Alberta is accepting applications from investors for two new investment tax credit programs.
The Capital Investment Tax Credit (CITC) will have three competitive application intake periods. The first intake period began January 16, 2017 and will end on February 15, 2017. The Alberta Investor Tax Credit (AITC) will be provided on a first-come, first-served basis. Intake for the AITC began on January 16, 2017, and will remain open until the annual funding for the program is fully allocated. Both tax credits were announced during last year's Alberta budget. The enacting legislation received royal assent on December 9, 2016.
The CITC is a two-year program offering a non-refundable investment tax credit of up to $5 million to corporations incorporated or continued in Alberta. A credit of 10% of the corporation's eligible capital investments is available to corporations across the province involved in manufacturing, processing and tourism infrastructure making eligible capital investments of $1 million or more.
The AITC is a three year program offering a 30% tax credit to corporate and individual investors who pay income tax in Alberta, and who provide capital to Alberta small businesses doing research, development, or commercialization of new technology, new products or new processes. It is also applicable to investments in businesses that engage in interactive, digital media development, video post-production, digital animation or tourism.
Corporate investees must meet certain eligibility requirements, including being either incorporated or continued under Alberta's Business Corporations Act. These corporate investees include Eligible Business Corporations (incorporated or continued in Alberta and meeting certain business activity, size, and Alberta nexus tests), and Venture Capital Corporations (incorporated in Alberta solely for assisting in the development of eligible small businesses).
Investments made as of April 14, 2016 may be retroactively eligible for the AITC.
For more information, contact your KPMG adviser.
Information is current to January 31, 2017. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500