Known Issue: CCUS ITC Rate Reduction on T2SCH78

We are aware of an issue where TaxCycle is not automatically reducing the rate in column 155 of T2 Schedule 78 (Carbon Capture, Utilization, and Storage Investment Tax Credit) by 10% when no election is made under ITA 127.46(2).

As per the instructions on page 1 of Schedule 78, if no election is made under ITA 127.46(2) to meet labour requirements for the designated work site ("No" is selected in column 165), the rate in column 155 must be reduced by 10%. TaxCycle is not reducing the rate by 10% as expected. 

Workaround

Override the amount in column 155 to manually reduce the rate by 10%.

Anticipated Resolution

We will resolve this issue in the next TaxCycle update.