The Alberta investor tax credit (AITC) is a 3-year program (began in 2017) that offers a 30% tax credit to investors in Alberta small businesses who are registered with the AITC program.
To be eligible for this tax credit you must:
- Be a resident of Alberta as of December 31
- Have invested in an Eligible Business Corporation (EBC) or a Venture Capital Corporation (VCC) that is “substantially engaged” (at least 50%) in any of the following activities:
- Tourism activities (such as resorts, skiing facilities, amusement and recreation industries)
- Research, development, or commercialization of new technology, new products or new processes
- Development of interactive digital media development and game products or
- Video post-production, visual effects, and digital animation
Note: This tax credit can be applied retroactively to investments made as of April 14, 2016. However, the business you invested in must have registered with the AITC program in 2017, and both you and the business must meet the eligibility criteria for the program. Click here for more information.
While there’s no minimum investment required, the business you invest in might ask for a certain amount, based on their needs. You’ll receive an AITC program-issued tax credit certificate from the business you invest in.
Keep in mind, you must hold the investment you made for at least 5 years from the date the share(s) was issued; otherwise you might have to pay back the tax credit amount to the Canada Revenue Agency (CRA).
Note: Any unused credit amounts can be carried forward for up to 4 years.
Where can I claim this?
Follow these steps in H&R Block’s 2018 tax software:
Before you begin, make sure you’ve told us that you lived in Alberta on December 31, 2018.
- Under the PREPARE tab, click the IN THIS SECTION icon.
- In the Investments box, click the Add This Topic button.
- Click the PENSION PLANS AND INVESTMENTS icon.
- Under the INVESTMENT INCOME heading, select the checkbox labelled Alberta investor tax credit, then click Continue.
- When you arrive at the Alberta investor tax credit page, enter your information into the tax software.