Release Notes - CCH iFirm Taxprep T2 2025 v.2.0 (2025.40.40)

Overview – Version 2025 2.0

CCH iFirm Taxprep T2 2025 v.2.0 is designed to process corporate tax returns with taxation years beginning on or after January 1, 2023, and ending on or before May 31, 2026.

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

New forms

The following forms have been added to the program:

Schedule 74, Clean Hydrogen Investment Tax Credit
CO-1029.8.36.EK, Cumulative Limit Allocation Agreement for the Tax Credit Related to Resources
RD-1029.8.CR, Tax Credit for R&D and Pre-Commercialization
RD-1029.8.EN, Agreement Regarding the Expenditure Limit for the Tax Credit for R&D and Pre-Commercialization
TP-1029.8.BE, Foreign Property Return

Online Request to Get a Web Access Code

Fields related to the last notice of assessment or notice of reassessment issued by the CRA have been added. Any online request for a WAC will now use these fields. For more information, consult the note relating to this topic.

Request to Cancel Authorization for a Representative

The cancellation of the authorizations of other representatives or a group’s authorization through the electronic transmission of the form is no longer possible. 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 74, Clean Hydrogen Investment Tax Credit

Schedule 74 is used to calculate the clean hydrogen 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 acquired eligible clean hydrogen property after March 27, 2023, and before January 1, 2035.

In Part 1, Clean hydrogen ITC calculation, you must manually enter all the information in columns 106 to 140, in columns 150, 160, or 165, whichever applies, in column 185 as well as on line 190 to calculate the clean hydrogen ITC for each eligible property. To correctly calculate the specified percentage on lines 170 and 175 of Part 1, you must select the eligible clean hydrogen property asset code from the drop-down list in column 110 and enter a date on column 120.

However, if code 5, Clean hydrogen (Schedule 74), 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 5, Clean hydrogen (Schedule 74), of the Investment tax credit code drop-down list above, specify which NRCan project code (line 099) of Schedule 74 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, Acquisitiondate 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 106, 120 and 130 of a new row in Part 1 of the corresponding copy of Schedule 74.

The regular credit rate for eligible clean hydrogen property acquired after March 27, 2023, and before January 1, 2034, is:

40% if the expected carbon intensity is less than 0.75 for a qualified clean hydrogen project;
25% percent if the expected carbon intensity is 0.75 or greater and less than 2 for a qualified clean hydrogen project; or
15% if the expected carbon intensity is 2 or greater and less than 4 for a qualified clean hydrogen project.

However, for clean ammonia equipment acquired after March 27, 2023, and before January 1, 2034, the regular credit rate is 15% if the expected carbon intensity is less than 4.

You may elect to delay the first day of the compliance period by one year or one more year on lines 103 and 104 above Part 1.

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 lines 170 and 175 of Part 1) for each of the designated work sites in column 185 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 lines 170 and 175 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 clean hydrogen ITC if you are claiming the clean economy ITC on line 155, 170 or 200 in Part 24 of Schedule 31 for a particular asset.

In Part 5, if you wish to make an election under subsection 127.48(23) ITA to sell a project, complete lines 500 to 505 or, to purchase a project, lines 506 to 511.

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

You make a first election to delay the first day of the compliance period by one year on line 103;
You make a second election to delay the first day of the compliance period by one more year on line 104;
A value is calculated on line 195 of Part 1;
A value is calculated on line 340 of Part 3;
You make the election to sell a project on line 500 of Part 5;
You make the election to purchase a project on line 506 of Part 5;
A value is calculated on line 650 of Part 6; or
A value is calculated on line 765 of Part 7.

When rolling forward a client file, the data entered on lines 099, 100, 101 and 105 above Part 1 and the values entered on lines 400, 401, 402 and 403 in Part 4 will be retained. In addition, if, in Part 5, you make the election to sell a project on line 500, the data on this copy will not be retained.

For more details on the clean hydrogen ITC, please consult the help as well as section 127.48 ITA.

Québec

CO-1029.8.36.EK, Cumulative Limit Allocation Agreement for the Tax Credit Related to Resources

This new form is to be completed, for a taxation year that begins after March 25, 2025, by a corporation that is claiming the tax credit related to resources and wishes to agree with the corporations associated with it on how to allocate the $100 million cumulative limit used to calculate this tax credit. The form is completed based on the information entered in the new Québec CO-1029.8.36.EK – Cumulative limit allocation agreement for the tax credit related to resources section added in Schedule 9 WORKCHART. For more information, consult the note relating to Schedule 9 WORKCHART.

RD-1029.8.CR, Tax Credit for R&D and Pre-Commercialization

Following the announcement of the 2025–2026 budget tabled on March 25, 2025, this multiple copy form must be completed by the corporation to claim the tax credit for R&D and pre-commercialization for expenses related to scientific research and experimental development (R&D) or pre-commercialization activities incurred during its taxation year.

