Line 454 – Refund of investment tax credit

If you are eligible for an investment tax credit (line 412 on Schedule 1) based on expenditures you made in the current year, you may be able to claim a refund of your unused investment tax credit. This refund will reduce the amount of credit available to you for other years.

You can carry back the credit you earned in the current tax year for up to three years and use it to reduce your federal tax. To do this, complete Part E of Form T2038(IND), Investment Tax Credit (Individuals) and submit the form with your income tax return.

You can carry forward credits earned in tax years that end after 1997 for up to 20 years. To do this, complete Part D of Form T2038(IND), Investment Tax Credit (Individuals) and submit the form with your income tax return.

Completing your tax return

Enter on line 454 the refundable part of your investment tax credit calculated on Form T2038(IND). Complete and attach Form T2038(IND) to your income tax return.

Be sure to complete the tax and credit form for your province or territory of residence. For more information, go to General income tax and benefit package.

Forms and publications

• Information Circular IC78-4R3, Investment tax credit rates and its Special Release

Related topics

• Atlantic investment tax credit
• Line 412 - Investment tax credit
• Your province or territory of residence

Date modified:

2016-12-15