T2039 - fill out and auto calculate/complete form online

Canada Revenue
Agency

Agence du revenu
du Canada

Protected B when completed

Air Quality Improvement Tax Credit
(for the 2022 tax year)

•

If you are an individual (other than a trust), use this form to claim your Air Quality Improvement Tax Credit (AQITC). An individual (other than a trust) is
considered to be an eligible entity.

•

If you are a member of a partnership and you are only claiming the AQITC allocated from your partnership, only fill in line 67090 and amount E in Part 2.

•

The AQITC is a 25% refundable tax credit available to eligible entities for qualifying expenditures made or incurred during the qualifying period to improve
air quality in qualifying locations. Eligible entities are limited to a maximum of $10,000 in qualifying expenditures per qualifying location and a maximum of
$50,000 across all qualifying locations. Eligible entities that are affiliated must share these limits.

•

The AQITC is considered to be government assistance received immediately before the end of the tax year to which it relates. However, when the assistance
is received for the acquisition of a depreciable property, the capital cost of the property is reduced by the amount of the assistance. For more information,
read "Grants, subsidies, and rebates" under section "Special situations" in Chapter 4 of Guide T4002, Self-employed Business, Professional, Commission,
Farming, and Fishing Income.

•

Individuals can only claim an AQITC for their qualifying expenditures in the 2022 taxation year, even if they have an alternative fiscal period end for their
business. In Part 1, include all of your qualifying expenditures made or incurred from September 1, 2021 to December 31, 2022.

Note:

If you are a member of a partnership, do not include in Part 1 any qualifying expenditures made or incurred by the partnership. The AQITC allocated to
you by the partnership for its fiscal period ending in 2022 is to be entered on line 67090 in Part 2. Any AQITC allocated to you by the partnership for its
fiscal period ending in 2023 is to be entered directly on line 47557 of your 2023 income tax and benefit return.

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Fill in this form and send it with your income tax and benefit return.

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Unless otherwise stated, all legislative references are to the federal Income Tax Act.

Definitions

Eligible entity

An eligible entity means a qualifying corporation, an individual (other than a trust) and a partnership.

Qualifying expenditures

A qualifying expenditure is an expenditure prescribed by regulation that was made or incurred by an eligible entity during the qualifying period in the course of
the eligible entity's ordinary commercial activities.
In general, qualifying expenditures are those made or incurred for the purchase, installation, conversion or upgrade of mechanical heating, ventilation and air
conditioning (HVAC) systems or the purchase of standalone devices designed to filter air using high-efficiency particulate air (HEPA) filters.
For more information, see subsection 9700(2) of the Income Tax Regulations for the qualifying expenditures that are prescribed.

Qualifying location

A qualifying location of an eligible entity is a real or immovable property (other than property that is a self-contained domestic establishment, or part of such a
self-contained domestic establishment, the land subjacent to the self-contained domestic establishment and such portion of any immediately contiguous land as
can reasonably be regarded as contributing to the use and enjoyment of the self-contained domestic establishment as a residence) in Canada used by the
eligible entity primarily in the course of its ordinary commercial activities.

Qualifying period

The qualifying period starts September 1, 2021, and ends on December 31, 2022.

T2039 E (22)

(Ce formulaire est disponible en français.)

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Protected B when completed

Part 1 – Total per location expense

Name and address of the qualifying location

Your qualifying
expenditures
See note 1

Amount of
assistance
See note 2

Your net qualifying
expenditures
(column 2 minus
column 3)

Total qualifying
expenditures of
affiliated eligible
entities for which
a credit was
claimed in any
taxation year

$10,000 minus
column 5
(if negative
enter "0" )

Your total per
location expense
(the lesser of
column 4 and
column 6)

Your total net qualifying expenditures: Total of column 4

67085

Total qualifying expenditures of affiliated eligible entities for which a credit

was claimed in any taxation year: Total of column 5 . . . . . . . . . . . . . . . . . . . . . .

67087

Total of all of your total per location expense: Total of column 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67086

Note 1:

Include all your qualifying expenditures made or incurred from September 1, 2021 to December 31, 2022. If you are a member of a partnership, do not
include qualifying expenditures made or incurred by the partnership.

Note 2:

Include all amounts of assistance you received, are entitled to receive, or can reasonably be expected to receive for qualifying expenditures included in
column 2, which have not been repaid before the end of the tax year under a legal obligation.

T2039 E (22)

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Part 2 – Air quality improvement tax credit calculation

Amount from line 67086 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Your total ventilation expense limit: $50,000 x Percentage (see note 3)

67088

% • = . . . . . . . . . . . .

Your total ventilation expense (enter the lesser of amounts A and B) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amount C

x 25% . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Air quality improvement tax credit allocated from partnerships (see note 4) . . . . . . . . . . . . . . . . . . . . . . . . . . . .

67090

•

Air quality improvement tax credit (amount D plus amount from line 67090) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Enter amount E on line 47557 of your income tax and benefit return.

Note 3:

If you are affiliated with another eligible entity, enter the percentage assigned to you in Part 3. Otherwise, enter 100%.

Note 4:

Enter the total of all the air quality improvement tax credit amounts allocated to you for 2022 by the partnerships of which you are a member.
The tax credit amount allocated to you by each partnership for 2022 is reported in box 238 of your 2022 T5013 slip or in a letter. Any amounts reported
in box 238 of your 2023 T5013 slip or in a letter will be entered directly on line 47557 of your 2023 income tax and benefit return.

Part 3 – Agreement between affiliated eligible entities

Fill in this part to allocate the $50,000 limit if you are affiliated, at any time in the qualifying period, with any other eligible entity that has qualifying expenditures
for which the air quality improvement tax credit is being claimed and you have entered into an agreement with each such eligible entity. If there is no agreement
to allocate the limit, the credit cannot be claimed.

Enter the percentage assigned to each member of the affiliated group (including you) under the agreement.

The total of all the percentages assigned under the agreement cannot be more than 100%.

If two eligible entities are affiliated with the same eligible entity, they are deemed to be affiliated with each other.

Name of eligible entity

Percentage
assigned under
the agreement

Total

See the privacy notice on your return.

T2039 E (22)

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