A corporation that is a member of a partnership that has incurred such expenses in its fiscal period ending in the corporation's tax year may claim the tax credit as a member of a partnership. In this situation, complete section 4, Percentage of the corporation's interest in the qualifying partnership.

To claim this credit, the taxation year of the corporation or fiscal period of the partnership must begin after March 25, 2025.

At the top of the form, the custom section Identification has been added on screen for you to select the qualified entity that incurred expenses related to R&D activities or expenses related to pre-commercialization activities. In addition, the custom question Does the taxation year of the eligible corporation or the fiscal period of the eligible partnership that incurred expenses related to R&D activities or expenses related to pre-commercialization activities begin after March 25, 2025? has been added. When the type of entity that incurred qualified expenditures is a corporation, the answer to this question will be calculated automatically. However, if the type of entity that incurred qualified expenditures is a corporation that is a member of a partnership or a member of an interposed partnership, you must answer the question manually. This question is used for diagnostic purposes.

In section 2, Total eligible salaries and determined amounts, custom lines have been added for the basic personal amount, which is used in the tables of sections 2.1, Total eligible salaries and amounts determined for R&D activities, and 2.2, Total eligible salaries and amounts determined for pre-commercialization activities. If the calendar year in which the eligible corporation’s taxation year or the eligible partnership’s fiscal period begins in 2026, you must enter the amount manually, as that amount is not known at the time of the release of the program. If the entity that incurred expenses related to R&D activities or expenses related to pre-commercialization activities is a qualified partnership or an interposed partnership, you must select the calendar year that applies.

An exclusion threshold, which corresponds to the higher of $50,000 and the determined amounts, is subtracted from expenses related to R&D activities or expenses related to pre-commercialization activities. The details of these calculations are displayed in sections 6.1, Exclusion threshold, and 6.2, Expenditures related to R&D and pre-commercialization activities.

The basic rate of this refundable tax credit is 20%. An increased tax credit rate of 30% is available, up to a maximum of $1,000,000, with respect to expenses related to R&D activities or expenses related to pre-commercialization activities. If the corporation is claiming this tax credit as a member of an eligible partnership, it is not eligible for the increased rate. Associated corporations must allocate this expense limit among themselves. The allocation is done using Form RD-1029.8.EN. For more information on Form RD-1029.8.EN, consult the note relating to this subject. The calculations regarding the limit on expenditures related to R&D and pre-commercialization activities and eligible expenses giving entitlement to the increased tax credit rate are done respectively in sections 7.1, Limit on expenditures related to R&D and pre-commercialization activities, and 7.2, Eligible expenses giving entitlement to the increased tax credit rate.

The R&D component of this credit is calculated in section 8.1, Tax credit for R&D and pre-commercialization – R&D component. The amount of the credit calculated on line 180 is reported to line Tax credit for R&D and pre-commercialization – R&D component (RD-1029.8.CR), with the credit code 112, in Form Additional Québec Credits. As for the pre-commercialization component, it is calculated in section 8.2, Tax credit for R&D and pre-commercialization – Pre-commercialization component. The amount of the credit calculated on line 200 is reported to line Tax credit for R&D and pre-commercialization – Pre-commercialization component (RD-1029.8.CR), with the credit code 113, in Form Additional Québec Credits.

The data in section 9, Information on non-arm's length subcontractors, can be entered manually or calculated from Part 6, Payments made to non-arm's-length subcontractors, of Form RD-222. Finally, the data in section 10, Information on arm's length subcontractors, can be entered manually or calculated from Part 5, Payments made to arm's-length subcontractors, of Form RD-222. For more information on Form RD-222, consult the note relating to this subject.

RD-1029.8.EN, Agreement Regarding the Expenditure Limit for the Tax Credit for R&D and Pre-Commercialization

This form is to be completed, for a taxation year beginning after March 25, 2025, by a corporation that is claiming the tax credit for R&D and pre-commercialization and that wishes to agree with the corporations associated with it on how to allocate the $1 million expenditure limit used to calculate this tax credit. The form is completed based on the information entered in the new Québec RD-1029.8.EN – Agreement regarding the expenditure limit for the tax credit for R&D and pre-commercialization section of Schedule 9 WORKCHART. For more information, consult the note relating to Schedule 9 WORKCHART.

TP-1079.8.BE, Foreign Property Return

This form must be used for corporations, with the exception of open-end investment companies or investment companies owned by individuals who do not reside in Canada and whose taxation year ends after December 30, 2025. This form is equivalent to Form T1135 for Québec.

The information entered in Form T1135 is reported into Form TP-1079.8.BE, while taking into account the amounts entered on lines Québec of Schedule 6, if applicable.

Note that Form TP-1079.8.BE, unlike the federal Form T1135, is not a separate transmission. The data entered on Form TP-1079.8.BE will be transmitted as part of the CO-17 return. Therefore, it is important that this data be entered prior to transmitting the CO-17 return.

