Release Notes - CCH iFirm Taxprep T2 2026 v.1.0 (2026.10.41)

Overview – Version 2026 1.0

CCH iFirm Taxprep T2 2026 v.1.0 is designed to process corporate tax returns with taxation years beginning on or after January 1, 2024, and ending on or before October 31, 2026.

 

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

Schedule 8 WORKCHART, Capital Cost Allowance (CCA) Workchart

The changes regarding reaccelerated investment incentive property announced in Bill C-15 have been incorporated into this version. In addition, the acquisition cost limit for passenger vehicles of Class 10.1 ($39,000) has been adjusted for acquisitions made after December 31, 2025. For more information, consult the note relating to this topic.

Capital expenditures for scientific research and experimental development (SR&ED)

Adjustments regarding SR&ED capital expenditures for depreciable property acquired after December 15, 2024, have been incorporated into this version. For more information, consult the note relating to this topic.

In addition, Schedule 31 has been modified to reflect adjustments related to SR&ED capital expenditures and adjustments related to the calculation of the SR&ED expenditure limit. For more information, consult the note relating to this topic.

New Form CO-1029.8.36.55, Tax Credit for the Construction or the Conversion of a Vessel

Form CO-1029.8.36.55 has been added to the program and must be used by a corporation to claim the tax credit for the construction or the conversion of a vessel. 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.

Top

New Forms

Québec

CO-1029.8.36.55, Tax Credit for the Construction or for the Conversion of a Vessel

This form must be completed for any corporation that wishes to claim the tax credit for the construction of a vessel or the tax credit for the conversion of a vessel, in respect of qualified expenditures incurred as part of a construction or conversion project. If box 06 has been selected, the amount of the credit calculated on line 51 will be carried over to line Tax credit for the construction of a vessel (CO-1029.8.36.55), with code 014, of Form Additional Québec Credits. Alternatively, if box 07 has been selected, the amount of the credit calculated on line 51 will be carried over to line Tax credit for the conversion of a vessel (CO-1029.8.36.55), with code 015, of Form Additional Québec Credits.

A separate copy of the form must be completed for each eligible vessel for which a tax credit is claimed. The credit amount of each copy will then be added together before being carried over to the appropriate line of Form Additional Québec Credits.

Top

Deleted Forms

Federal

• Schedule 65, Air Quality Improvement Tax Credit

Québec

• CO-130.AD, Capital Cost Allowance for Designated Immediate Expensing Property

Top

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

Corporate Identification and Other Information

The answer to the question Is the corporation making an application under the Revenu Québec Voluntary Disclosure Program for this tax return (Form LM-15-V)? no longer renders the return ineligible for electronic transmission to Revenu Québec, as electronic filing is now permitted when the operation (or series of operations) to be disclosed begins after March 19, 2026.

Schedule 200, T2 Corporate Income Tax Return*

Lines 278 and 799 have been removed from the return following the removal of Schedule 65.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, any value entered on the removed lines will not be retained.

Online Request to Get a Web Access Code

The form has been updated to align with current CRA requirements. Line The net balance (refund or balance owing) has been removed. To request a WAC online using the form, you must now provide the issue date of the most recent notice of assessment (NOA) or notice of reassessment (NOR) and either the Part I tax or the total federal tax.

Schedule 3, Dividends Received, Taxable Dividends Paid, and Part IV Tax Calculation*

In Part 1, column 235 has been added to enter taxable dividends deductible from taxable income under paragraph 113(1)(c) ITA.

Custom fields are already available under the table of Part 1 to enter taxable dividends deductible from taxable income under paragraph 113(1)(c) ITA in order to correctly calculate the amount on line 320 of the T2 return. We have kept these custom fields and they are now calculated based on column 235. Consequently, we have made corrections to the descriptions of these custom fields and to the text of note 6, which is available on screen only. In addition, the calculation for line 1A has been modified and this line is now equal to the sum of the custom fields. Line 1B now corresponds to the total of the amounts in column 240.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the amounts entered as overridden values on lines 1A and 1B are not retained. However, the amounts that were entered in the custom fields will be retained as overridden values. If this is the case, you must complete column 235 and remove the overridden amounts from the custom fields.

In Part 2, line 100 has been added. If you answer Yes to this question, it means that the corporation is exempt from Part IV tax under paragraph 186.1(b)(ii) or (vii) ITA. In that case, Part 2 does not need to be completed, and the fields will not be calculated. However, if you answer No, the fields in Part 2 will be calculated.

Schedule 5, Tax Calculation Supplementary – Corporations*

The schedule has been updated to reflect legislative changes affecting Ontario and British Columbia tax credits.

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

• Line 421, Non-refundable Ontario Made Manufacturing Investment Tax Credit (from Schedule 572) (related to the new non refundable portion of the Ontario made manufacturing investment tax credit introduced in 2025 for corporations other than CCPCs); and

• Line 476, Ontario Shortline Railway Investment Tax Credit (related to the new refundable Ontario tax credit, the Ontario Shortline Railway Investment Tax Credit, announced in the 2025 Ontario budget).

