What are Investment Tax Credits?
The government of Canada uses the income tax system for social engineering of the economy. Investment tax credits (ITC) are earned by companies or individuals to offset Federal or Provincial taxes payable. For certain taxpayers, and certain costs, the ITC are refundable if no taxes are owing. In recent years, especially since NAFTA, the government has moved away from selective grants to the more universally accessible ITC. SR&ED tax credits are one of the most important sources for Canadian R&D funding and a key tool to generate new products and processes for tomorrow’s economy.
