CCUS refurbishment tax credits for the previous tax years of Part 4 for a cumulative total of the CCUS refurbishment tax credits for all previous years.

For more details on the CCUS ITC, please consult the help as well as sections 127.44 and 211.92 ITA.

Schedule 130, Excessive Interest and Financing Expenses Limitation

This schedule must be completed by any corporation that is subject to the excessive interest and financing expenses limitation rules or that is a party to any election under these rules. The main provisions for these rules are paragraph 12(1)(l.2), sections 18.2 and 18.21, and clause 95(2)(f.11)(ii)(D) of the ITA.

In Part 2F, Adjusted taxable income (ATI), certain lines are calculated based on the data entered in other schedules of the return. For details regarding these calculations, consult the Help.

In order to apply the excessive interest and financing expenses limitation rules, certain amounts calculated in Schedule 130 are reported in other schedules of the return, namely:

• Amount B in Part 2L, which corresponds to the excess interest and financing expenses under subsection 18.2(2) ITA, is reported to line 251 in Schedule 1;

• Amount from line 158, which corresponds to the add-back of partnership interest and financing expenses under paragraph 12(1)(l.2) ITA, is reported to line 252 in Schedule 1;

• Amount A in Part 2O, which corresponds to the restricted interest and financing expenses for the year, is reported to line 710 in Schedule 4.

 

Québec

TP-21.4.39, Cryptoasset Return

This form is used to report cryptoassets that the corporation owns, acquires, disposes of (sells, transfers, trades, donates, etc.) or uses. When box 19b of the CO-17 return is set to Yes, Form TP-21.4.39 must be completed.

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Updated Forms

* Note that form titles followed by an asterisk (*) have been updated according to the most recent version issued by the applicable tax authority.

Federal

Schedule 200, T2 Corporate Income Tax Return*

Line 336, Restricted interest and financing expenses from Schedule 4, has been added to Part Taxable income. The amount calculated on this line is equal to the amount on line 730 in Part 8, Restricted interest and financing expenses (RIFE), of Schedule 4.

In addition, line 726, Part XII.7 tax payable from Schedule 78, has been added to Part Summary of tax and credits. The amount calculated on this line is equal to amount L in Part 4, Part XII.7 tax, of Schedule 78.

For the calculation of the small business deduction, the part Taxable capital business limit reduction for tax years starting before April 7, 2022 as well as amounts E1 and E3 have been removed. Amount E2 becomes amount E.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the value entered in amount E1 is not retained. The overridden value entered in amount E3 is retained in amount E.

Schedule 1, Net Income (Loss) for Income Tax Purposes*

Following the update of the schedule, lines 251 to 254 have been added to take into account the new excessive interest and financing expenses limitation rules under subsections 18.2(2) and 18(4) and paragraphs 12(1)(l.1) and 12(1)(l.2) ITA. The data for these lines can now be imported into the return using the T2 Auto-fill service.

Schedule 4, Corporation Loss Continuity and Application*

Part 8 – Restricted interest and financing expenses (RIFE) has been added to the schedule. Consequently, line 1B, Restricted interest and financing expenses (RIFE) deducted in the year, has been added to Part 1 – Non-capital losses.

When rolling forward a file in which an amount has been entered on line 780, that amount will be carried over to line 700.

Schedule 6, Summary of Dispositions of Capital Property*

Schedule 8 WORKCHART, Capital Cost Allowance (CCA) Workchart

The limit for capital cost allowance (CCA) increases to $38,000 (before taxes) for Class 10.1 passenger vehicles acquired in the taxation year after December 31, 2024.

Following the addition of Schedule 76, when rolling forward a client file, the amount entered in the ITC (prior year) field in the copy of the corresponding class in Schedule 8 WORKCHART for which code 6, Clean technology manufacturing (Schedule 76), is selected in the Investment tax credit code drop-down list of a copy of Schedule 8 WORKCHART ADD will be equal to the amount in column 145 in Part 1 of Schedule 76 of the class corresponding to that in Schedule 8 WORKCHART. However, if a class is present more than once in Part 1 of Schedule 76, the amount entered in the ITC (prior year) field in the copy of the corresponding class from Schedule 8 WORKCHART will be equal to the sum of the amounts in column 145 in Part 1 of Schedule 76 for which we have the corresponding class.