Due to the addition of parts to Schedule 572, a new data transfer to line 281 is now supported.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if an amount is entered on line 281 of Schedule 5, it will be retained as an overridden amount. You will then have to complete Schedule 572 and delete the overridden amount on line 281 of Schedule 5 so that the tax credit calculated in Schedule 572 is updated in Schedule 5.

Schedule 8, Capital Cost Allowance (CCA)*

Part 1, Agreement between associated persons or partnerships (EPOPs), as well as columns 4 (line 232), 9 (line 234), 11 (line 236),12 (line 238) relating to the calculation of immediate expensing and column 13 in Part 2 have all been removed. In addition, former column 14 (line 225) has been moved to column 4.

The following columns have been added to reflect the modified calculation for accelerated investment incentive property (AIIP) and the addition of the calculation for reaccelerated investment incentive property (RIIP):

• Column 5, Cost of acquisitions from column 3 that are RIIP or ZEV acquired after 2024 (line 226);

• Column 13, Proceeds of disposition from column 11 available to reduce additions of RIIP and ZEV acquired after 2024;

• Column 14, Net capital cost additions of RIIP and ZEV acquired after 2024;

• Column 16, UCC adjustment for RIIP and ZEV acquired after 2024.

All remaining columns have been renumbered accordingly. RIIP is property acquired after 2024 and available for use before 2034 that meets the same criteria as AIIP. For more details, refer to the help topic Schedule 8, Capital Cost Allowance (CCA).

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, data entered on removed lines and fields is not retained.

Schedule 8 WORKCHART, Capital Cost Allowance (CCA) Workchart

The limit for capital cost allowance (CCA) increases to $39,000 (before taxes) for Class 10.1 passenger vehicles acquired in the taxation year after December 31, 2025.

To align with the changes made to Schedule 8, the following modifications have been made:

• Lines 232, 234, 236 and 238 as well as other immediate expensing (IE) calculation fields have been removed.

• The following modifications have been made to AIIP-related calculations:

• The line Cost of additions included on line 203 that are AIIP or ZEV – Available for use before 2024 has been removed.

• Lines Classes 44, 46 and 50 only – Acquired before April 16, 2024 and – Acquired after April 15, 2024, and before 2025 have been added to apply the correct adjustment factor based on the acquisition date. These lines display only when the selected class number is 44, 46 or 50.

• Line 225 now represents the total of the two lines related to the cost of acquisition of AIIP and ZEV acquired before 2025.

• For Class 14, the question Is one of the properties acquired during the year a property that qualifies for the accelerated depreciation special rules in Québec? has been removed.

• The following lines have been added to account for calculations related to RIIP and ZEV acquired after 2024:

• Line 226, Cost of acquisitions included at line 203 that are RIIP and ZEV acquired after 2024;

• Proceeds from disposition available to reduce the UCC for RIIP and ZEV acquired after 2024;

• Net capital cost for additions of RIIP and ZEV acquired after 2024;

• UCC adjustment for RIIP and ZEV acquired after 2024;

• For Class 10.1, the question Is the property a RIIP? has been added.

Since the governments of Québec and Alberta have announced that they align with federal measures, the calculations in the Québec and Alberta columns have also been modified accordingly.

Please note that in the Québec column, the line Capital cost included on line 203 of property qualified for the accelerated depreciation special rules in Québec – Available for use before 2024 has been removed.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, data entered on removed lines and fields is not retained.

Moreover, following the addition of code 7, Clean electricity to the Investment tax credit code drop-down list in Schedule 8 WORKCHART ADD, 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 the new credit code is selected in the Investment tax credit code drop-down list in the copy of Schedule 8 WORKCHART ADD will be equal to the amount:

• of the clean electricity ITC entered on line 185 in Part 23 of Schedule 31.

Schedule 8, Acquisitions and Dispositions Workchart

To reflect the changes made to Schedule 8 WORKCHART, the following changes have been made:

• The question Is the property a designated immediate expense property (DIEP)? has been removed;

• The question Is the property a RIIP or a ZEV acquired after 2024? has been added;

• The question Is the property a RIIP that would have been included in Class 53 if acquired before 2026? has been added. This question displays only for property in CCA class 43.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, data entered on removed lines is not retained.

In addition, the following code has been added to the Investment tax credit code drop-down list following the addition of the clean electricity to Part 23 of Schedule 31:

• Code 7 – Clean electricity

Schedule 9 WORKCHART, Related and Associated Corporations Workchart

Section Schedule 65 – Air quality improvement tax has been removed following the removal of Schedule 65.

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

Schedule 12, Resource-Related Deductions*

In Part 5, former lines AA through EE as well as line Current-year claim – CDE (amount E × 30%) have been removed. Lines 372 and AA through CC have been added to calculate development expenses in Canada at the reaccelerated rate of 15%.

