Intake Open for the Capital Investment Tax Credit
Posted Jul 17, 2017
The Capital Investment Tax Credit (CITC) provides a non-refundable tax credit to businesses involved in the activities of manufacturing, processing and tourism infrastructure for making timely capital investments in the purchase of machinery, equipment and buildings. The current application intake is open July 17- September 8, 2017 and the final intake period will be announced once finalized.
$70 million has been invested in CITC as a part of the Alberta Jobs Plan to assist businesses in making capital investments of $1 million or more. A 10% tax credit (up to a maximum of $5 million per year) will be awarded to successful businesses who are conditionally approved for the CITC and complete the investment as outlined in the approved Investment Plan. The credit offers a ten year carry forward period, allowing businesses to carry forward the credit until the entire amount has been applied against corporate income taxes owed, within ten years of the credit being granted. Only one approval will be granted per calendar year, per business.
The CITC has a two stage application process, businesses must apply for conditional approval and then for the tax credit certificate after the investment has been made. Applications must be submitted online through the online application portal. The portal will provide access to all the necessary documents to be completed as part of the application.
To be eligible a business must be registered or incorporated in Alberta under the Business Corporations Act, be involved in manufacturing or processing goods for sale or lease, or be providing or operating tourism infrastructure in Alberta for at least 120 consecutive days in a 12 month period. The program eligible investment must be of at least $1 million value and must satisfy any conditions for eligibility set out in the Investing in a Diversified Alberta Economy Act and the Alberta Capital Investment Tax Credit Regulation. The purchase of property after December 31, 2016 is eligible for CITC if it is acquired by the eligible business and used primarily for manufacturing or processing of goods for sale or lease, or providing or operating tourism infrastructure.
To learn more read the program guidelines, and to apply visit the Capital Investment Tax Credit page.