Enriched Investment Tax Credit ### 📋 Eligible Entities - Canadian-controlled private corporations (CCPCs) operating in Canada - Public corporations with Canadian operations - Partnerships (with corporate partners) - Sole proprietors operating as incorporated entities - Businesses must be actively engaged in manufacturing and processing activities - Operations must be located in Canada (provincial jurisdiction applies) Strategic Sector Requirements: - Bioscience - Aerospace and defence - Renewable energy - Other designated strategic sectors (verify with provincial ministry) ### 💰 Funding Details - Tax Credit Rate: 25% of eligible equipment costs - Structure: Non-repayable provincial corporate income tax credit - Application Method: Claimed against provincial corporate tax liability - Timing: Credits applied in the taxation year equipment is acquired and becomes operational - No matching requirement: 100% government-funded tax credit (no cost-sharing needed) - Carryforward provisions: Unused credits may be carried forward to subsequent tax years (subject to provincial rules) - Cap: Verify annual/per-project maximums with provincial tax authority ### 🛠️ Approved Expenses - Manufacturing equipment purchases (new or used, depending on provincial rules) - Processing equipment directly used in manufacturing operations - Machinery and apparatus for production activities - Equipment installation costs (if integral to functionality) - Equipment retrofitting for efficiency improvements - Ancillary equipment supporting manufacturing/processing lines Exclusions typically include: - Buildings and land - Leasehold improvements - Software and intangible assets - Used equipment (in some provinces) - Equipment for non-manufacturing purposes ### ⚠️ Conditions & Milestones - Strategic Sector Confirmation: Business must operate in an approved sector; pre-qualification recommended - Equipment Certification: Equipment must meet "qualified manufacturing and processing" criteria - Canadian Content: Equipment must be acquired for use in Canada - Operational Status: Equipment must be in active use for manufacturing/processing - Documentation Requirements: Maintain receipts, invoices, and equipment