In Part 6, former lines FF through JJ as well as line Current-year claim – COGPE (amount J × 10%) have been removed. Lines 453 and DD through FF have been added to calculate expenses related to Canadian oil and gas property at the reaccelerated rate of 5%.

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 16, Patronage Dividend Deduction*

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

The line Total labour requirements addition to tax (line 580 of the T2 return) has been added to Parts 7 and 8 to reflect changes related to the integration of labour requirements into the calculation of Part I tax otherwise payable.

Schedule 31, Investment Tax Credit – Corporations*

The following changes have been made for taxation years starting (TYS) after December 15, 2024:

• SR&ED capital expenditures have been reinstated in the calculation of the investment tax credit (ITC) on SR&ED expenditures incurred after December 15, 2024;

• Eligible Canadian public corporations (ECPCs) may claim an ITC at the enhanced rate of 35% on qualified SR&ED expenditures, up to the expenditure limit. Any qualified expenditures in excess of the expenditure limit may claim an ITC at the basic rate of 15%;

• The expenditure limit for ECPCs and CCPCs is $6 million;

• For CCPCs, the taxable capital phase-out thresholds used to determine the expenditure limit are $15 million and $75 million; and

• For ECPCs and CCPCs that make the election under 127(10.31) of the ITA or 127(10.32) of the ITA, the expenditure limit decreases when the average revenue over the previous three fiscal years exceeds $15 million and becomes nil starting at $75 million.

In Part 8, line 360 has been added to report SR&ED capital expenditures incurred after December 15, 2024.

In Part 9, the new line 382 is used to indicate whether the corporation is an ECPC and the new line 383 is used to indicate whether the corporation is a CCPC that makes the election under section 127(10.31) of the ITA or section 127(10.32) of the ITA. Lines 385 and 398 must not be completed if the answer to either line 382 or 383 is Yes and the new line 399 is used to enter the average annual revenue from the three fiscal years immediately preceding and ending before this taxation year, minus $15 million.

For a CCPC filing an election under 127(10.32) of the ITA, enter the total of each member’s three-year average annual revenue, minus $15 million (with the required partnership, trust or single-economic-entity adjustments) for the three fiscal year periods ending in the last calendar year that ended before the end of the taxation year. If you are an ECPC that is a member of a consolidated group, enter the average, over the period of three fiscal years immediately preceding and ending in the last calendar year that ended before the end of the taxation year, of the annual revenue of the consolidated group, minus $15 million. If this amount is nil or negative, enter 0. If this amount is over $60 million, enter $60 million.

Former Part 10 is now Part 10A and is used to calculate the SR&ED expenditure limit with a TYS before December 16, 2024. Part 10B has been added and is used to calculate the SR&ED expenditure limit with a TYS after December 15, 2024.

Part 11 has been modified to take into account the capital expenditures and to calculate the ITC for current-year SR&ED of an ECPC or a CCPC that makes the election under section 127(10.31) or 127(10.32) of the ITA.

In addition, Part 15 has been modified for CCPCs with a TYS after December 15, 2024.

For CCPCs that are associated, Schedule 49 is still used to allocate the expenditure limit. Currently, for ECPCs under section 127(10.62) of the ITA and CCPCs that make the election under section 127(10.32) of the ITA, there is no prescribed form for allocating the expenditure limit. Therefore, if the corporation is an ECPC or a CCPC that makes the election under 127(10.32) of the ITA, you must answer Yes to one of lines 382 or 383 and complete line 399 in Part 9.

In Part 23, line 185 has been added to report the amount of the clean electricity ITC.

In Part 24, line 24E has been added to report the amount of recaptured or recovered clean electricity ITC.

Schedule 49, Agreement Among Associated Canadian-Controlled Private Corporations to Allocate the Expenditure Limit*

Line 425, lines 1 through 3 in the Calculation of expenditure limit custom section and all information related to taxation years ending before March 19, 2019, have been removed from this schedule because they no longer apply. Therefore, line 495 has become Amount A.

In addition, the following changes have been made for taxation years beginning (TYS) after December 15, 2024:

• The expenditure limit is $6 million; and

• The taxable capital phase-out thresholds for determining the expenditure limit are $15 million and $75 million.

Schedule 75, Clean Technology Investment Tax Credit*

In Part 1, line 105 has been added to enter the description of the clean technology property.

In Part 2, line 212 has been added to enter the available-for-use date of the clean technology property.

Part 5, Amounts allocated from partnerships, has been added to the form. Lines 160, 240 and 425 are now calculated based on the information provided in this part.When opening a return prepared with a prior version of CCH iFirm Taxprep T2, amounts entered on lines 160, 240 and/or 425 are retained as overridden values on the corresponding lines.

Schedule 76, Clean Technology Manufacturing Investment Tax Credit*

In Part 1, line 106 has been added to enter the CTM use asset code, and line 107, CTM use description, has been removed.

