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Atlantic Investment Tax Credit
Tax credit for eligible Atlantic investments
Last Update: May 28, 2026
Funding available
Up to 10% of project cost
Timeline
- Open continuously
Location
Gaspésie–Îles-de-la-Madeleine, New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island, Canada
Overview
The Atlantic investment tax credit provides a 10% tax credit for certain investments in eligible property used in Atlantic Canada and the Atlantic Region. It applies to activities such as farming, fishing, logging, manufacturing and processing, storing grain, harvesting peat, and certain energy generation or processing 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
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Agriculture, forestry, fishing and hunting
- Mining, quarrying, and oil and gas extraction
- Utilities
- Manufacturing
Location
- Gaspésie–Îles-de-la-Madeleine
- New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island
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
- 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.
Documents Needed
- Form T2038(IND), Investment Tax Credit (Individuals)
- Schedule T2SCH31, Investment Tax Credit – Corporations (2017 and later tax years)
- Information Circular IC78-4, Investment Tax Credit Rates
- Special Release IC78-4R3SR, Investment Tax Credit Rates
Eligibility
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
- Atlantic Canada
- The Gaspé Peninsula, Quebec
- Newfoundland and Labrador
- Prince Edward Island
- Nova Scotia
- New Brunswick
- Respective offshore regions of these provinces
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
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?
The Atlantic investment tax credit provides a 10% tax credit for certain investments in eligible property used in Atlantic Canada and the Atlantic Region. It applies to activities such as farming, fishing, logging, manufacturing and processing, storing grain, harvesting peat, and certain energy generation or processing 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:
The company must invest in new buildings, machinery, and equipment primarily for use in the Atlantic Canada and Atlantic Region.
The investment must be related to specified sectors such as farming, fishing, logging, manufacturing and processing, storing grain, harvesting peat, or prescribed new energy generation and conservation.
Investments must comply with specified percentage criteria for qualified properties as defined by the Income Tax Act regulations.
What expenses are eligible under Atlantic Investment Tax Credit?
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.
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.
Is the Atlantic Investment Tax Credit a grant, loan, or tax credit?
Atlantic Investment Tax Credit is a Tax Credits