Known Issue: Impact of Bill C-15 on the Alberta Innovation Employment Grant (IEG) Calculation (AT1 Schedule 29)
Federal Bill C-15 received Royal Assent on March 26, 2026, restoring eligibility for certain capital expenditures made after December 15, 2024, in the SR&ED program, and doubling the taxable capital phase-out thresholds for taxation years beginning after that date.
In June 2026, TaxCycle version 15.2.62988.0 updated line 003 of AT1 Schedule 29 to include capital expenditures from line 558 of Form T661.
However, Alberta Tax and Revenue Administration (TRA) has recently issued a special notice requiring that capital expenditures be excluded from the IEG calculation pending Alberta’s regulatory review. Information Circular IEG-1R5 and the Guide to Claiming the Alberta Innovation Employment Grant have been revised accordingly.
To comply with Alberta’s requirement, use the following line reference for the Alberta IEG tax credit calculation in AS29Steps, AS29, and AS29Project wherever a reference has been made to line 559 of T661:
Line 559 of Form T661 for taxation years ending before December 16, 2024
Line 557 of Form T661 for taxation years ending after December 15, 2024
Line 559 of Form T661 flows to line 003 on the AS29Step worksheet, which calculates AS29 line 003. Any capital expenditures in line 559 will incorrectly appear in both the worksheet and the final AS29 line 003.
Workaround
AS29, AS29Steps
For a corporation with its tax year ending before December 16, 2024: No workaround is needed.
For a corporation with its tax year ending after December 15, 2024: Manually override line 003 in Step 2 of the AS29Step worksheet to equal line 557 of Form T661.
AS29Project
Anticipated Resolution
We will resolve this issue in the next TaxCycle update.
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