In Part 2, line 206 has been added to enter the CTM use asset code.

Part 3, Amounts allocated from partnerships, has been added to the form. Lines 150 and 240 are now calculated based on the information provided in this part. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, amounts entered on lines 150 and/or 240 are retained as overridden values on the corresponding lines.

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

The Government of Canada has extended the availability of the full credit rates for five additional years. The rates will drop by half for expenditures incurred after 2035 instead of after 2031, as initially announced. Therefore, the calculation of the specified percentage on line 155 of Part 1 has been modified.

In Part 4, columns 004, Quantity of captured carbon in tonnes for storage or use in eligible use, and 005, Total quantity of captured carbon in tonnes for storage or use in both eligible use and ineligible use, have been added to the table. The actual eligible use percentage in column 003 is now calculated based on the inputs in columns 004 and 005. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the value entered manually in column 003 is retained as an overridden value.

In addition, a custom question has been added on screen to indicate whether the corporation is subject to Part XII.7 tax for the current taxation year according to subsections 211.92(4) and/or (5) ITA. When the answer to this question is No, lines 405 and 410 as well as amount G are not calculated.

Part 5, Amounts allocated from partnerships, has been added to the form. Lines 190, 325 and 465 are now calculated based on the information provided in this part. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, amounts entered on lines 190, 325 and/or 465 are retained as overridden values on the corresponding lines.

Schedule 130, Excessive Interest and Financing Expenses Limitation

Changes have been made to Part 2F to implement the changes proposed in Bill C-15, the box Amount deducted for the year under paragraph 111(1)(a), to the extent that it does not reduce the taxable income for the year as determined on line 79, for taxation years ending after August 15, 2025 has been added to the program.

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

Line 546, J equals 5% of the reinsurance contract held amount included in H and in respect of incurred claims included in C, has been added to Part 8.

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

The table for the calculation of capital cost allowance (CCA) has been updated for the columns to correspond to the columns in Schedule 8.

Inducement, Inducement Calculation Workchart

The line Air quality improvement tax credit has been removed from Part Tax credits whose amount should be added to income – Federal following the removal of Schedule 65.

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

Summary, Corporate Taxpayer Summary

The Taxable capital used to calculate line 120 in Schedule 65 column in the Summary – taxable capital table of section Federal has been removed from the form following the removal of Schedule 65.

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

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

In the 2025 version of Form T106 Summary, the list of country codes at question 9 has been modified. Code 0X5 Non-resident in a tax jurisdiction for income tax purposes has been added. In addition, former code OTH Other has been replaced with 0XX Other.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if OTH had been entered as the country code, it will be replaced with 0XX.

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

In Part 1 – General information, lines 110 and 125, Fax number, have been removed. Lines 106 and 121, Extension, have been added.

In accordance with Bill C-15, which received Royal Assent on March 26, 2026, capital expenditures for depreciable property acquired after December 15, 2024, are now permitted in the calculation of SR&ED expenditures. The following changes apply:

In section B of Part 3, lines 350, 355, 390 and 400 have been added. In Part 4, the Capital Expenditures column has been added, along with lines 496, 504, 510, 512, 514a through 514e, 514, 516, 518, 532, 535, 540, 543, 546 and 558. The custom lines 514a through 514e appear on the screen only.

Lines 510 and 546 are calculated based on Schedule T1146, depending on which checkbox is selected on that form. When the checkbox The corporation is the transferee, i.e. the entity that receives an amount of SR&ED qualified expenditures is selected, line 510 is calculated based on the total amounts on line 020. However, when the checkbox The corporation is the transferor, i.e. the entity that transfers an amount of SR&ED qualified expenditures is selected, line 546 is calculated based on the total amounts from line 020. Line 540 is calculated based on all amounts on line 020 of Schedule T1145 when the checkbox The corporation is the transferee, i.e. the entity that receives an assistance amount for RS&DE is selected.

In Part 6A – Project costs, column 759, Lease costs of equipment used in the tax year, has been added. The amount in this column must be entered on the corresponding line of Schedule T661 Part 2.

Part 6B – Capital expenditures has been added to provide information on the 20 largest ($) capital expenditures claimed in the year. The names of the property in column 780’s drop-down menu are generated from all properties entered on line 262 of Schedule T661 Part 2. For more information, consult the note relating to this topic.

Part 6C – Shared-use-equipment has been added to provide information on the 20 largest ($) shared-use-equipment expenditures claimed in the year.

T661 Part 2, Project Information*

Custom line 759, Lease costs of equipment used in the tax year, has been added to the screen. You must enter the portion of the amounts on lines 350 and 355 that relates to the project for lease expenditures incurred after December 15, 2024.

Line 207, Canada Research and Development Classification (CRDC) Field of research code, has been added. Please enter the appropriate code. In addition, lines 212, Project was pre-approved, and 214, If you checked the box on line 212, provide your pre-approval reference number, have been added.