For more information, consult the Help.

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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 ac, Clean hydrogen ITC (Schedule 74), available on screen only, of Part Part I Tax is now calculated from line 340 of Part 3 of Schedule 74.

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

In accordance with Canada Revenue Agency guidelines, when a hybrid mismatch amount is entered on line 250, additional information must be provided in a letter attached to the tax return. In addition, in such a case, the program will display a detailed diagnostic.

Schedule 4, Corporation Loss Continuity and Application*

Schedule 5, Tax Calculation Supplementary – Corporations*

The calculation of the allocation of taxable income in column F of Part 1 has been corrected for federal credit unions when the section of the ITR (Income Tax Regulations) that applies to line 100 is section 404.1. The calculation is now performed using the correct formula, as follows:

(C + (2 x E)/3) (where either G or H is nil, add C and E)

Consequently, the calculation of the allocation of taxable income has also been corrected in Schedule 2 of Alberta as well as in Forms CO-771.R.3, MCT1 and SCT1.

In addition, following the update of the form, the lines below have been added to Part 2:

Line 281, Repayment of Ontario made manufacturing investment tax credit; and
Line 887, Certificate number (related to the Manitoba rental housing construction incentive tax credit).

Lines 550 and 893 have been removed, as the Nova Scotia political contribution tax credit has been eliminated since January 1, 2012, for corporations.

Schedule 7, Aggregate Investment Income and Income Eligible for the Small Business Deduction*

In Part 2, lines 2A to 2L as well as lines 742 and 744, which were used to calculate the adjusted aggregate investment income in the first taxation year beginning after 2018, have been removed. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the amounts entered on the removed lines are not retained.

Schedule 8 WORKCHART, Capital Cost Allowance (CCA) Workchart

Following the addition of Schedule 74, 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 5, Clean hydrogen (Schedule 74), 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 5, Clean hydrogen (Schedule 74), of the Investment tax credit code drop-down list above, specify which NRCan project code (line 099) of Schedule 74 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 180 in Part 1 of Schedule 74 of the class corresponding to that in Schedule 8 WORKCHART. However, if a class is present more than once in Part 1 of Schedule 74, 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 180 in Part 1 of Schedule 74 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 5, Clean hydrogen (Schedule 74), of the Investment tax credit code drop-down list above, specify which NRCan project code (line 099) of Schedule 74 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 74. As a result, the values in the Class, 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 be transferred to columns 106, 120 and 130 of a new row in Part 1 of the corresponding copy of Schedule 74.

Schedule 9 WORKCHART, Related and Associated Corporations Workchart

Section Québec CO-1029.8.36.EK – Cumulative limit allocation agreement for the tax credit related to resources has been added to allow you to complete the new Form CO-1029.8.36.EK. In particular, you must enter in this section, for the filing corporation and the corporations associated with it, the eligible expenses incurred in taxation years that ended in the 60-month period that preceded the beginning of the taxation year covered by the return. This data allows for the calculation of the cumulative limit balance for the tax credit related to resources, which is afterwards allocated in Form CO-1029.8.36.EK. For more information, consult the note relating to Form CO-1029.8.36.EK.

Similarly, section Québec RD-1029.8.EN – Agreement regarding the expenditure limit for the tax credit for R&D and pre-commercialization has been added to enable you to complete the new Form RD-1029.8.EN. You must enter the desired allocation of the expenditure limit for each corporation associated with the filing corporation. The limit available to the filing corporation will then be calculated and used in the calculation of the credit in Form RD-1029.8.CR. For more information, consult the note relating to Form RD-1029.8.EN.

Schedule 12, Resource-Related Deductions*

Schedule 31, Investment Tax Credit – Corporations

Following the addition of Schedule 74, line 140 of Part 24 is now calculated from line 195 of Part 1 in Schedule 74. In addition, line 25C is now calculated from line 650 of Part 6 and from line 765 of Part 7 in Schedule 74.

Schedule 35, Taxable Capital Employed in Canada – Large Insurance Corporations

The form has been updated to remove fields that are only relevant for taxation years beginning before 2023. Thus, lines 121, 201, 221, 223, 343 and 344 as well as former amounts 1B and 1D have been removed from Part 1, Capital. The calculation of the capital for the year on lines 190, 290 and 390 has been adjusted to reflect these removals. Note that former amounts 1C to 1H have been renumbered. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the values entered on the removed lines are not retained.

Schedule 38, Part VI Tax on Capital of Financial Institutions

Changes have been made to the form to remove indications that apply to taxation years beginning before 2023, as these years are no longer supported. In particular, former column 7, Deferred tax debit balance, has been removed from Table 2. It was displayed only when the taxation year began before January 1, 2023. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the value entered in this column will not be retained.

