Capital Investment Tax Credit (CITC)

Who is eligible?

• Manufacturing companies engaged in the creation or assembly of goods
• Processing companies involved in physical or chemical transformation of goods
• Businesses providing or operating tourism infrastructure, such as resorts, ski facilities, and amusement or recreation centers
• Companies operating recreational vehicle (RV) parks and campgrounds
• Organizations running recreational and vacation camps, including hunting and fishing camps

Who is not eligible

• Companies engaged in farming or fishing activities.
• Businesses involved in logging operations.
• Companies primarily operating in construction.
• Businesses operating oil or gas wells or extracting petroleum or natural gas.
• Companies engaged in energy generation or producing/processing electrical energy or steam for sale.

Eligible expenses

• Purchase of machinery and equipment.
• Acquisition of buildings for eligible capital investment projects.
• Related soft costs such as engineering and installation expenses directly tied to eligible property.

Eligible geographic areas

• Alberta

• Size of investment: Larger investments are considered to have a greater economic impact and contribute more to sustainable economic growth.
• Timeliness of investment: Quicker investments support faster achievement of economic development objectives.
• Employment impacts: The number of jobs created in Alberta, both temporary and permanent, is assessed.
• Inclusion of under-represented people or groups: Existence of corporate policies or initiatives aimed at improving inclusion for under-represented populations.
• Modernization or productivity improvements: Projects that enhance productivity, competitiveness, and value of products and services are valued.

• Step 1: Creating a User ProfileAccess the online application portal via the CITC program website during the intake period.
• Create a user account by selecting a secure login name and password.
• Gain portal access to live application forms and templates.
• Step 2: Applying for Conditional ApprovalComplete and submit the online Application Form for Conditional Approval.
• Fill out and submit a Proposed Investment Plan Form and an Economic Impact Assessment Form through the portal.
• Attach supporting documentation related to the investment and assessment.
• Wait for evaluation and competitive assessment by CITC program staff.
• Receive a Conditional Approval Letter and an Approved Investment Plan if successful. This letter will specify the eligible property and maximum tax credit available.
• Step 3: Reporting on ProgressSubmit a progress report every 180 days from the date of receiving the Conditional Approval Letter until the investment is completed.
• Use designated forms available via the online portal.
• Include the status of eligible qualified properties as outlined in the Approved Investment Plan.
• Submit supporting documents as proof of progress if required, such as planning permission, receipts, etc.
• Step 4: Applying for the Tax Credit CertificateOnce the eligible property is purchased and available for use, submit the Application Form for Tax Credit Certificate via the online portal.
• Provide an updated Status Report of the Approved Investment Plan and an updated Economic Impact Assessment.
• Declare the intention to hold the eligible property in Alberta for at least one year from certificate issuance.
• Step 5: Receiving the Tax CreditThe Minister evaluates the completion and conformity of the investment with the Approved Investment Plan and Economic Impact Assessment.
• Receive the Tax Credit Certificate if requirements are met.
• Apply the tax credit against the corporation's income taxes as per program rules.
• If the decision is disputed, submit a written request for reconsideration within 30 days of notification.

• The Minister may grant extensions for deadlines, with or without conditions, even after the original time limit has expired.
• Investments receiving credits must acknowledge Government of Alberta support in any public announcements, coordinated with the government.
• Information submitted may be disclosed as per the Freedom of Information and Privacy (FOIP) Act, except where legal exceptions apply.
• Corporations must report significant changes such as amalgamations, dissolutions, or winding-ups within 30 days.