T2038(Page 4-6) - fill out and auto calculate/complete form online

Protected B when completed

Detailed information and definitions (continued)

Refund of ITC

If you do not use all of your current year ITC to reduce your federal income tax in the year or in the three previous years, the
CRA may refund to you 40% of your unused ITC. You can only claim this refund in the year you buy property or make an
expenditure that qualifies for the credit, unless the available for use rules (or other rules deeming the expenditure to have
been made in a later year) apply. To claim a refund of an ITC, complete Part E of this form. Enter your refund amount on
line 45400 of your income tax and benefit return. If a partnership or trust made the investments, enter only your share of the
amount.

Adjustments

The credit you claim or that the CRA refunds to you for 2024 reduces the capital cost of the property. Any 2024 credit you
carry back to a previous year will also reduce the capital cost of the property. Make this adjustment in 2025. This adjustment
reduces the capital cost allowance you can claim for the property. It also affects your capital gain when you dispose of the
property. You might have claimed a credit or received a refund for 2024 for a property that you already disposed of. In
addition, you might still have other property in the same class. If so, reduce the undepreciated capital cost of the class for
2025 by the amount of the credit you claimed or received as a refund. If, after the disposition, you do not have any property
left in the same class, include the amount of the credit you claimed or received as a refund in your 2025 income.

Enter the amount as other income on line 9600 if you are filing any of the following forms:

•

Form T2121, Statement of Fishing Activities

•

Form T2042, Statement of Farming Activities

•

Form T1163, Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities
for Individuals

•

Form T1164, Statement B – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for
Additional Farming Operations

•

Form T1273, Statement A – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming
Activities for Individuals

•

Form T1274, Statement B – Harmonized AgriStability and AgriInvest Programs Information and Statement of Farming
Activities for Additional Farming Operations

If you are filing Form T2125, Statement of Business or Professional Activities, enter the amount on line 8230.

An ITC deducted or refunded for SR&ED will reduce the pool of deductible SR&ED expenditures, the adjusted cost base (ACB)
of an interest in a partnership, and the ACB of a capital interest in a trust in the next tax year.

For more information on ITCs and their recapture, visit canada.ca/revenue-agency or see the SR&ED Investment Tax Credit
Policy, and Interpretation Bulletin IT411, Meaning of "Construction", Information Circular IC78-4, Investment Tax Credit Rates,
and IC78-4, Special Release – Investment Tax Credit Rates.

Part A – Calculating the current-year refundable ITC

Scientific research and experimental development (SR&ED)

ITC for qualified expenditures for SR&ED (amount from
line 559 of Form T661 plus applicable amount from box 40*

of your T3 slip, minus amounts from lines 67130 and 67135) . . . . . . .

67120

x 0.15 =

80% of total contributions made to agricultural organizations

for SR&ED . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67130

x 0.15 =

ITC allocated from a partnership for SR&ED

(see boxes 186, 187, and 189 of your T5013 slips) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67135

• 3

Qualified property

ITC for total investments in qualified property (include applicable

amount from box 40* of your T3 slip) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67140

x 0.10 =

Total current-year refundable credits (add amounts 1 to 4)

Enter amount A in column 2 in Part F . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

* Enter the amount from box 40 of your T3 slip as applicable, based on the code in box 43 in Guide T4013, T3 Trust Guide,
and the instructions provided in the statement by the trust.

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Protected B when completed

Part B – Calculating the current-year non-refundable ITC

Mineral exploration tax credit (METC)

Total of your flow-through mining expenditures related to mineral
exploration tax credit (also referred to as renounced Canadian
exploration expenses) from the appropriate line in Part IV of
Form T1229, Statement of resource expenses and depletion

allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67170

x 0.15 =

For more information about METC, see page 2.

Critical mineral exploration tax credit (CMETC)

Total of your flow-through critical mineral mining expenditures related
to critical mineral exploration tax credit (also referred to as
renounced Canadian exploration expenses) from the appropriate line
in Part IV of Form T1229, Statement of resource expenses and

depletion allowance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67175

x 0.30 =

For more information about CMETC, see page 2.

Apprenticeship job creation tax credit (AJCTC)

If your apprentice works for you and also works for a related employer as defined under subsection 251(2) of the Act, all related
employers have to agree in writing that you are the only employer who will be claiming the apprenticeship job creation tax credit
for this tax year for each apprentice whose contract number, social insurance number (SIN), or name appears below.

