Updated August 2026 · Verified against Canada Revenue Agency (CRA) guidelines
✓ First-Timer Friendly Tax Credit Offset Est. 1977
Tax Credit Federal Active

Atlantic Investment Tax Credit (AITC)

Canada Revenue Agency (CRA)
Maximum Credit
10% of eligible costs
Ongoing
Visit Official Program →
Difficulty
Easy
Payment
Tax Credit Offset
Trend
Stable
First-Timers
Friendly ✓
Credit rate
10%
Atlantic Investment Tax Credit (AITC) provides up to 10% of cost of qualifying new buildings and equipment. Investment tax credit of 10% on the cost of qualifying new buildings, machinery, and equipment used in Atlantic Canada (Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, and the Gaspé Peninsula in Quebec). Applications are accepted on an ongoing basis. Approval odds: ~100% (GrantCompass analysis)
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Eligibility & Details

What this program funds and who can apply

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Program Description

Investment tax credit of 10% on the cost of qualifying new buildings, machinery, and equipment used in Atlantic Canada (Newfoundland and Labrador, Nova Scotia, New Brunswick, Prince Edward Island, and the Gaspé Peninsula in Quebec). Fully refundable for Canadian-controlled private corporations (CCPCs) and partially refundable for others. One of the longest-running regional investment incentives in Canada.

Eligibility Requirements

  • Businesses investing in new buildings, machinery, or equipment in Atlantic Canada (NL, NS, NB, PE, Gaspé Peninsula)
  • Property must be new (not used)
  • Property must be primarily used in qualifying activities in Atlantic Canada
  • Fully refundable for CCPCs; partially refundable for other taxable corporations
Provinces
Newfoundland & Labrador Nova Scotia New Brunswick Prince Edward Island
Industries
All
Business Stage
Startup Growth Established Expansion

Quick Assessment

Difficulty
Easy
Competition
Low
First-Timer
Friendly

Funding Details

Amount
10% of cost of qualifying new buildings and equipment
Type
Tax Credit
Level
Federal
Credit rate
Up to 10% of eligible costs
Deadline
Ongoing

Program Scorecard

Competition, effort, and approval at a glance

Competition
Low
Deadline
Ongoing
Approval
Entitlement
Approval Rate
~100%
Accessibility
--/5
Competition
--/5
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What's in this Playbook

Everything you need to claim AITC

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How to claim

Insider tips, common pitfalls, and what successful applicants look like

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Insider Tip

This is an entitlement for any business investing in Atlantic Canada — no application needed beyond your tax return.

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Success Profile

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Evaluation Criteria

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Application Playbook

Step-by-step process, required documents, and expenses

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Application Steps

1 Acquire Qualifying Property Purchase new buildings, machinery, or equipment for use primarily (50%+) in eligible activities (manufacturing, fishing, farming, forestry, mining, energy) in Atlantic Canada (NL, NS, NB, PE) or the Gaspe Peninsula in Quebec.

Required Documents 4

✓ T2 corporate tax return with Investment Tax Credit schedule (T2038)
✓ Proof of eligible property acquisition (invoices)

Eligible Expenses 8

Ineligible Expenses 6

Claim timing

Deadline Notes

Ineligible Organizations

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Funding Stack Strategy

Compatible programs, clawback risk, and combined funding potential

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Compatible Programs

ACOA — Business Development Program (BDP) ACOA — Atlantic Innovation Fund (AIF) Invest Nova Scotia Innovation Rebate NL Innovation and Business Development Fund (IBDF) SR&ED Tax Credits
Combined Funding Potential See your total funding potential

Clawback Risk

Medium Risk
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How AITC Compares

Side-by-side with similar programs

Free
Program Amount Difficulty Payment Deadline
Atlantic Investment Tax Credit (AITC) 10% of cost of Easy Tax Credit Offset Ongoing
NL Innovation and Business Developmen... Up to 50% of eligible costs Moderate Reimbursement Ongoing
Ocean Supercluster Up to $5 million Hard Reimbursement Call-specific — no open...
Atlantic Canada Opportunities Agency ... Up to 50% of capital costs Moderate Reimbursement Ongoing
Business Development Program (BDP) - ... Varies (Repayable Contribution) Moderate Reimbursement Ongoing

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Frequently Asked Questions

Quick answers to the questions founders most often ask about AITC

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Can sole proprietors claim AITC?
No — only incorporated businesses (CCPCs or other taxable corporations) can claim AITC. Sole proprietors must file as a corporation to qualify for the refundable credit.
What's the typical credit amount for a $500k investment?
10% of $500k = $50k. CCPCs get this as a refundable credit; other corporations get it as a non-refundable credit against taxes owed.
When do I claim AITC on my tax return?
File it on your annual T2 corporate tax return with Schedule T2038. No separate application — it's claimed directly on your tax return.
Why do applications get rejected?
Common rejections: property not in Atlantic Canada, property is used (not new), or property acquired from a non-arm's length party.
Can I stack AITC with ACOA grants?
Yes — ACOA Business Development Program (BDP) grants cover operating costs while AITC covers capital investments. Both can be claimed on the same project.

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