Schedule 75, Clean Technology Investment Tax Credit*

Following the update of the form, the following modifications have been made:

Former line 105 becomes line 106 in Part 1;
Former line 120 becomes line 122 in Part 1;
Former line 205 becomes line 206 in Part 2;
Former line C becomes line 412 in Part 4; and
Former line D becomes line 422 in Part 4.

A drop-down list is now available to select a clean technology property asset code for lines 106 and 206. As a result, when opening a return prepared with a prior version of CCH iFirm Taxprep T2, the values entered on former lines 105 and 205 will not be retained. In addition, the value entered in the Description field of the Information relating to the property – CCA other than classes 10.1, 13 and 14 section of Schedule 8 WORKCHART ADD will no longer be carried forward to line 106. Therefore, a diagnostic will advise you to complete line 106 of Part 1 and line 206 of Part 2, as applicable.

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

To meet CRA requirements, lines 305, 310, 315 and 320 of Part 3 can now contain from one to six numeric characters only. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, any value entered on these lines that is greater than six characters will not be retained.

Schedule 130, Excessive Interest and Financing Expenses Limitation

The question Would you like to make Schedule 130 applicable? has been added above Part 1A to allow you to make the schedule applicable when the corporation is not exempt from filing it according to the information on the page Excessive interest and financing expenses limitation rules of the Canada Revenue Agency’s (CRA) website.

In addition, it is no longer possible to enter a negative value in amount A of Part 1A. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if a negative value was entered in this field, it will not be retained.

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

Online Request to Get a Web Access Code

Fields have been added to indicate the date of the last notice of assessment (NOA) or notice of reassessment (NOR) issued by the CRA to the corporation as well as the Part I tax, the total federal tax and the net balance (refund or balance owing) appearing on that notice.

Any online request for a WAC must now include the date of the last NOA or NOR issued by the CRA to the corporation and at least one of three amounts mentioned above. All information entered must match the information appearing on the last NOA or NOR issued. Otherwise, the online request for the WAC will be rejected.

Request to Cancel Authorization for a Representative

In Part Cancellation information, former options A. Cancel all authorizations for all program accounts and C. Cancel all authorizations, only for the following program account, as well as the fields Program identifier and Reference number related to option C, have been removed because it is no longer possible to cancel authorizations of other representatives. Former options B and D have been renumbered as options A and B.

The field Group ID has also been removed, as it is no longer possible to cancel a group’s authorization via the electronic transmission of the form.

Additionally, when option A or B is selected, it is now mandatory to specify either a Rep ID or a business number (BN). The Rep ID or business number entered must now be associated, in the CRA’s records, with the EFILE number of the representative submitting the cancellation request.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, any data entered in the removed options and fields will not be retained.

Client Letter Worksheet

Boxes CO-1029.8.36.EK, RD-1029.8.EN and TP-1079.8.BE have been added to sections CO-17 – Paper format and CO-17 – Internet filing. These boxes are used to determine the paragraph(s) to include in the letter Filing Instructions. Please note that these boxes are automatically selected in the relevant section when the form in question is applicable.

Due to the harmonization of the initial deadline to submit Form Statement A for the AgriStability and AgriInvest programs without a late filing penalty for the harmonized provinces, the line AgriStability filing deadline for MB, NB, NS, NL, YK and NT has been removed from section AGRI/HAGRI – AgriStability and AgriInvest programs. In addition, the initial deadline has changed for the AgriStability and AgriInvest program participants of Alberta, Saskatchewan and Prince Edward Island. For more information, consult the note relating to this subject.

Finally, in section Client letter information from preparer profile, the two checkboxes previously used to select the mailing address of the CO-17 return to Revenu Québec have been replaced by a new checkbox to be used to select the following mailing address:

Revenu Québec

C. P. 7300, succursale Place-Desjardins

Montréal (Québec) H5B 0A8

Inducement, Inducement Calculation Workchart

The line Tax credit relating to major digital transformation projects has been removed from Part Tax credits whose amount should be added to income – Québec.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if an amount had been entered on the removed credit line, it will not be retained.

In addition, the following lines have been added to Part Tax credits whose amount should be added to income – Québec:

Portion of the tax credit for R&D and pre-commercialization – R&D component that is not included on line 429a of Form T661
Tax credit for R&D and pre-commercialization – Pre-commercialization component

T661, Scientific Research and Experimental Development (SR&ED) Expenditures Claim

Following the implementation of Form RD-1029.8.CR, the calculation on lines 429a and 513a, Québec tax credit for R&D, has been adjusted to take into consideration the tax credit for R&D and pre-commercialization – R&D component. If a credit is calculated on line 180 of Form RD-1029.8.CR and a portion of the expenses is related to capital expenditures, verify if adjustments are required on lines 429a and 513a, as capital expenditures are not allowed in Form T661. For more information on Form RD-1029.8.CR, consult the note relating to this subject.

