A corporation or individual business owner can earn Investment Tax Credits by doing designated activities on or with their qualified property in Newfoundland and Labrador, Nova Scotia, Prince Edward Island, New Brunswick, the Gaspé Peninsula and prescribed offshore regions.
Designated activities include:
- Manufacturing or processing goods for sale or lease;
- Prospecting, exploring, extracting and developing minerals;
- Exploring, drilling, operating an oil or gas well and extracting oil or natural gas;
- Processing ore, iron ore, or tar sands to the prime metal stage only;
- Logging;
- Farming or fishing; and
- Canadian field processing.
Qualified property includes the "new prescribed" buildings, machinery or equipment a corporation acquires during the year to use in designated activities.
Particular rules apply to corporations that lease qualified properties. Generally, such property has to be directly related to the corporation's principal business and leased "in the ordinary course of carrying on business in Canada".
For more information see page 64 of the T4012 T2 Corporation - Income Tax Guide).
