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Atlantic Investment Tax Credit - Canada

Atlantic Investment Tax Credit

Last Update: July 22, 2025
Canada
Supports investments in Atlantic Canada's new buildings and equipment

At a glance

Eligible Funding
  • Up to 10% of project cost
Timeline
  • Unspecified
Financing Type
Tax Credits
Eligible Industries
  • Agriculture, forestry, fishing and hunting
  • Mining, quarrying, and oil and gas extraction
  • Utilities
  • Manufacturing
Funds Providers
Unspecified
Program status
Open

Overview

The Atlantic Investment Tax Credit offers a specified percentage, up to 10%, for investments in new buildings and equipment used primarily in sectors such as farming, fishing, and manufacturing in the Atlantic Region. This program supports economic growth by providing financial aid for eligible activities including storing grain, harvesting peat, and new energy generation.

Financing terms and conditions

  • Refundable credits are calculated for eligible investments by multiplying the total investments and expenditures in newly acquired assets by a specified percentage.
  • Investments in newly acquired qualified property used mainly in Atlantic Canada and the Atlantic Region are calculated using a specified percentage of 10%.
  • For qualified resource property acquired after March 28, 2012, and before 2014, a specified percentage of 10% applies.
  • For acquisitions between 2014 and 2015, the specified percentage decreases to 5% if certain conditions are not met.
  • For subsequent years post-2015, the specified percentage is 0% except where transitional relief applies.
  • A transitional relief rate of 10% is provided for certain projects meeting specific criteria, acquired after 2013 and before 2017.

Activities funded

  • Construction of new buildings for farming, fishing, logging, manufacturing, and processing.
  • Investment in new machinery and equipment used in the Atlantic Canada region.
  • Projects focused on storing grain.
  • Peat harvesting operations.
  • Development of prescribed new energy generation and conservation property.
  • Production or processing of electrical energy or steam in designated areas.
  • Investments in the oil and gas sector qualifying under specific conditions by certain dates.
  • Mining activities qualifying under the transitional rules.
Examples of admissible projects:
$ 120,000
Construction of a new wind energy generation facility
$ 95,000
Optimization of a lobster processing plant
$ 70,000
Development of a modern grain storage facility
$ 85,000
Upgrade to automated fish processing equipment
$ 50,000
Installation of peat harvesting technology

Eligibility

  • Investments must be made in new buildings, new machinery, and equipment that is used primarily within the Atlantic Canada and Atlantic Region.
  • Eligible sectors include farming, fishing, logging, manufacturing and processing, storing grain, harvesting peat, and prescribed new energy generation and conservation property.
  • Eligible activities include producing or processing electrical energy or steam in certain areas.
  • Investments must meet specified percentages to calculate refundable credits, based on the acquisition date and usage mainly in the Atlantic region.
  • Qualified property must be acquired by the taxpayer before March 29, 2012, for oil and gas, and mining activities to be eligible.
  • A transitional relief rate may apply to qualified resource property acquired under certain conditions after 2013 and before 2017.

Who is eligible?

  • Farming companies
  • Fishing companies
  • Logging companies
  • Manufacturing and processing companies
  • Companies involved in storing grain
  • Companies harvesting peat
  • Companies operating prescribed new energy generation and conservation property
  • Companies producing or processing electrical energy or steam in certain areas
  • Oil and gas sector companies (subject to phase-out conditions)
  • Mining sector companies (subject to phase-out conditions)

Eligible expenses

  • New buildings acquired primarily for use in the Atlantic Canada and Atlantic Region.
  • New machinery and equipment acquired primarily for use in sectors such as farming, fishing, logging, manufacturing and processing, storing grain, or harvesting peat.
  • Prescribed new energy generation and conservation property acquired after March 28, 2012, for producing or processing electrical energy or steam in prescribed areas.
  • Newly acquired qualified resource property used mainly in Atlantic Canada for oil and gas, and mining activities, if acquired between March 28, 2012, and January 1, 2016.

Eligible geographic areas

  • The Gaspé Peninsula, Quebec
  • Newfoundland and Labrador
  • Prince Edward Island
  • Nova Scotia
  • New Brunswick
  • Respective offshore regions of these provinces

How to apply

1

Verify investment eligibility

  • Ensure investments are in qualified property for eligible sectors, including farming, fishing, and manufacturing
  • Verify if the property is for use in Atlantic Canada and Atlantic Region
2

Calculate investment credit

  • Calculate the investment using the specified percentage for qualified property
  • Use a 10% rate for new assets acquired mainly for use in Atlantic Canada
3

Prepare application documents

  • Complete Form T2038(IND) for individuals or Schedule T2SCH31 for corporations
  • Ensure the correct documentation is prepared for submission

Additional information

  • The Atlantic investment tax credit uses specified percentages to calculate credit based on total investments in newly acquired assets.
  • Investments in qualified property for general activities in Atlantic Canada are calculated using a 10% specified percentage.
  • A transitional relief rate is available for resource property acquired under certain conditions between 2013 and 2017.
  • Qualified resource property acquired for use in oil and gas, and mining will be phased out, with percentages decreasing to 0% after 2015.
  • The terms of the Atlantic investment tax credit are influenced by the Income Tax Act and associated regulations.
Apply to this program

Frequently Asked Questions about the Atlantic Investment Tax Credit Program

Here are answers to the most common questions about the Atlantic Investment Tax Credit. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.

What is the Atlantic Investment Tax Credit?

How much funding can be received?

What is the deadline to apply?

Is the Atlantic Investment Tax Credit a grant, loan, or tax credit?

Who are the financial supporters of the Atlantic Investment Tax Credit?

Who is eligible for the Atlantic Investment Tax Credit program?

Who can I contact for more information about the Atlantic Investment Tax Credit?

Where is the Atlantic Investment Tax Credit available?

Apply to this program

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