In addition, the year’s maximum pensionable earnings amount for purposes of the Canada pension plan has been updated for the 2026 calendar year (and is now $74,600). This amount is used to determine the specified employees’ salary or wages in Part 5 when the proxy method is selected to calculate the SR&ED expenditures.

AgriStability and AgriInvest Programs – Ontario*

In the new participant form, the following modifications have been made:

The line Social insurance number (sole proprietors) has been removed from Section A: Customer information;
The sections Corporate structure (corporations only) and Partner information (partnerships only) have been moved below the section Main farm location. In addition, the section Notes has been moved below Section B: Farming activities;
The column Social insurance number has been removed from the section Partner information (partnerships only);
The lines Primary commodity sold in 2024, No. of productive units sold in 2024 and Unit type have been removed from Section B: Farming activities;
The new Section C: 2026 Intended productive units has been added; and
Former Section C: Agreement and signature and Section D: Submit completed form have been renamed Sections D and E.

AgriStability and AgriInvest Programs – Harmonized Provinces* and British Columbia*

Line Cellphone number has been added to subsections Participant identification and Contact person information.

As of the 2025 program year, the initial deadline to submit Form Statement A without a late filing penalty is June 30, 2026, for the AgriInvest program participants of British Columbia, Manitoba, Nova Scotia, New Brunswick, Newfoundland and Labrador, Northwest Territories and Yukon. In addition, the date of June 30, 2026, also applies to the AgriStability program participants of British Columbia.

AgriStability and AgriInvest Programs – Alberta*

As of the 2025 program year, the initial deadline to submit Form Statement A and the supplemental form without a late filing penalty is June 30, 2026.

AgriStability and AgriInvest Programs – Saskatchewan*

The tables in sections 10 to 12 have been modified. From now on, more than 12 entries can be added to each of these sections. In addition, the data is now displayed in a single column. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the data in the second column is retained and is displayed in entries 7 and subsequent.

As of the 2025 program year, the initial deadline to submit Form Statement A without a late filing penalty is June 30, 2026.

AgriStability and AgriInvest Programs – Prince Edward Island*

As of the 2025 program year, the initial deadline to submit Form Statement A and the supplemental form without a late filing penalty is June 30, 2026.

AgriStability and AgriInvest Additional Information and Adjustment Request*

Ontario

Schedule 570, Ontario Regional Opportunities Investment Tax Credit*

Line numbers 108 and 208 have been added to the column Description of eligible property in the table of Parts 1 and 2 respectively in order to electronically transmit the data entered in these fields.

Québec

Mailing address change

The CO-17 and CO-17.SP returns, with or without a payment, must be sent to the following address:

Revenu Québec

C. P. 7300, succursale Place-Desjardins

Montréal (Québec) H5B 0A8

If you must send a payment that is not enclosed with the return, send it to the following address with the remittance slip COZ-1027.P or COZ-1027.S:

Revenu Québec

C.P. 8025, succursale Place-Desjardins

Montréal (Québec) H5B 0A8

Note: The addresses are the same, without regard to the address or the postal code of the corporation.

CO-17, Corporation Income Tax Return*

Line 19c, If the taxation year ends after December 30, 2025, did the corporation hold designated foreign property with a total cost of more than $100,000 at any time during the year (form TP-1079.8.BE)? has been added to section 2, Information about the corporation. In addition, line 21, Start date of production, if the corporation is a mining corporation that has reached the production stage, has been removed.

Two lines have been added to subsection Deductions in the calculation of income tax of section 4.1, Income tax payable.

Note that the special tax code 103 R&D and pre-commercialization can now be selected on lines 425ai and 425bi.

The name of the authorized representative has been removed from section 6, Certification, and the field Position of authorized representative has been added.

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

In accordance with section 158.21 of the Taxation Act, when a hybrid mismatch amount is added to the income according to subsection 18.4(4) or subsection 12.7(3) ITA, the information required under subsection 18.4(21) ITA must also be filed with the Québec income tax return. According to the page Hybrid mismatch rules of the Government of Canada, a letter containing certain information must be filed with the federal income tax return. A letter containing the same information must therefore be filed with the Québec income tax return. A diagnostic will notify you when this letter is required.

CO-17S.4, Corporation Loss Continuity and Application (QC Sch. 4)

The title of Form Capital Losses, Listed Personal Property Losses and Restricted Interest and Financing Expenses (RIFE) (QC Sch. 4) has been modified to Corporation Loss Continuity and Application (QC Sch. 4).

A section has been added to calculate the amount of limited partnership losses you can deduct.

When rolling forward a file in which the amount on line Current year limited partnership losses closing balance to be carried forward to future years (column 20) differs from the amount on line 680 of Schedule 4, this amount will be carried to line Partnership losses at the end of the previous tax year and amounts transferred on an amalgamation or on the wind-up of a subsidiary (column 10) through an override.