For each apprentice in their first 24 months of the apprenticeship, enter the apprenticeship contract number registered with
Canada, or a province or territory of Canada, under an apprenticeship program designed to certify or license individuals in the
trade. If there is no contract number, enter the SIN or the name of the eligible apprentice. Then, enter the name of the eligible
trade and the eligible salary and wages** payable in the year in respect of employment after May 1, 2006. The credit is 10% of
the total of the amounts in Table 1, column 3. Attach a note if more space is needed.

Table 1 – Calculation of total Apprenticeship job creation tax credit

1
Contract number
(SIN or name of apprentice)

2
Name of eligible trade

3
The lesser of
eligible salary
and wages* payable
in the
year or $20,000.

Total apprenticeship job creation tax credit (Total of amounts in

column 3 plus applicable amount from box 40* of your T3 slip) . . . .

67180

x 0.10 =

Repayment of assistance for SR&ED

If you made a repayment of any government or non-government assistance, or contract payments that reduced the amount of
qualified expenditures for ITC purposes, the amount of the repayment is eligible for a credit.

Repayment of assistance that reduced qualified
SR&ED expenditures incurred in 2014
and prior years (amount from line 560 of

Form T661). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67184

x 0.20 =

Repayment of assistance that reduced
qualified SR&ED expenditures incurred
in 2015 and subsequent years (amount from

line 560 of Form T661). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67185

x 0.15 =

Total repayment of assistance for SR&ED (add amounts 1 and 2) . . . . . . . . . . . . .

►

Total current-year non-refundable tax credits (add amounts B, C, D and E)

Enter amount F at amount 3 in Part D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

* Enter the amount from box 40 of your T3 slip as applicable, based on the code in box 43 in Guide T4013, T3 Trust Guide, and
the instructions provided in the statement by the trust.

** Net of any government or non-government assistance received or to be received in respect of eligible salary and wages.

T2038(IND) E (24)

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Protected B when completed

Part C – Recapture

Recapture – ITC on SR&ED expenditures

Amount of expenditure on which ITC earned at 15% (after 2013) is
recaptured. Do not enter more than the amount of the original

expenditure*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67193

x 0.15 =

Amount of expenditure on which ITC earned at 20% (before 2014) is
recaptured. Do not enter more than the amount of the original

expenditure*** . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67195

x 0.20 =

Total recapture of investment tax credit on SR&ED expenditures (add amounts 1 and 2) . . . . . . . . . . . .

You will report a recapture of SR&ED ITC on the T1 return for the year in which you disposed of the property or converted
it to commercial use. In the following tax year, add the amount of the ITC recapture to the SR&ED expenditure pool on
your T661 form.

Recapture – ITC for child care spaces

If, at any time within 60 months of the day that you create a new child care space, that space is no longer available, or if the
property acquired for a child care space is leased for any purpose or converted to another use, the CRA will recover the ITC
for that space or property.

If only child care spaces are disposed of, enter the amount originally claimed for those spaces . . . . . . . . .

If property other than child care spaces is disposed of, the amount will be the lesser of:

The amount originally claimed for ITC for the property disposed of . . . . . . . . . . . . .

25% of the proceeds of disposition of the eligible property

(or 25% of fair market value if disposed of to a non-arm's length party) . . . . . . . . .

Enter amount 5 or 6, whichever is less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Total recapture of investment tax credit for child care spaces (add amounts 4 and 7) . . . . . . . . . . . . . .

67197

Total recaptured credits (add amount 3 and the amount on line 67197)

Enter this amount on the Recapture of investment tax credit****

line of your income tax and benefit return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

*** If you have disposed of the property or converted it to commercial use, please enter the amount of ITC originally calculated
for the property, or the amount calculated using the ITC rate at the date of acquisition (or the original user's date of
acquisition) on either the proceeds of disposition (if sold in an arm's length transaction) or the fair market value of the
property (in any other case), whichever is less.

**** Line 128 for all provinces and territories, except Quebec and non-residents and deemed residents of Canada.

Line 132 for the federal Quebec returns.

Line 133 for the non-residents and deemed residents of Canada return.

For more information, see the Federal Income Tax and Benefit Information.

T2038(IND) E (24)

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