In addition, following the addition of Schedule 78, when rolling forward a client file, the amount entered in the ITC (prior year) field in a copy of the corresponding class in Schedule 8 WORKCHART for which code 4, Carbon capture, utilization and storage (Schedule 78), is selected in the Investment tax credit code drop-down list and for which an NRCan project code is selected in the field If the property is related to code 4, Carbon capture, utilization and storage (Schedule 78) of the Investment tax credit code drop-down list above, specify which NRCan project code (line 100) of Schedule 78 the property is related to in order to complete the data transfer of a copy of Schedule 8 WORKCHART ADD will be equal to the amount in column 160 in Part 1 of Schedule 78 of the class corresponding to that in Schedule 8 WORKCHART. However, if a class is present more than once in Part 1 of Schedule 78, the amount entered in the ITC (prior year) field in the copy of the corresponding class from Schedule 8 WORKCHART will be equal to the sum of the amounts in column 160 in Part 1 of Schedule 78 for which we have the corresponding class.

Schedule 8 WORKCHART ADD, Additions and Dispositions Workchart

The custom field If the property is related to code 4, Carbon capture, utilization and storage (Schedule 78), of the Investment tax credit code drop-down list above, specify which NRCan project code (line 100) of Schedule 78 the property is related to in order to complete the data transfer has been added to section Information relating to the property – CCA other than classes 10.1, 13 and 14. Using the drop-down menu of this new field to select the NRCan project code, the program will be able to link the property to the corresponding copy of Schedule 78. As a result, the values in the Class, Adjusted cost base and Acquisition date fields of the Addition section of this copy will be transferred to columns 105 and 125 and to the custom column Enter the date on which the qualified CCUS expenditures were incurred of a new row in Part 1 of the corresponding copy of Schedule 78.

Schedule 12, Resource-Related Deductions*

Lines AA to EE have been added to Part 5 to calculate the accelerated Canadian development expenses (ACDE) deduction and lines FF to JJ have been added to Part 6 to calculate the accelerated Canadian oil and gas property expenses (ACOGPE) deduction when the taxation year ends after December 31, 2024. As such, the custom lines ACDE incurred before 2024 to calculate the average rate for a taxation year straddling January 1, 2024 in Part 5 and ACOGPE incurred before 2024 to calculate the average rate for a taxation year straddling January 1, 2024 in Part 6 have been removed. The fields used to display the rate applicable to the calculation of the lines Current-year claim – ACDE and Current-year claim – ACOGPE have been removed and replaced respectively by lines CC and DD in Part 5 and lines HH and II in Part 6.

When opening a return prepared with a previous version of CCH iFirm Taxprep T2, the amount entered on the custom line ACDE incurred before 2024 to calculate the average rate for a taxation year straddling January 1, 2024 is retained on the line Portion of line 346 incurred before 2024 (amount AA) when the taxation year begins before and includes January 1, 2024. The same principle applies when an amount is entered on the custom line ACOGPE incurred before 2024 to calculate the average rate for a taxation year straddling January 1, 2024; that amount is retained on the line Portion of line 446 incurred before 2024 (amount FF). In addition, if the value in the rate field used to calculate the line Current-year claim – ACDE is entered by override, the amount of this deduction is retained as a substituted value on line EE. Similarly, if the value in the rate field used to calculate the line Current-year claim – ACOGPE is entered by override, the amount of this deduction is retained as a substituted value on line JJ.

Schedule 21, Federal and Provincial or Territorial Foreign Income Tax Credits and Federal Logging Tax Credit*

Amounts 7F and 7G have been added to indicate, respectively, the additional tax on personal services business income (line 560 from the section Part I tax of Schedule 200) and the additional tax on banks and life insurers (line 565 from the section Part I tax of Schedule 200) to be added to the calculation of Part I tax otherwise payable (foreign non-business income tax credit) on line 610.