In addition, a correction has been made to the calculation of the field Subtotal in section Restricted interest and financing expenses (RIFE). The amount entered in the field Adjustments is now subtracted rather than added in the calculation of the field Subtotal. When rolling forward a client file prepared with a prior version of CCH iFirm Taxprep T2, verify the accuracy of the amount rolled forward in the field Opening balance of this section.

CO-130.A, Capital Cost Allowance (QC Sch. 8)*

CO-502, Election in Respect of a Dividend Paid Out of a Capital Dividend Account*

As per Revenu Québec requirements, the 2D bar code will not be generated when some minimal validations are not met. Diagnostics have been updated to advise the preparer that the bar code will not be generated when printing the form as long as the adjustments are not made. Please note that the absence of a 2D bar code may cause processing delays from Revenu Québec.

Data processing when opening a return prepared with a prior version of CCH iFirm Taxprep T2:

Line 01b (Identification number): The first 10 characters are retained.
Line 02 (Name of corporation): If the name exceeds the limit, the first 60 characters are retained.
Line 03 (Address of the head office or principal place of business): The first 80 characters are retained. If a non-Canadian postal code was entered on line 03a, it will be added to the address on line 03, and line 03a will be left blank.
Line 04 (Contact person’s name): The first 60 characters are retained.
Lines 04a (Area code Phone) and 45b (Area code Phone): Phone numbers with more than 10 digits are not retained.
Line 04b (Contact person’s address): The first 80 characters are retained. If a non-Canadian postal code was entered on line 04c, it will be added to the address on line 04b, and line 04c will be left blank.
Part 5 (Name of authorized person): The first 50 characters are retained.

CO-1029.8.33.13, Tax Credit for the Reporting of Tips

The various applicable rates for 2026 have been integrated into the form.

CO-1029.8.33.CS, Tax Credit for the Retention of Persons With a Severely Limited Capacity for Employment

The box for the year 2021 has been removed from line 6 and a box for the year 2026 has been added.

CO-1029.8.33.TE, Tax Credit to Foster the Retention of Experienced Workers

The box for the year 2021 has been removed from line 6.

CO-1029.8.36.5, Tax Credit for a Design Activity Carried Out by an Outside Consultant*

CO-1029.8.36.7, Tax Credit for an In-House Design Activity*

CO-1029.8.36.DA, Tax Credit for the Development of E-Business*;

CO-1029.8.36.EM, Tax Credit Relating to Resources*

The form has been updated to incorporate measure 1.3 from the document Additional Information on Tax Measures in the Government of Québec’s 2025–2026 budget. As such, expenses incurred after March 25, 2025, by a corporation as part of a joint venture are now eligible. This type of entity has been added to custom Part Identification.

Parts 2 to 6 must be completed on separate copies of the form when a corporation is claiming the tax credit both as a corporation and as a member of a qualified partnership or as part of a joint venture.

Part and sections 3, 4.2, and 5.2 have been added to enter data related respectively to exploration expenses, natural resources expenses and Canadian renewable and conservation expenses incurred after March 25, 2025. Existing Part 2 as well as sections 4.1 and 5.1 (formerly Parts 3 and 4) remain unchanged and are now used to enter data related to expenses incurred before March 26, 2025.

Parts 7 to 13 are completed only once and are printed on the first copy of the form only.

New Part 7 must be completed when the corporation’s taxation year (or the partnership’s fiscal period in the case of a corporation that is a member of an eligible partnership that has incurred the expenses) begins after March 25, 2025, to determine eligible expenses that respect the cumulative $100 million limit. Once this limit has been reached, the corporation will not be able to benefit from the tax credit. On screen, the table in section 7.1 has been split into three distinct sections: 7.1A, Expenses incurred by the corporation, 7.1B, Expenses incurred by the partnership, and 7.1C, Expenses incurred by the parties to the joint venture. Section 7.1B must be completed for each distinct qualified partnership identified on line 51 of Part 6 in the copies of the form, while section 7.1C must be completed for each copy of the form where the qualified entity selected in Part Identification is a joint venture.

New Part 8 is used to compile and allocate eligible expenses incurred after March 25, 2025, that qualify for the tax credit. Note that eligible expenses incurred after March 25, 2025, in a taxation year (or fiscal period in the case of a partnership) that begins before March 26, 2025, are eligible for the new tax credit rates depending on the type of eligible expenses.

Parts 9 to 12 are used to calculate the tax credit based on the rates applicable to the different types of eligible expenses and the period in which the expenses were incurred. New Part 10 is used to calculate the tax credit for exploration expenses incurred after March 25, 2025. In Part 13, line 91 corresponds to the total of the tax credit amounts calculated in Parts 9 to 12.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if multiple copies of the form are completed and one of the amounts on the lines listed below in one of the copies is entered as an overridden amount, the total of the amounts on these lines is retained as an overridden value on the corresponding line:

In Part 9: the amounts from lines 71, 74a, 75a, 75c, 76, 79, 80a and 80c
In Part 11: the amounts from lines 81 and 84a
In Part 12: the amounts from lines 86 and 89a
In Part 13: the amounts from line 91

Finally, the total of the amounts entered on lines 74b, 75d, 79b, 80d, 84b and 89b is also retained on the corresponding line as an inputted amount.