In Section C – Additional project information, items 262 and 263 have been added. If you are reporting capital expenditures on depreciable property acquired after December 15, 2024, you must provide information on the 10 largest ($) capital expenditures claimed that were used for the project. The names of the property entered in column 262 will be used to generate a list in a drop-down menu on line 780 of Form T661. For more information, consult the note relating to this topic.

T1145, Agreement to Allocate Assistance for SR&ED Between Persons Not Dealing at Arm's Length*

Pursuant to section 5 of Bill C-15, Form T1145 now includes two separate lines to break down the amount of allocated assistance for SR&ED between current and capital expenditures: line 015, Current expenditures, and line 020, Capital expenditures. Only capital expenditures incurred after December 15, 2024, should be included on line Capital expenditures. The amounts entered on lines 015 and 020 are reported on Form T661 as follows:

• 015: line 538;

• 020: line 540.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the value manually entered on line 010 will be retained as an overridden value.

T1146, Agreement to Transfer Qualified Expenditures Incurred in Respect of SR&ED Contracts Between Persons Not Dealing at Arm's Length*

Pursuant to section 5 of Bill C-15, Form T1146 now includes two separate lines to break down the amount transferred between the transferor and the transferee for expenditures eligible under the SR&ED program: line 015, Current expenditures, and line 020, Capital expenditures. Only capital expenditures incurred after December 15, 2024, should be included on line Capital expenditures. The amounts entered on lines 015 and 020 are reported on Form T661 as follows:

• 015: lines 508 (transferee) and 544 (transferor);

• 020: lines 510 (transferee) and 546 (transferor).

Automobile Expenses, Non-Deductible Leasing Costs and Other Expenses

The limit relating to the acquisition cost of an automobile is increasing to $39,000, and the monthly limit for deductible leasing costs remains at $1,100 in respect of leasing contracts beginning after December 31, 2025.

 

Ontario

Schedule 508, Ontario Research and Development Tax Credit

In accordance with Bill C-15, which received royal assent on March 26, 2026, capital expenditures for depreciable property acquired after December 15, 2024, are now allowed in the calculation of SR&ED expenditures.

Since Ontario legislation refers to the applicable federal provisions, lines have been added on screen to Part 1 to report capital expenditures. A column for this purpose has also been added to the custom section Schedule A.

Schedule 566, Ontario Innovation Tax Credit

In accordance with Bill C-15, which received royal assent on March 26, 2026, capital expenditures for depreciable property acquired after December 15, 2024, are now allowed in the calculation of SR&ED expenditures.

Since Ontario legislation refers to the applicable federal provisions, columns have been added on screen to Part 7 to report capital expenditures. A column for this purpose has also been added to the custom section Schedule A.

Schedule 570, Ontario Regional Opportunities Investment Tax Credit*

The update to the schedule has resulted in the removal of several lines. This includes former lines D, E, F, G, H and 110 in Part 1, O, P, Q and 225 in Part 2 as well as U, 330, V and 335 in Part 3.

These deletions pertain specifically to provisions relating to the additional 10% refundable tax credit applicable to eligible expenditures incurred for eligible property that becomes available for use after March 23, 2021, and before January 1, 2024.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the values entered on the removed lines will not be retained.

Schedule 572, Ontario Made Manufacturing Investment Tax Credit*

The form has been updated to reflect the modifications made to the credit in the budget tabled on May 14, 2025.

First, the refundable tax credit that can be claimed by a CCPC has been enhanced: the credit rate is increasing from 10% to 15% for eligible property acquired after May 14, 2025. Therefore, Part 2 of the schedule has been modified. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the overridden amount entered on line 106 is retained on line 125.

Second, a non-refundable tax credit can now be claimed by a corporation other than a CCPC for eligible property acquired after May 14, 2025. The unused balance of the credit may be carried forward to any of the following ten years. Accordingly, Parts 3, 4 and 5, as well as the custom table Summary and analysis of the credit, have been added to the schedule. The calculation of the non-refundable credit is very similar to the refundable credit. The 15% rate is applied to the capital cost of the eligible property (property in one of the following CCA classes: 1a, 43a or 53). The $20 million limit to be shared among associated corporations also applies. The non-refundable credit claimed is calculated on line 460 and is reported on line 421 of Schedule 5.

Third, the corporation (whether it is a CCPC) may have to repay the tax credit claimed if property that allowed the corporation to claim the credit is sold, converted or removed from Ontario during the taxation year and if the property had been acquired:

• During the current taxation year or during any of the previous five taxation years; and

• After May 14, 2025.

Part 6 of the form calculates the amount that must be repaid. Amount 6A is reported on line 281 of Schedule 5 to be added to the revenue.

Finally, both the refundable and the non-refundable tax credits will expire for expenditures incurred after 2029.

