Canadian ITCs: What Happens After Filing?

Unfortunately, filing for federal Clean Economy Investment Tax Credits (ITCs) is just the beginning of the process. If you’ve submitted a claim, two things are certain— 1) you will have to wait and 2) you will be audited.

Since the first ITC claims were filed last June, every (sizeable) claimant has received follow-up questions from the CRA as part of their preliminary review. At this stage, claimants have 30 days to respond to the CRA.

Note that, if you are filing an amended tax return to account for let's say a 2023 project (the deadline for which is June 30th btw) the CRA has as no defined review period, leaving claimants in a prolonged state of uncertainty.

Filing timeline/track for CRA ITC filings

Through our work supporting clients in responding to CRA inquiries, we’ve seen a clear pattern: the most common questions focus on cost segregation and labour records. Companies that proactively prepare supporting documentation (containing the right information in the right format)—rather than scrambling to compile materials after receiving CRA’s request—may significantly reduce processing time and thus get their money sooner!

The goal is to keep the ball in CRA’s court at all times, ensuring your claim progresses efficiently without delays due to missing documents. Especially when large amounts are at stake: being well-prepared can make a significant difference as to when you get your refund.

At LCAB, we specialize in helping companies manage the ITC's Labour Requirements proactively, ensuring documentation is in order before the review begins. If you want to accelerate your ITC recovery and minimize audit-related delays, please don’t hesitate to reach out or book time with us.