CO-1029.8.36.PM, Tax Credit for Corporations Specialized in the Production of Multimedia Titles; and

CO-1029.8.36.TM, Tax Credit for Multimedia Titles

For each of these three forms, a box for the year 2026 has been added to the Exclusion threshold subsection. Since the basic personal amount for 2026 was unknown when the version was released, enter the amount in the cell provided for that purpose, as required.

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 section 2, Information about the specified property:

Following the municipal merger, code 14080 Saint-Onésime-d’Ixworth, code 14085 La Pocatière and code 14090 Sainte-Anne-de-la-Pocatière have been replaced by code 14082 La Pocatière.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if codes 14080 Saint-Onésime-d’Ixworth, 14085 La Pocatière or 14090 Sainte-Anne-de-la-Pocatière had been entered, they will be replaced by code 14082 La Pocatière.

COZ-1027.P, Payment of Income Tax, Capital Tax, Registration Fee or Compensation Tax of a Corporation*

The field Balance due has been added to the top section of the form.

In addition, the three address lines that are used to indicate Revenu Québec’s address are now protected. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if one of the lines was modified using an override, that value will not be retained.

QC L265-266, Deductions from Taxable Income

Code 21, Deduction relating to restricted interest and financing expenses, has been added to the form.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the amount entered in the field with code 99 is not retained if the amount is identical to the amount calculated in the field with code 21. Otherwise, the amount is retained in the field with code 99.

QC L440P-Y, Additional Québec Credits;

Q1 L70A, Taxable Tax Credits; and

Q1 L140A, Non-Taxable Tax Credits

The following credit code has been removed from the three forms:

102, Tax credit relating to major digital transformation projects (CO-1029.8.36.PT)

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if there was an amount on one of the lines for this code, it will not be retained.

In addition, the following credit codes have been added to the three forms:

112, Tax credit for R&D and pre-commercialization – R&D component
113, Tax credit for R&D and pre-commercialization – Pre-commercialization component

RD-222, Deduction Respecting Scientific Research and Experimental Development Expenditures

Following the implementation of Form RD-1029.8.CR, a custom check box has been added to enable the transfer of information in Part 5, Payments made to arm’s-length subcontractors, of Form RD-222, with regard to a given subcontractor, to Part 10, Information on arm's length subcontractors, of Form RD-1029.8.CR, when the information required in both forms pertain to the same subcontractor. A drop-down menu allowing you to select the copy of Form RD-1029.8.CR to link in order to transfer data has also been added. After having selected this check box, fill lines Identification number (QST) and Total amount of consideration to complete the information required in Form RD-1029.8.CR with regard to this subcontractor. The status of this new check box and, where applicable, the election with regard to the destination form will be retained when rolling forward the client file. The same adjustments have been made to Part 6, Payments made to non-arm's-length subcontractors, above line 105.1 to report information about the subcontractor to section 9, Information on non-arm's length subcontractors, of Form RD-1029.8.CR. For more information on Form RD-1029.8.CR, consult the note relating to this subject.

RD-1029.7, Tax Credit for Salaries and Wages (R&D)*

The custom question Does the taxation year of the corporation that incurred qualified expenditures or the fiscal period of the qualified partnership that incurred qualified expenditures begin before March 26, 2025? has been added to the Identification section, on screen only. When the type of entity that incurred qualified expenditures is a corporation, the answer to this question will be calculated automatically. In contrast, if the type of entity that incurred qualified expenditures is a corporation that is a member of a partnership or a member of an interposed partnership, you must answer the question manually.

The question is used for diagnostic purposes. If the answer is No and qualified expenditures are entered in the form, a diagnostic will advise you to verify if the taxpayer can claim the R&D and pre-commercialization tax credit.

RD-1029.8.6, Tax Credit for University Research or Research Carried Out by a Public Research Centre or a Research Consortium*

Finally, the custom question Does the taxation year of the corporation that incurred qualified expenditures or the fiscal period of the qualified partnership that incurred qualified expenditures start after March 10, 2020, and was the research and development work carried out after that date? has been removed from the Identification section.

RD-1029.8.9.03, Tax Credit for Fees and Dues Paid to a Research Consortium*

Following the announcement of the 2025–2026 budget tabled on March 25, 2025, for a taxpayer to claim this tax credit, the corporation’s taxation year or the partnership’s fiscal period must begin before March 26, 2025. If the corporation’s taxation year or the partnership’s fiscal period begins after March 25, 2025, verify if the taxpayer can claim the R&D and pre-commercialization tax credit. However, the balance of the cumulative fees or dues paid by the corporation or the partnership at the end of the taxation year or fiscal period, as applicable, that ends after March 25, 2025, may be eligible for the tax credit for a taxation year that ends on or before December 31, 2029.

