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Source verified July 10, 2026
Atlantic Investment Tax Credit
Tax relief for Atlantic investments
Funding available
Up to 10% of project cost
Deadline
Open continuously
Location
Gaspésie–Îles-de-la-Madeleine, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Quebec, Canada
Who can apply
Farming, fishing, logging, manufacturing and processing, storing grain, harvesting peat, and prescribed new energy generation and conservation sectors are covered by the credit.
See full eligibility
Overview
The Atlantic investment tax credit supports taxpayers making eligible investments in qualified property used mainly in Atlantic Canada and the Atlantic Region. It covers new buildings, machinery and equipment, qualified resource property, and certain energy generation, conservation, electrical energy, and steam production uses.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Reduce environmental footprint
Eligible Funding
- Up to 10% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Gaspésie–Îles-de-la-Madeleine
- New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Quebec
Legal structures
- Sole proprietorship
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Farming, fishing, logging, manufacturing and processing.
- Storing grain and harvesting peat.
- Prescribed new energy generation and conservation property.
- Producing or processing electrical energy or steam in a prescribed area.
- Oil and gas and mining activities under the qualified property rules before March 29, 2012.
Documents Needed
- Form T2038(IND), Investment Tax Credit (Individuals)
- Schedule T2SCH31, Investment Tax Credit – Corporations (2023 and later tax years)
Official resources
Application form
Eligibility
Who is eligible?
- Farming, fishing, logging, manufacturing and processing, storing grain, harvesting peat, and prescribed new energy generation and conservation sectors are covered by the credit.
- Property used primarily to produce or process electrical energy or steam in a prescribed area may be covered.
- Oil and gas, and mining activities may qualify only under the phase-out and transitional relief rules for qualified resource property.
Eligible expenses
- New buildings acquired primarily for use in Atlantic Canada and the Atlantic Region.
- New machinery and equipment acquired primarily for use in Atlantic Canada and the Atlantic Region.
- New energy generation and conservation property acquired after March 28, 2012.
- Qualified resource property acquired after March 28, 2012 and before January 1, 2016.
Eligible geographic areas
- Atlantic Canada and Atlantic Region, including the Gaspé Peninsula and the respective offshore regions of Newfoundland and Labrador, Prince Edward Island, Nova Scotia, and New Brunswick.
How to apply
- Use Form T2038(IND) if you want to earn an investment tax credit for the current tax year, claim a carryforward, request a carryback, claim a refund, or report a recapture.
- To calculate your current-year ITC, complete parts A to D of Form T2038(IND) and enter the amount of your credit on line 41200 of your income tax and benefit return.
- To claim a refund of an ITC, complete Part E of Form T2038(IND) and enter your refund amount on line 45400 of your income tax and benefit return.
- File Form T2038(IND) no later than 12 months after the filing due date of your income tax and benefit return for the tax year in which you acquired the ITC-related property or made the ITC-related expenditure; file Schedule T2SCH31 with the T2 Corporation Income Tax Return and attach additional schedules if needed.
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.
Frequently Asked Questions about the Atlantic Investment Tax Credit Program
What is the Atlantic Investment Tax Credit?
The Atlantic investment tax credit supports taxpayers making eligible investments in qualified property used mainly in Atlantic Canada and the Atlantic Region. It covers new buildings, machinery and equipment, qualified resource property, and certain energy generation, conservation, electrical energy, and steam production uses.
How much funding can be received?
Atlantic Investment Tax Credit Funds up to 10% of admissible expenses.
Who is eligible for the Atlantic Investment Tax Credit program?
To be eligible for the Atlantic Investment Tax Credit program, you must:
Investments must be in new buildings, new machinery and equipment used primarily in Atlantic Canada and the Atlantic Region.
Eligible uses include farming, fishing, logging, manufacturing and processing, storing grain, harvesting peat, and prescribed new energy generation and conservation property.
Qualified property used mainly for oil and gas, and mining activities is only eligible if acquired before March 29, 2012.
What expenses are eligible under Atlantic Investment Tax Credit?
Farming, fishing, logging, manufacturing and processing.
Storing grain and harvesting peat.
Prescribed new energy generation and conservation property.
Producing or processing electrical energy or steam in a prescribed area.
Oil and gas and mining activities under the qualified property rules before March 29, 2012.
Who can I contact for more information about the Atlantic Investment Tax Credit?
You can contact Canada Revenue Agency (CRA).
Where is the Atlantic Investment Tax Credit available?
The Atlantic Investment Tax Credit program is available Gaspésie–Îles-de-la-Madeleine, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Quebec.
Is the Atlantic Investment Tax Credit a grant, loan, or tax credit?
Atlantic Investment Tax Credit is a Tax Credits