 

Québec

CO-17S.3, Dividends Received and Taxable Dividends Paid

Following the update of Schedule 3 of the federal government, the custom field Dividends deductible from taxable income under subsection 746(c) TA (this amount is included on line 256 of the CO-17 return) on Form CO-17S.3 is now equal to amount 1A in Part 1 of Schedule 3 of the federal government. Furthermore, if an amount is entered into this custom field, Form CO-17S.3 will be applicable.

CO-130.A, Capital Cost Allowance

To correctly calculate the CCA in column J, the amount of columns C.1, F.1, F.2 and F.3 include both the amount related to AIIP and ZEV acquired before 2025 as well as to the RIIP and ZEV acquired after 2024.

CO-400, Resource Deduction

The custom lines A, B and C have been added to subsection 3.1.1, under line 75, to indicate the adjusted reaccelerated COGPE incurred in the taxation years subsequent to 2024.

Furthermore, the custom lines D, E and F have been added to subsection 4.1.1, under line 139, to indicate the adjusted reaccelerated CDE incurred in the taxation years subsequent to 2024.

The custom fields Accelerated COGPE incurred before 2024 to calculate the average rate for a taxation year straddling January 1, 2024 in subsection 3.1.1 and Accelerated CDE incurred before 2024 to calculate the average rate for a taxation year straddling January 1, 2024 in subsection 4.1.1 have been removed, as taxation years prior to 2024 are no longer covered by the program.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, values related to the removed lines will not be retained.

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

A modification has been made to subsection 4.1.5, Qualified R&D expenditures for the taxation year. Line 61a has been added to indicate capital expenditures related to the acquisition of property used in R&D that has contributed to the creation, the development or the improvement of the asset. This new line applies to all taxation years beginning after March 25, 2025.

CO-1029.8.33.13, Tax Credit for the Reporting of Tips

As requested by Revenu Québec, the amount on line 28e is now equal to the amount on line 27.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the amount entered on line 28e will not be retained.

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

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

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 93020 Hébertville, 93025 Hébertville Station and code 93030 Saint-Bruno have been replaced by code 93022 Hébertville.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, if codes 93020 Hébertville, 93025 Hébertville Station or 93030 Saint-Bruno had been entered, they will be replaced by code 93022 Hébertville.

CO-1029.8.36.PS, Tax Credit to Support Print Media Companies

Following the announcement of the 2026-2027 budget tabled on March 18, 2026, the Government of Québec has announced an increase in the annual limit of qualified salary or wages, up from $75,000 to $85,000.

The question For a taxation year or fiscal period, as the case may be, that ends after March 18, 2026, has the corporation or partnership filed an election in writing with Investissement Québec to the effect that the amendments announced in the budget will not apply in respect of a taxation year or fiscal period that began before March 18, 2026? has been added, on screen only, to section Identification.

Where the taxation year straddles March 18, 2026, or where the partnership's fiscal period ends after March 18, 2026, and the answer to this question is Yes, the annual limit on line 15 is $75,000. Otherwise, the annual limit is $85,000.

For a taxation year or fiscal period ending on or before March 18, 2026, the annual limit is $75,000.

For a taxation year beginning after March 18, 2026, the annual limit is $85,000.

MR-69, Authorization to Communicate Information or Power of Attorney

A 2D bar code can be generated when printing a MR-69 form with no signature date on line 72. As a result, we have modified our validations to allow 2D bar code printing in this situation. However, please note that a signature date on line 72 is still mandatory upon transmitting the MR-69 form electronically. Therefore, line 6, The date of signature has been entered in Part 5 of the form, has been added to the Step 2 – Electronic filing section.

QC L440P-Y, Additional Québec Credits

Following the implementation of Form CO-1029.8.36.55, the calculation of the tax credit for the construction of a vessel (code 014) and the calculation of the tax credit for the conversion of a vessel (code 015) have been added. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, the amounts entered on lines 014 and 015 will be retained as overridden values.

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

In the Additional Information document of the 2025–2026 budget, item 4 of the Measures retained states that Quebec’s tax legislation and regulations will be amended to make capital expenditures eligible for the SR&ED expense deduction. This measure applies to depreciable property acquired after December 15, 2024. To this end, calculations have been added to lines 35A, 35B, 37B, 48A and 48B based on the data entered in Schedule T661. Please note that the text of the form has not been updated.

TP-130.EN, Immediate Expensing Limit Agreement

Unlike the CRA, which has completely removed Part 1 in Schedule 8, Revenu Québec has confirmed that Form TP-130.EN should be filed by all members of an associated group when one of the members is entitled to and claims an immediate expensing (IE) amount. A corporation may therefore be required to file the form if it is associated with an individual or a partnership whose members are all individuals who claim an IE amount on their return.

Consequently, the custom question Would you like to make Form TP-130.EN applicable? has been added below the instructions at the top of the form. The form can then be completed manually; it will be printed and submitted (electronically or printed) to Revenu Québec.

