The Capital Investment Tax Credit (CITC) is a refundable corporate tax credit that can be claimed for capital costs directly related to acquiring qualified property for use in Nova Scotia as part of an approved project.

The CITC is aligned, but not harmonized, with the federal government's Atlantic Investment Tax Credit. With certain exceptions, the tax credit is available to eligible corporations in the manufacturing, processing, fishing, farming, logging, storing grain, and harvesting peat sectors.

Please see the CITC Guidelines (PDF) for more information on the tax credit amount, eligibility requirements, and the application process.

Tax Credit Amount for property acquired before 1 October 2022

The tax credit is 15% of the capital cost of acquired qualified property minus related government assistance acquired before 1 October 2022. The maximum tax credit available for each approved project is $30 million across the duration of the project.

Tax Credit Amount for property acquired on or after 1 October 2022

The tax credit is 25% of the capital cost of acquired qualified property minus related government assistance acquired on or after 1 October 2022. The maximum tax credit available for each approved project is $100 million across the duration of the project.

How to Apply

1. Submit a mandatory Part A application to apply for an Eligibility Certificate. Part A applications are used to determine the eligibility of your corporation and project for the CITC. Corporations are encouraged to submit this mandatory application before acquiring qualified property as part of the project.
   
   
   • Part A Application Form


2. Submit a mandatory Part B application to apply for a Tax Credit Certificate. Part B applications can be submitted once you have an Eligibility Certificate (i.e. Part A approval) and have acquired qualified property as part of the approved project. Multiple Part B applications can be submitted if an approved project spans across multiple tax years. Part B applications must be submitted no later than 18 months following the end of the tax year in which the qualified property was acquired by the corporation.
   
   
   • Part B Application Form

All application packages must be submitted via email to the program administrator. Paper applications will not be accepted.

Once you receive your Tax Credit Certificate, you can claim the tax credit on your corporation's T2 corporate tax return with the Canada Revenue Agency.

Related Legislation and Regulations

• Section 49 of the Income Tax Act (PDF)
• Capital Investment Tax Credit Regulations
• Maximum Amount of Capital Investment Tax Credits for Approved Projects Regulations