Capital Investment Tax Credit (CITC) | Government of Alberta

Value: The CITC offers a 10% tax credit on capital expenditures, up to a maximum of $5,000,000.

Description:

As part of the Alberta Jobs Plan, the Alberta government has invested $70 million in a Capital Investment Tax Credit (CITC) for manufacturing, processing and tourism infrastructure that will spur economic diversification and job creation.

The CITC is a 2-year program that provides a non-refundable tax credit valued at 10% of a corporation’s eligible capital expenditures, up to $5 million. The CITC encourages companies to make timely capital investments by returning a percentage of the company’s costs, including the purchase of machinery, equipment and buildings.

The CITC can only be claimed when the capital purchased is in use and the firm is earning profits and paying taxes.

Eligibility:

  • Alberta businesses conducting manufacturing, processing or tourism infrastructure activities
  • Be incorporated, continued or registered in Alberta under the Business Corporations Act
  • Be involved in the business activities of 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
  • Be making a total eligible investment value of at least $1,000,000
  • Satisfy any conditions for eligibility set out in the Investing in a Diversified Alberta Economy Act and the Alberta Capital Investment Tax Credit Regulation

Eligible Expenses:

The eligible costs under this program include the purchase of machinery, equipment and buildings that closely align to capital costs allowed under the federal government’s Capital Cost Allowance.

Eligible Qualified Property – or a property/purchase that is eligible for a tax credit – must be acquired by the eligible corporation to be used primarily for:

  • Manufacturing or processing of goods for sale or lease as defined in subsections 127(9) and (11) of the federal Income Tax Act, with the exclusion of Section 127(9)(b.1)
  • Providing or operating tourism infrastructure that, subject to the regulations, is property or in a class of property included in Schedule II of federal Income Tax Regulations

Deadline: Currently closed. Future deadline to be determined.

Contact: Government of Alberta | CITC.program@gov.ab.ca

Website: https://www.alberta.ca/capital-investment-tax-credit.aspx

By | 2018-08-07T02:14:43+00:00 August 2nd, 2018|Categories: Grants|0 Comments

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