TaxTron T2 2026.1 – Release Notes

Whats new in T2 2026.1

T2 2026.1 introduces significant updates affecting federal and provincial corporate tax filings. These changes impact capital cost allowance (CCA), SR&ED claims, investment tax credits, and various provincial schedules. Below is a comprehensive summary of all key updates.

• Supports corporate tax returns for taxation years:

  • Beginning on or after Jan. 1, 2024

  • Ending on or before Oct. 31, 2026

Major Federal Changes

• Schedule 8 – Capital Cost Allowance (CCA)

  • New rules for:

    • Reaccelerated Investment Incentive Property (RIIP)

    • Accelerated Investment Incentive Property (AIIP)

  • Immediate expensing columns removed

  • New RIIP-related columns added

  • Passenger vehicle Class 10.1 limit increased to:

    • $39,000 for acquisitions after Dec. 31, 2025

• Schedule 8 WORKCHART

  • Updated for RIIP calculations

  • New fields for:

    • RIIP/ZEV additions and dispositions

    • UCC adjustments

  • "Is property a RIIP?" question added

  • Alberta calculations aligned with federal changes

• Schedule 3

  • New dividend deduction column under 113(1)(c)

• Schedule 5

  • New Ontario manufacturing and railway credits

• Schedule 75/76/78

  • Partnership allocation sections added

SR&ED Changes (Major)

Effective for expenditures after Dec. 15, 2024:

• Capital expenditures for depreciable property are now eligible for SR&ED ITC

• Enhanced 35% ITC available to:

  • CCPCs

  • Eligible Canadian Public Corporations (ECPCs)

• Expenditure limit increased to:

  • $6 million

• Revenue-based phase-out:

  • Begins at $15 million

  • Eliminated at $75 million

• Schedule 31 – Investment Tax Credit

  • Added:

    • ECPC rules

    • Revenue-based expenditure limit calculations

    • Clean Electricity ITC

    • SR&ED capital expenditure reporting

  • New Parts:

    • Part 10A (pre-Dec. 16, 2024)

    • Part 10B (post-Dec. 15, 2024)

• T661 – SR&ED Claim

  • Major updates for SR&ED capital expenditures

  • Added:

    • Capital expenditure reporting

    • Lease equipment costs

    • Shared-use-equipment reporting

    • Largest capital expenditure disclosure

    • CRDC field of research code

    • Pre-approval fields

• T1145 & T1146

  • Separate reporting for:

    • Current expenditures

    • Capital expenditures

Deleted Forms

• Federal

  • Schedule 65 – Air Quality Improvement Tax Credit

Ontario Updates

• Schedule 572 – Ontario Made Manufacturing Investment Tax Credit

  • Refundable credit rate increased:

    • 10% → 15% after May 14, 2025

  • New non-refundable credit for non-CCPCs

  • 10-year carryforward available

  • Credit repayment rules added

  • Credit expires after 2029

• Schedule 570

  • Removed temporary enhanced regional investment credit provisions

• Ontario SR&ED Credits

  • Capital expenditures now eligible:

    • Schedule 508

    • Schedule 566

British Columbia

• BC SR&ED credit aligned with federal Bill C-15:

  • ECPC refundable credit

  • Capital expenditures eligible

Alberta

• Alberta aligns with federal SR&ED and CCA changes

• New RIFE reporting sections added

• Capital expenditures added to:

  • Schedule 16

  • Schedule 29