New this year, the Alberta investor tax credit (AITC) is a 3-year program that will offer a 30% tax credit to investors who have invested in Alberta small businesses involved in:
- 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 by the AITC program, the business you invest in might ask for investments over a certain amount, based on their needs.
A maximum of $60,000 in credit amount can be used on your tax return per year and any unused credit amounts can be carried forward for up to 4 years (up to a maximum of $300,000). The business you invested in will send you a tax credit certificate, issued by the AITC program, for your investment.
Am I eligible?
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 activities listed above
Note: You must hold the investment you made in an EBC or VCC for at least 5 years from the date the share was issued; otherwise you might have to pay back the tax credit amount to the Canada Revenue Agency (CRA).
The AITC has a yearly budget and is available to investors on a first-come first serve basis. You’ll need to apply through the program’s online application portal. Once the annual budget has been used up, the online portal will close and you’ll need to wait until the budget for the next year is released to apply.
Where can I claim this?
Follow these steps in H&R Block’s 2017 tax software:
Before you begin, make sure you’ve told us that you lived in Alberta on December 31, 2017.
- Under the PREPARE tab, click the IN THIS SECTION icon.
- Under the Investments (shares, securities, property, tax shelters, etc.) you bought or sold in 2017 section, click the Add This button.
- Click the PENSION PLANS AND INVESTMENTS icon. You'll find yourself here:
- 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.