Similarly, amounts 8F and 8G have been added to indicate, respectively, the additional tax on personal services business income and the additional tax on banks and life insurers to be added to the calculation of Part I tax otherwise payable (foreign business income tax credit) on line 620.

Schedule 31, Investment Tax Credit – Corporations

Following the addition of Schedule 76, line 170 of Part 24 is now calculated from line 155 of Part 1 in Schedule 76. In addition, line 25E is now calculated from line 245 of Part 2 in Schedule 76.

Finally, following the addition of Schedule 78, line 200 of Part 24 is now calculated from line A of Part 1 in Schedule 78.

Schedule 53, General Rate Income Pool (GRIP) Calculation

The calculation of line 100, GRIP at the end of the previous tax year, has been modified for copies 2 and following. When this is the first year after an amalgamation and the return is prepared by rolling forward the return of one of the predecessor corporations, the amount on line 100 will be zero.

In a previous version, diagnostics have been added to Part Eligibility for the various additions to prompt the user to answer all sub-questions if the corporation was formed as a result of an amalgamation or if it wound up a subsidiary in the previous taxation year and to ensure that Parts 3 and 4 have been completed when required. These diagnostics have been modified to apply to copies 2 and following.

Schedule 54, Low Rate Income Pool (LRIP) Calculation

The calculation of line 100, LRIP at the end of the previous tax year, has been modified for copies 2 and following. When this is the first year after an amalgamation and the return is prepared by rolling forward the return of one of the predecessor corporations, the amount on line 100 will be zero.

In a previous version, diagnostics have been added to Part Eligibility for the various additions to prompt the user to answer all sub-questions if the corporation was formed as a result of an amalgamation or if it wound up a subsidiary in the previous taxation year and to ensure that Parts 5 and 6 have been completed when required. These diagnostics have been modified to apply to copies 2 and following.

Schedule 56, Part II.2 Tax on Repurchases of Equity*

Schedule 63, Return of Fuel Charge Proceeds to Farmers Tax Credit*

The 2024 payment rate for designated provinces is 0.229%. In addition, lines for the 2024 year have been added to Part 10.

Schedule 150, Net Income (Loss) for Income Tax Purposes for Insurance Companies*

The Canada Revenue Agency has changed the calculation of line 110 from “line 108 minus line 109” to “line 108 plus line 109”. We have added a diagnostic to advise you that a negative amount credits the net income/loss.

Schedule 151, Investment Revenue From Designated Insurance Property for Insurance Companies*

Lines a and b have been added, on screen only, to Part 5 – Designation tests – Regulations 2400(1), 2401(2) and 2401(4) to determine if the value of Canadian equity property designated for the year is not greater than the equity limit for the year. As a result, the previous line a has been renamed line c and the previous line b has been renumbered line 760.

In addition, lines 744 and 760 no longer accept negative values. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if a negative value has been entered on one of these lines through an override, it will not be retained.

T2 Bar Code Return

The line Part XII.7 tax payable (from line 726 of the T2 return) has been added to Part Certification of the form.

Automobile Expenses, Non-Deductible Leasing Costs and Other Expenses

The limit relating to the acquisition cost of an automobile is increasing to $38,000, and the monthly limit for deductible leasing costs is increasing to $1,100 in respect of leasing contracts beginning after December 31, 2024.

Client Letter Worksheet

Box TP-21.4.39 has been added to sections CO-17 – Paper format and CO-17 – Internet filing. When the box is selected in one of these sections, the paragraph relating to Form TP-21.4.39 is included in the letter Filing Instructions. Please note that this box is automatically selected in the relevant section when Form TP-21.4.39 is applicable.

