Try to achieve labour requirements for the year?
Throughout the year, taxpayer must take steps to:
identify “preparation or installation of” ITC eligible property and which persons engaged in it are “covered workers”;
identify what applicable prevailing wage requirements are;
take reasonable steps to ensure contractor compliance with compensation element of prevailing wage requirements;
meet work site notice requirements; and
meet apprenticeship requirements
Yes
Must claim at reduced tax credit rate
Must claim at reduced tax credit rate
Is taxpayer aware of any deficiency in actually meeting the prevailing wage requirements?
Has taxpayer made reasonable efforts to (1) meet apprenticeship, requirements, and (2) ensure contractors have met prevailing wage requirements?
Yes
No
No
Yes
No
ITC claim window: 18 months following year end (or 31/12/26, if later)
Deciding Whether To Claim Regular ITC Rate
May elect to meet labour requirements and claim regular tax credit rate; if deficiencies discovered, s.127.46(9) K/GN penalties not applicable
Taxpayer should claim at reduced tax credit rate; electing to meet labour requirements and claiming at regular tax credit rate may trigger s.127.46(9) K/GN penalties (10% reduction in ITC rate + penalty = 5% ITC rate reduction)