 

British Columbia

Schedule 425, British Columbia Scientific Research and Experimental Development Tax Credit

In British Columbia’s budget and Bill 2, the government announced that the British Columbia SR&ED credit aligns with the federal government’s announced measures regarding SR&ED expenditures and the investment tax credit (Bill C-15), specifically:

• The calculation of the SR&ED expenditure limit;

• An eligible Canadian public corporation (ECPC) can now claim the refundable tax credit;

• Capital expenditures are eligible for the tax credit; and

• The sunset date for the SR&ED tax credit has been removed.

The first two points apply to a taxation year beginning after December 15, 2024. The calculation for line A of Section 4 has been modified accordingly to be based on either the amount on line 410 of Part 10A, SR&ED expenditure limit for a CCPC with an TYS before December 16, 2024, or the amount on line 410 of Part 10B, SR&ED expenditure limit for TYS after December 15, 2024, for a CCPC or a ECPC, from Schedule 31. For more information, consult the note relating to this topic.

The third point applies to depreciable property acquired after December 15, 2024. To that end, in the custom section Schedule A, the Capital column has been added to calculate qualified expenditures incurred in British Columbia in the tax year. The sum of amounts n and N is therefore reported on line 350.

 

Alberta

AT1 Schedule 4, Alberta Foreign Investment Income Tax Credit*

AT1 Schedule 10, Albert Loss Carry-Back Application*

AT1 Schedule 12, Alberta Income/Loss Reconciliation*

The custom line Restricted interest and financing expenses has become an official line. It is now designated as lines 130 for Alberta and 131 for federal purposes.

Similarly, the custom line Employer deduction in respect of non-qualified securities has been renamed Employer deduction for non-qualified securities. It has also become an official line and is now designated as lines 140 for Alberta and 141 for federal purposes.

AT1 Schedule 13, Alberta Capital Cost Allowance (CCA)*

The Alberta Tax and Revenue Administration has confirmed that it is aligning with federal measures but does not plan to modify the form in the short term. Therefore, to reflect the changes made to Schedule 8, the following modifications have been made:

• Fields for line 125 and columns 4 (line 039), 9 (line 041), 11 (line 043) and 12 (line 045) have been removed. Therefore, the line and columns will appear blank on the printed form, but they are no longer transmitted electronically or included in the RSI (Return and Schedule Information for Alberta) document.

• The amounts in columns 14, 16, 17 and 18 include amounts related to AIIP and ZEV acquired before 2025 as well as RIIP and ZEV acquired after 2024 to correctly calculate the CCA amount in column 23.

AT1 Schedule 15, Alberta Resource Related Deductions*

The federal government has added the additional deduction for reaccelerated Canadian development expenses (RCDE) and for reaccelerated Canadian oil and gas property expenses (RCOGPE), effective for expenses incurred after 2024 but before 2034.

Line Deduction in respect of the reaccelerated Canadian development expenses has been added, on screen only, under field Deduction in respect of the accelerated Canadian development expenses of section Area D to take into consideration the new 15% rate applicable for qualifying expenses incurred in the taxation year prior to 2030. Lines ACDE incurred before 2024 and ACDE incurred after 2023 have been removed, as the taxation years prior to 2024 are no longer covered by the program.

Line Deduction in respect of the reaccelerated Canadian oil and gas property expenses has been added, on screen only, under field Deduction in respect of the accelerated Canadian oil and gas property expenses of section Area E take into consideration the new 5% rate applicable for qualifying expenses incurred in the taxation year prior to 2030. Lines ACOGPE incurred before 2024 and ACOGPE incurred after 2023 have been removed, as the taxation years prior to 2024 are no longer covered by the program.

When opening a return prepared with a prior version of CCH iFirm Taxprep T2, values related to the removed lines will not be retained.

AT1 Schedule 16, Alberta Scientific Research Expenditures*; and

AT1 Schedule 29, Alberta Innovation Employment Grant

Since, at the federal level, capital expenditures related to depreciable property acquired after December 15, 2024, are now eligible for inclusion in the calculation of SR&ED expenditures, and since Alberta’s legislation refers to the applicable federal provisions, lines 002 of Schedule 16 and 003 of Schedule 29 also take capital expenditures into account. For more information about capital expenditures, consult the note relating to this topic.

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

The custom line Restricted interest and financing expenses (RIFE) deducted in the year has been renamed RIFE deducted in the year under paragraph 111(1)(a.1) of ITA and now constitutes an official line. Similarly, the custom line Employer deduction in respect of non-qualified securities has been renamed Employer deduction for non-qualified securities – Paragraph 110(1)(e) of ITA and now also constitutes an official line. Its value must correspond to the amount reported on line 352 in section Taxable income of Schedule 200. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, any overridden value on this line will be deleted.

