Investment tax credit

The investment tax credit (ITC) lets you subtract, from the taxes you owe, part of the cost of some types of property you acquired or expenditures you incurred.

You may be able to claim this tax credit if you bought qualifying property, incurred qualified expenditures, or received renounced Canadian exploration expenses.

You may also be able to claim the credit if you have unused ITCs from earlier years.

Note
The 10 year carry-forward period, in respect of investment tax credits earned for Scientific Research and Experimental Development (SR&ED), in taxation years that end after 2005, is extended to 20 years.

Apprenticeship Job Creation Tax Credit (AJCTC)
If you employed an eligible apprentice in your business, you are eligible for a non-refundable tax credit equal to 10% of the eligible salary and wages paid to the apprentice after May 1, 2006 (maximum $2,000 per year). The amount of the credit is added to the ITC and is available to reduce federal taxes payable for the taxation year. Unused amounts can be carried back 3 years and forwarded 20 years. The AJCTC is reported on Form T2038 (IND). For more information about ITCs, see Form T2038 (IND), Investment Tax Credit (Individuals).

For more details on ITC's, review Line 412 - Investment tax credit.

Forms and publications

• Business and Professional Income guide (T4002)

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