What project developers can expect from CRA after filing a Clean Economy ITC claim — response timelines, review processes, audit risk factors, documentation retention, and payment mechanics. Published March 2025.
CRA's Initial Response
CRA has a 30-day target for initial processing of T2 refund claims, but complex ITC claims often take longer. CRA may request additional documentation before issuing a refund, particularly for first-time claimants and large claims.
Audit Risk
ITC claims are subject to CRA audit at any time within the normal reassessment period (generally four years). Claims with prevailing wage and apprenticeship requirements carry higher audit risk because of the documentation complexity. LCAB recommends maintaining complete records for six years.
Refund Mechanics
The ITC refund is issued as a direct deposit or cheque payment. For claims that exceed the corporation's tax payable, the refundable portion is paid in cash — this is one of the most valuable features of Canada's ITC framework compared to non-refundable credits.
Documentation Retention
All supporting documentation must be retained for at least six years after the filing year. This includes certified payroll records, apprenticeship registration documents, invoices, engineering reports, and any CRA correspondence.