Furthermore, sections Continuity of Restricted interest and financing expenses (RIFE) and Restricted interest and financing expenses (RIFE) under paragraph 111(1)(a.1) of ITA have been added at the end of the schedule. Accordingly, when restricted interest and financing expenses exist for the current year or a prior year, these new sections must be completed. The amount reported on line 240 will be carried forward to line 002, which is replacing former line A. When opening a return prepared with a prior version of CCH iFirm Taxprep T2, any override previously made on line A will be transferred to line 240.

When rolling forward a client file in which the amount reported on line 250 differs from the amount reported on line 780 of Schedule 4, the amount on line 250 will be carried forward to line 200. Otherwise, line 200 will be calculated based on the amount reported on line 700 of Schedule 4.

AB Authorization, Alberta Consent*

 

Saskatchewan

SCT1, Corporation Capital Tax Return*

As announced in the 2026 Saskatchewan budget, Bill 51 has introduced major capital tax changes, and Form SCT1 was modified to account for those changes.

Corporation capital tax rates have changed. For small financial institutions, the tax rate is going down from 0.7% to 0% for a taxation year or portion of a taxation year starting on or after April 1, 2026. For financial institutions, the tax rate is going up from 4% to 6% for a taxation year or portion of a taxation year starting on or after April 1, 2026. For Crown corporations, the tax rate is going down from 0.6% to 0.3% for a taxation year or portion of a taxation year starting on or after April 1, 2026. Similarly, that rate is going down from 0.3% to 0% for a taxation year or portion of a taxation year starting on or after April 1, 2027.

The former section Financial institution to which subsection 14(2.2) of the Saskatchewan Corporation Capital Tax Act applies in Part 1 of Schedule A was rebuilt for amalgamated financial institutions that have a taxation year or portion of a taxation year ending before April 1, 2026, as they may use the small financial institution’s tax rate of 0.7% to calculate the corporation capital tax payable on the first $1.5 billion and the financial institution’s tax rate of 4.0% on the excess. For taxation years or portions of a taxation year starting on or after April 1, 2026, this section does not apply, as the new financial institution tax rate of 6.0% must be used.

Additionally, telecommunications corporations are usually subject to a telecommunications tax of 0.9% on their telecommunications capital. Effective April 1, 2027, the telecommunications tax will be eliminated. For taxation years starting on or after April 1, 2027, the telecommunications tax will no longer be calculated.

Finally, goodwill allowance is no longer deducted in the calculation of the taxable paid-up capital in Part 1 of Schedule B. As such, goodwill allowance was completely removed from the return and is no longer calculated in Part 2 of Schedule B. Calculations in Part 6 of Schedule B and Part 3 of Schedule D have also been modified to reflect this change.

Top

Corrected Calculations

The following problems have been corrected in version 2026 1.0:

• Schedule 8 WORKCHART and AUTO LEASE – Automobile expense deduction limits for acquisitions and leases entered into after 2025 are incorrect

• Schedule 8 – Modifications to the capital cost allowance published in Bill C-15

Top

Reintroducing Telephone Support

As announced on February 18, 2026, you can now contact our support teams directly by phone Monday to Friday, from 10:00 a.m. to 5:00 p.m. (ET), when a live conversation is preferred.

Reintroducing phone support adds another way for you to engage with us, ensuring flexibility while maintaining the high level of service you expect.

To help you navigate the phone menu, we invite you to read the following article, which details all the available options: What are the phone menu options for 1-800-268-4522?

 

Digital support remains available

Our Knowledge Base, Support Platform, Virtual Agent, and Live Chat continue to provide convenient, efficient, and prioritized ways to get help.

Register for our Support Platform and log in to our virtual agent to find answers, submit a support ticket or chat with a live agent.

For more details about the web ticketing system and best practices, watch the following “How to” videos:

• How to Register for the Support Platform to Begin

• How to Open a Support Case

• How to Manage Your Support Cases

• How to Reset Your Support Platform Password

 

Useful support links:

Knowledge Base

More than 40,000 articles that answer the technical and tax questions most commonly asked to Support Centre agents.

 

Video tutorials and eHub training videos

We offer a wide range of training videos on how the applications work and their most frequently used features. You can also access eHub training videos from within your application by clicking the question mark (Help) in the upper right corner of the screen.

 

CCH iFirm Taxprep Help Centres

Select your application and access the CCH iFirm Taxprep help topics. You can also access the help topics by pressing the F1 key from within a return.

 

Support platform to request online support

Submit questions and requests through the virtual agent, support cases or live chat.

 

Support website

The support site brings together hot topics, the Knowledge Base, the calendar of product release dates, and more. 

 

Contact the team that can meet your needs

Contact the team that can best meet your needs directly.

Top

CCH iFirm Taxprep T2 e-Bulletin

For your convenience, you are automatically subscribed to the CCH iFirm Taxprep T2 e-Bulletin, a free e-mail service that ensures you receive up-to-date information about the application. If you want to review your subscription to Taxprep e-Bulletin, visit https://support.cch.com/oss/canada and, in the Newsletter tab, select Subscription Manager.

Top