Investment Tax Credits (ITC) for Qualified Property
no fixed amount
Tax Credit
Description:
A corporation can earn ITCs on qualified property acquired mainly for use in designated activities in the Atlantic region.
Comments on Funding:
The ITC rate for qualified property is 10%.
Rolling deadline
Eligibility:
Applicants must be corporations with a qualified property acquired mainly for use in the following designated activities, including:
1. manufacturing or processing goods for sale or lease;
2. logging;
3. farming or fishing;
4. storing grain;
5. harvesting peat.
Application Steps:
1. Applicants can deduct the full amount of ITC against federal Part I tax payable. If they are claiming an ITC for a depreciable property, reduce the capital cost of the property in the next tax year by the amount of this year’s ITC. For more information, see Schedule 8, Column 5 – Adjustments and transfers.
2. Applicants must complete Schedule 31 and enter the amount of the ITC for the current year on line 652 or 780.
Documentation Needed:
Applicants must provide a completed Schedule 31, and other required forms as requested.
Other Things to Note:
About the author
Maurice
