Intake status: Closed – Applications to register with the program are not being accepted.

Ministry responsible: Economic Development, Trade and Tourism

Overview

Effective October 24, 2019 the Capital Investment Tax Credit (CITC) program is being phased out.

Budget has been allocated to support participants that have already received conditional approval for capital investments through the program. Important information for conditionally approved participants as well as next steps are outlined on this page.

Please note:

  • No further application intake windows will take place.
  • Applications received through the January 2019 intake will not be processed or approved.

The CITC program provides a non-refundable tax credit valued at 10% of a corporation’s eligible capital expenditures, up to $5 million.

The CITC returns a percentage of the company’s capital investment costs, including the purchase of machinery, equipment and buildings, for projects related to manufacturing, processing or tourism infrastructure.

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

Conditionally approved participants

Tax credits will be honoured for companies that received Conditional Approval Letters through the first 3 intakes of the program that ran:

  • January 16 to February 15, 2017
  • July 17 to September 8, 2017
  • January 15 to March 16, 2018

Companies with conditional approval will still need to follow the guidelines and next steps for reporting on progress and applying for a tax credit certificate.

Next steps

Step 1. Reporting on progress

Once the Conditional Approval Letter is issued, the corporation must provide a progress report every 180 days from the date of the Conditional Approval Letter until the investment is complete.

The progress report must include:

  • the status of the acquisition of the eligible qualified property listed in the corporation’s approved investment plan
  • the status of what eligible qualified properties listed by the corporation in the approved investment plan are available for use

Forms for progress reporting will be available on the online application portal.

Step 2. Apply for the tax credit certificate

Tax credits must be requested through the online application portal.

Once the Eligible Qualified Property has been purchased and is available for use, the corporation must submit an application for the tax credit certificate.

As part of their application, applicants will be required to submit an updated status report of the Approved Investment Plan as well as an updated Economic Impact Assessment.

Step 3. Receiving the tax credit

If an investment is completed in the manner described in the Approved Investment Plan and Economic Impact Assessment, the corporation will receive the full value of the tax credit as listed in the Conditional Approval Letter.

If the investment does not go ahead as detailed in the Approved Investment Plan and Economic Impact Assessment, the corporation may not receive the tax credit or the corporation may receive a reduced value of the tax credit.

Tax credit certificates will be issued once the department has completed its review.

Additional program details

For more information on the CITC please refer to:

Contact

Connect with the CITC team:
Email: citc.program@gov.ab.ca