The question is used for diagnostic purposes. If the answer is No and qualified expenditures are entered for the taxation year concerned, a diagnostic will advise you to verify if the taxpayer can claim the R&D and pre-commercialization tax credit.

RD-1029.8.16.1, Tax Credit for Private Partnership Pre-Competitive Research*

Following the announcement of the 2025–2026 budget tabled on March 25 2025, for a taxpayer to claim this tax credit, the corporation’s taxation year or the Following the announcement of the 2025–2026 budget tabled on March 25, 2025, for a taxpayer to claim this tax credit, the corporation’s taxation year or the partnership’s fiscal period must begin before March 26, 2025. If the corporation’s taxation year or the partnership’s fiscal period begins after March 25, 2025, verify if the taxpayer can claim the R&D and pre-commercialization tax credit.

TP-21.4.39, Cryptoasset Return*

In Part 1, lines 26 and 27 relating to the name of the contact person for governmental communications have been removed.

Former Parts 4, 5 and 6 have been regrouped into a new Part 4. Cryptoasset income or loss is now displayed as a table. The fields used to indicate the total number of units have been removed.

Part Rental income (or losses) from cryptoassets has been removed.

Two types of cryptossets have been added: Private cryptocurrency and Stablecoins. These types have also been integrated into the cryptoasset options of Schedule 6.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, any value entered in a field that has been removed will not be retained.

TP-1086.R.23.12, Costs Incurred for Work on a Immovable*

British Colombia

Schedule 422 (T1196), British Columbia Film and Television Tax Credit*

The basic tax credit rate (calculated in Part 8) is increasing from 35% to 40% for productions that start after December 31, 2024. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the overridden value entered on line 620 is retained on that line.

Animated productions that start key animation after December 31, 2024, are eligible for the regional tax credit (calculated in Part 10) and the distant location regional tax credit (calculated in Part 11) when certain conditions are met. For more details on these conditions, please refer to sections 81.1 and 81.11 of the British Columbia Income Tax Act.

Schedule 423 (T1197), British Columbia Production Services Tax Credit*

The production services tax credit rate (calculated in Part 6) is increasing from 28% to 36% for productions that start principal photography after December 31, 2024. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the overridden value entered on line 800 is retained on that line.

Animated productions that start key animation after December 31, 2024, are eligible for the regional production services tax credit (calculated in Part 7) and the distant location production services tax credit (calculated in Part 8) when certain conditions are met. For more details on these conditions, please refer to sections 82.2 and 82.21 of the British Columbia Income Tax Act.

The new Part 10 enables the calculation of the major production tax credit. The credit rate is 2% and the credit is applicable to eligible companies for major productions that start principal photography after December 31, 2024. When the total accredited BC major production expenditure for the production is greater than $200,000,000, the result on line 846 will correspond to the amount on line 525 added to the amount on line 610. The former Part 10 is now Part 11. A line has been added to Part 11 to take into account the major production tax credit.

Schedule 429, British Columbia Interactive Digital Media Tax Credit*

Following British Columbia's Bill 5, which received Royal Assent on May 29, 2025, several lines have been added to Parts 4 and 5 of the schedule to reflect the increase of the tax credit rate for eligible salary and wages from 17.5% to 25% effective September 1, 2025.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the overridden value entered in amount A is retained in amount C.

FIN 146, Authorization or Cancellation of a Representative*

FIN 542P, Logging Tax Return of Income for Processors*

FIN 542S, Logging Tax Return of Income*

Alberta

AT1, Alberta Corporate Income Tax Return*

Line 103, Telephone Number, has been added to Part Certification. The telephone number on this line corresponds to the one found on line 956 in Part Certification of Form Corporate Identification and Other Information. Also, line 105, Authorized Email, has been added to Part Certification. The authorized email on this line corresponds to the one found on line Email address in Part Certification of Form Identification.

AB Authorization, Alberta Consent Form*

The field Fax Number has been removed from Part 6, Certification. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the number will not be retained.

Yukon

Schedule 444, Yukon Business Carbon Price Rebate*

Nova Scotia

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

Lines 1A, 1B and 1C have been added to Part 1, Nova Scotia corporate tax reduction for new small businesses. The amounts from lines 400, 405 and 428 of the T2 return are reported to lines 1A, 1B and 1C respectively. These lines are used to calculate amount 1D (formerly amount A). When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the value entered in former amount A using an override is not retained.

Schedule 346, Nova Scotia Corporation Tax Calculation*

Prince Edward Island

Schedule 322, Prince Edward Island Corporation Tax Calculation*

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