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 were allocated renounced Canadian exploration expenses.

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

Apprenticeship Job Creation Tax Credit (AJCTC)
The AJCTC is a non-refundable investment tax credit equal to 10% of the eligible salaries and wages payable to eligible apprentices in respect of employment after May 1, 2006. The maximum credit an employer can claim is $2,000 per year for each eligible apprentice.

An "eligible apprentice" is someone who is working in a prescribed trade in the first two years of his or her apprenticeship contract. The contract must be registered with a federal, provincial or territorial government under an apprenticeship program designed to certify or license individuals in the trade.

The amount of the credit is added to the ITC and is available to reduce federal taxes payable for the tax year. Unused amounts can be carried back 3 years and forwarded 20 years. The AJCTC is reported on Form T2038(IND), Investment Tax Credit (Individuals).

Investment tax credit for child care spaces
Employers who carry on a business in Canada, other than a child care services business, can include a non-refundable amount in their investment tax credit calculation for each new child care space they create in a licensed child care facility they operate for the benefit of the children of their employees. This non-refundable amount is equal to whichever is less: $10,000 per child care space created or 25% of the eligible expenditure incurred after March 18, 2007.

For more information on ITCs, see line 412 on your income tax return.

Forms and publications

• Guide T4002, Business and Professional Income
• Form T2038(IND), Investment Tax Credit (Individuals)