Atlantic Investment Tax Credit (AITC)
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Eligibility & Details
What this program funds and who can apply
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
Quick Assessment
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
Everything you need to claim AITC
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 4-document checklist with what each reviewer is actually checking
- 5-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 5-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what the program administrators check
How to claim
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThis is an entitlement for any business investing in Atlantic Canada — no application needed beyond your tax return. Commonly overlooked by businesses that don't know it exists. Fully refundable for CCPCs and partially refundable for others. Stacks with ACOA contributions and provincial incentives.
Success Profile
A fish processing company in Newfoundland investing $2M in new refrigeration and processing equipment, claiming $200,000 in refundable AITC.
Evaluation Criteria
Entitlement-based — no competitive evaluation, no application review, no selection committee. Any taxpayer who acquires qualifying new property for use in eligible activities in Atlantic Canada automatically qualifies. The only review is CRA's standard assessment of the tax return to verify the property meets the statutory definitions.
Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 4
Eligible Expenses 8
- New buildings used primarily (50%+) in eligible activities in Atlantic Canada
- New machinery and equipment for manufacturing and processing
- New fishing vessels and fishing equipment
- New farming equipment and structures
- New forestry and logging machinery
- New mining and extraction equipment
- Prescribed energy generation and conservation property
- New grain storage facilities
Ineligible Expenses 6
- Used or second-hand property of any kind
- Property not primarily (50%+) used in Atlantic Canada or the Gaspe Peninsula
- Property not primarily (50%+) used in an eligible sector
- Property acquired from a non-arm's length party
- Retail or service-sector equipment (unless manufacturing/processing)
- Residential buildings or personal-use property
Claim timing
Ongoing — claimed on annual tax returns with no intake windows. Available for any qualifying property acquired during the tax year. File within 18 months of year the property becomes available for use.
Deadline Notes
No deadline — available continuously. Claim on annual T2 corporate tax return with Investment Tax Credit schedule (T2038). Fully refundable for CCPCs.
Open Application Portal →Ineligible Organizations
- Businesses not operating in Atlantic Canada or the Gaspe Peninsula
- Businesses not engaged in eligible sectors (manufacturing, fishing, farming, forestry, mining, energy, grain storage, peat harvesting)
- Non-taxable entities (charities, Crown corporations) that do not file T2 returns
- Businesses using property primarily (50%+) outside the Atlantic region
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Medium RiskHow AITC Compares
Side-by-side with similar programs
| 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