Statement of Real Estate Rental Properties (Regulation 1100(11))

For expenses incurred after 2023, section 67.7 of the ITA prevents the deduction of non-compliant expenses incurred in relation to a short-term residential rental. To account for non-compliant amounts, the following three lines have been added:

In Part Income:

• Line Short-term rental income
  
  This line is used to show amounts earned in respect of all short-term rentals relating to the property.

In Part Expenses:

• Line Non-compliant amount of expenses related to short-term rentals
  When an amount is entered on this line, it reduces the deductible expenses related to the rental property. The total of the amounts entered on this line in all copies of the RENTAL form should also be entered on one of the lines 295 of Schedule 1, as specified in the 2024 T2 Guide.

• Line Non-compliant amount of CCA related to short-term rentals
  The amount entered on this line represents the total of the amounts entered on line Non-compliant CCA amount (short-term rentals) in the copies of Schedule 8 WORKCHART for CCA classes other than classes 10.1, 13 and 14 that are linked to the copy of the RENTAL form.

Corporate Taxpayer Summary

To help you better track your clients’ tax situation, line Restricted interest and financing expenses (RIFE) has been added to sections Summary of federal carryforward/carryback information and Summary of provincial carryforward amounts.

T106 Slip*; and

T106 Summary, Information Return of Non-Arm's Length Transactions with Non-Residents*

A new version of Form T106, which is only displayed when the taxation year covered by the return begins after 2024, has been integrated to the program. For taxation years that begin before 2025, the previous version of the form should be used.

In the 2025 version of Form T106 Summary, question 9 has been modified, question 10 has been added, former question 10 has become question 11 and fields have been added to indicate primary account numbers. The fields for primary account numbers will be validated upon entry. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, when the taxation year begins after December 31, 2024, if an account number containing the characters RP in the tenth and eleventh position of the number had been entered, the number will be retained. Any other number will not be retained.

As for the T106 slip, questions 4 and 5 have been added. Question 4 has become question 6; however, the relationship type options have been modified. Option 1, Non-resident is controlled by the reporting person/partnership has been replaced by option 1, Non-resident is a controlled foreign affiliate (CFA) of the reporting person/partnership and option 2, Non-resident is a foreign affiliate of the reporting person/partnership other than a CFA. Options 2 and 3 are now options 3 and 4. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, when the taxation year begins after December 31, 2024, if option 1 had been selected, the choice will not be retained. In addition, the question If “1”, is the non-resident in a country with which Canada does not have a tax treaty? has been removed from the latest version of the slip.

Amounts to be entered in Part III must be positive. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, negative amounts that had been previously entered will not be retained.

The drop-down list used to indicate the transfer pricing method (TPM) has been modified. Code 07, previously Other, is now Advanced Tariff Arrangement, and code 08 is Other. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, when the taxation year begins after December 31, 2024, if code 07 had been previously selected from the list, it will be replaced by code 08.

Finally, if you select box If this is an amended return, tick this box in Form T106 Summary and you elect not to file the return electronically, a new line will be displayed to indicate the nature of the change to the T106 summary and/or T106 slip. If you select Amended, Cancelled or Additional, this option will be printed at the top of the summary and/or the slip.

T2054, Election for a Capital Dividend Under Subsection 83(2)*

To meet CRA requirements, Part 6 has been modified to allow a partnership account number to be entered on line 338.

T2183, Information Return for Electronic Filing of Special Elections*

The field HH:MM:SS has been added to Part 5, Certification and authorization.

AgriStability and AgriInvest Programs*

AgriStability and AgriInvest Programs – Prince Edward Island*

 

Québec

CO-17.A.1, Net Income for Income Tax Purposes

Following the addition of lines 251 to 254 to Schedule 1, lines have been added at the end of the Add subsection of the Additional list section to indicate amounts related to the new excessive interest and financing expenses limitation rules under subsections 18.2(2) and 18(4) and paragraphs 12(1)(l.1) and 12(1)(l.2) ITA.

In addition, the line Book loss on joint ventures or partnerships has been removed from the Additional list section. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the amounts entered on this line, in the Current year and/or Prior year columns, will be deducted from the amounts entered in the respective columns of line 122.

