Capital Investment Tax Credit
The Capital Investment Tax Credit is a refundable corporate tax credit that can be claimed for capital costs directly related to acquiring qualified property for use in Nova Scotia as part of an approved project.
The Capital Investment Tax Credit (CITC) is aligned, but not harmonized, with the federal government's Atlantic Investment Tax Credit. With certain exceptions, the tax credit is available to eligible corporations in the manufacturing, processing, fishing, farming, logging, storing grain and harvesting peat sectors. The tax credit is also available to eligible corporations transporting freight, including satellites by space vehicle into orbit.
Tax credit amount
Tax credit amount for property acquired before 1 October 2022
The tax credit is 15% of the capital cost of qualified property minus related government assistance acquired before 1 October 2022. The maximum tax credit available for each approved project is $30 million across the duration of the project.
Tax credit amount for property acquired on or after 1 October 2022
The tax credit is 25% of the capital cost of qualified property minus related government assistance acquired on or after 1 October 2022. The maximum tax credit available for each approved project is $100 million across the duration of the project.
Application for Tax Credit Certificates
Submit a mandatory Part A application to apply for an Eligibility Certificate. Part A applications are used to determine the eligibility of your corporation and project for the Capital Investment Tax Credit. Corporations are encouraged to submit this mandatory application before acquiring qualified property as part of the project.
Submit a mandatory Part B application to apply for a Tax Credit Certificate. Part B applications can be submitted once you have an Eligibility Certificate (Part A approval) and have acquired qualified property as part of the approved project. Multiple Part B applications can be submitted if an approved project spans across multiple tax years. Part B applications must be submitted no later than 18 months following the end of the tax year in which the qualified property was acquired by the corporation.
Once you receive your Tax Credit Certificate, you can claim the tax credit on the corporation's T2 Corporation Income Tax Return with Canada Revenue Agency.
Before you start
Make sure you review detailed criteria in the Capital Investment Tax Credit Guidelines (PDF).