Step C of Schedule 1 - Net federal
tax
Claim the tax credits and calculate other tax amounts that apply to you using your information slips along with the instructions provided in Step C of your Schedule 1, and on any applicable worksheet and form. In this section of the guide, you will find information you may need to supplement the instructions on the Schedule 1.
This section does not provide supplementary information for lines 405, 409, 410, 412, and 415, as the instructions on the Schedule 1 provide the information you need.
There are no lines on the return for the recapture of the investment tax credit or for the federal logging tax credit. If these amounts apply, use them to calculate your net federal tax on Schedule 1. If the result of these adjustments is negative and you do not have to pay minimum tax (see Line 427 of this guide), enter "0" on line 417 of your Schedule 1.
Recapture of investment tax credit
If you have to repay all or part of an investment tax credit you received previously for scientific research and experimental development or for child care spaces, calculate on Form T2038(IND), Investment Tax Credit (Individuals), the amount you have to repay. Write "recapture of investment tax credit" and the amount below line 406 on your Schedule 1. Add it to the amount on line 406 of your Schedule 1.
Federal logging tax credit
If you paid logging tax to a province for logging operations you performed in the province, you may be able to claim a logging tax credit. To calculate your credit, use the lesser of the following two amounts for each province in which you had a logging operation:
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66.6667% of the logging tax paid for the year to the province
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6.6667% of your net logging income for the year in the province
Your allowable credit is the total of the credits for the year for all provinces, up to 6.6667% of your taxable income (line 260 of your return), not including any amounts on lines 208, 214, 215, 219, and 220 of your return. Write "federal logging tax credit" and enter the allowable amount below line 406 on your Schedule 1. Subtract it from the total of the amount on line 406 of your Schedule 1 and the amount of any applicable recapture of investment tax credits.
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