CO-17S.4, Capital Losses, Listed Personal Property Losses and Restricted Interest and Financing Expenses (RIFE) (QC Sch. 4)

A section has been added to calculate the amount you can deduct as restrictive interest and financing expenses.

According to the Information Bulletin 2022-4 published on June 9, 2022, by the Ministère des Finances du Québec, Québec’s tax legislation will be amended to incorporate the interest deductibility limitation measure. We have calculated the amount on line Applied current year based on the federal tax legislation, but it is possible that by the time you complete the return, Québec’s tax legislation may have been amended and differ from the Income Tax Act. If so, make the necessary adjustments using an override. No line has been added to the CO-17 return at this time. Add the amount on this line to line 99 of Form QC L265/266.

When rolling forward a file in which the amount on line Closing balance differs from the amount on line 780 of Schedule 4, this amount will be carried to line Opening balance using an override.

CO-737.18.CI, Deduction for the Commercialization of Innovations in Québec*

The calculation of line 15, Adjusted income for the taxation year, has been modified to correspond to the definition of adjusted income in section 737.18.43 TA. For a taxation year beginning after December 31, 2023, the amount on line 15 will correspond to the adjusted income excluding dividend income, interest income, any capital gain (or loss) and any income or loss from an interest in a partnership.

Similarly, the calculation on line 19, Adjusted gross income for the taxation year, has been modified to correspond to the definition of adjusted gross income in section 737.18.43 TA. For a taxation year beginning after December 31, 2023, the amount on line 19 will correspond to the adjusted gross income excluding dividend and interest income.

When opening a return prepared with a previous version of CCH iFirm Taxprep T2, if amounts are entered using an override on lines 15 and 19, they will be retained. However, please check if you need to make any adjustments. For more detailed information on these calculations, please refer to the Help of Form CO-737.18.CI.

For a taxation year beginning after December 31, 2023, the amounts entered on lines 45, 48, 56, 60 and 61 must correspond to amounts paid for R&D work that has contributed directly to the creation, the development or the improvement of the given asset. For a taxation year beginning before January 1, 2024, any R&D expenditures made in Québec may be entered on these lines. When opening a return prepared with a previous version of CCH iFirm Taxprep T2, if an amount is entered on one of these lines, please check whether you need to make any adjustments. For more details on this data, please refer to the Help of Form CO-737.18.CI.

CO-1029.8.36.II, Tax Credit for Investment and Innovation

The following changes have been made to the list of geographic codes that can be found on lines 14a.1, 14a.2 and 14a.3 of Part 2, Information about the specified property:

• Code 88055 Amos has been replaced by code 88057 Amos.

• Codes 99820 Oujé-Bougoumou and 92903 Sainte-Élisabeth-de-Proulx have been added.

• Code 88060 Saint-Félix-de-Dalquier has been replaced by code 88057 Amos.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if code 88060 Saint-Félix-de-Dalquier had been entered, it will be replaced by code 88057 Amos.

COZ-1179, Logging Operations Return*

Following the update of the form, the additions below have been made to section 8.1:

• Line 101, Enter the amount from line 100 or line 77j, whichever is less;

• Line 101a, Amount from line 78.

Line 101 is now line 101b, Subtract line 101a from line 101. If the result is negative, enter 0. Portion of the logging tax payable from the taxation year covered that can be deducted from the income tax payable and that was not used to reduce the logging tax payable calculated in section 5.3.

 

British Colombia

Schedule 428, British Columbia training tax credit*

Schedule 430, British Columbia Shipbuilding and Ship Repair Industry Tax Credit*

 

Alberta

AT1, Alberta Corporate Income Tax Return*

AT1 Schedule 12, Alberta Income/Loss Reconciliation

The custom line Restricted interest and financing expenses has been added to Area B – Taxable income for Alberta. If an amount of restricted interest and financing expenses is entered on this line and the schedule is applicable, the program will display a diagnostic asking you to inform the Alberta Tax and Revenue Administration of this amount of restricted interest and financing expenses in writing when submitting the return so it can make the necessary adjustments manually.

