How much funding can be received?

Funds up to 10% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

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

Atlantic Investment Tax Credit is funded by Canada Revenue Agency (CRA), Government of Canada

What are Atlantic Investment Tax Credit's eligibility criterias?

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.

Atlantic Investment Tax Credit

Last Update: April 5, 2025

Canada

Supports investments in Atlantic Canada's new buildings and equipment

Atlantic Investment Tax Credit at a glance

Eligible Funding

Up to 10% of project cost

Timeline

Continuous Intakes

Financing Type

Tax Credits

Eligible Industries

Agriculture, forestry, fishing and hunting
Mining, quarrying, and oil and gas extraction
Utilities
Manufacturing

Grant Providers

Canada Revenue Agency (CRA)
Government of Canada

Status

Open

Overview of the Atlantic Investment Tax Credit program

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.

Eligible projects & activities

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 criteria of the Atlantic Investment Tax Credit program

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 to the Atlantic Investment Tax Credit program

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

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

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.