AT1 Schedule 21, Alberta Calculation of Current Year Loss and Continuity of Losses

As a result of the addition of line 336 to the Taxable income section of Schedule 200, the existing line A has been replaced with line Restricted interest and financing expenses (RIFE) deducted in the year (enter as a positive amount) in the CALCULATION OF CURRENT YEAR NON-CAPITAL LOSS section. As a result, the former line A has been renamed line B.

AT1 Schedule 29, Alberta Innovation Employment Grant*

Lines 250, Eligible expenditures for the first preceding year, and 260, Eligible expenditures for the second preceding year, are now protected cells, and data relative to these lines can now only be entered on lines 250 and 260 from the Alberta AT1 Schedule 29 – Alberta innovation employment grant section of Schedule 9 WORKCHART. This data is transferred to Alberta Schedule 29 when the answer to line 100, Is the corporation associated with one or more corporations for IEG purposes?, is Yes.

 

Saskatchewan

Schedule 411, Saskatchewan Corporation Tax Calculation*

The line 3B used for the calculation of the Saskatchewan tax at the lower rate for tax years ending after June 30, 2025, has been removed from Part 3 since the lower rate of tax of 1% is extended indefinitely.

 

Manitoba

MCT1, Corporation Capital Tax Return

In accordance with the Manitoba budget tabled on March 20, 2025, for fiscal years beginning after March 31, 2025, the corporate capital tax paid by Crown corporations is eliminated. The form is no longer applicable when the fiscal year start date is after March 31, 2025, and you answered Yes to the question Is the corporation a Crown corporation?.

 

Yukon

Schedule 444, Yukon Business Carbon Price Rebate*

The calculation of the prescribed inclusion rate on lines 105 of Part 1 and 205 of Part 4 has been updated to take into account the amended rates for assets included in CCA classes 43.1, 43.2, 54, 55 and 56 when the taxation year ends after March 31, 2025.

In addition, the calculation on lines 175 of Part 3 and 500 of Part 6 has been updated to take into account the mining business rebate factor and the general business rebate factor for a taxation year ending after March 31, 2025, as announced by the Yukon government.

 

Nova Scotia

Schedule 341, Nova Scotia Corporate Tax Reduction for New Small Businesses

Following Nova Scotia's Bill 68, tabled on April 5, 2025, a line has been added to take into account the lower tax rate, which was decreased from 2.5% to 1.5% on April 1, 2025.

Schedule 346, Nova Scotia Corporation Tax Calculation

In accordance with Bill 68 tabled on April 5, 2025, the business limit is increasing from $500,000 to $700,000 effective April 1, 2025. As a result, an additional section has been added to Part 1 of the form and the existing Part 2 has been replaced with a new section.

The former Part 2 is now Part 3. Lines have been added to take into account the reduction in the lower tax rate from 2.5% to 1.5% effective April 1, 2025.

 

Prince Edward Island

Schedule 322, Prince Edward Island Corporation Tax Calculation

Following the announcement of the 2024–2025 budget tabled on April 10, 2025, the business limit is increasing from $500,000 to $600,000 effective July 1, 2025. As a result, an additional section has been added to Part 1 of the form and the existing Part 2 has been replaced with a new section.

The former Part 2 is now Part 3. Lines have been added to take into account the reduction in the higher tax rate from 16% to 15% effective July 1, 2025.

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Corrected Calculations

The following problems have been corrected in version 2025 1.0:

• Schedule 8 WORKCHART and AUTO LEASE – Automobile expense deduction limits for acquisitions and leases entered into after 2024 are incorrect

• Schedule 63 – The current version of Schedule 63 does not take into account the 2024 payment rate

• Schedule 8 WORKCHART – Copies for class 10.1 property that was a DIEP in the preceding year are not retained when rolling forward the client file

• Schedule 8 WORKCHART – Incorrect calculation of the amount on line 217 when acquiring DIEP in a short taxation year

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