The process for determining the investment tax credits for the taxation year can be quite complex but generally there is a 4 step process:

1. Determine the eligible expenditures.
2. Decide on an overhead method to calculate the total qualifying expenditures.
3. Calculate the rate of return.
4. Combine the provincial and federal ITCs to calculate the total ITCs earned.

We will talk about each of these steps at a high level and then finish up with a case study.

Financial Preparation:

• Eligible Expenditures
• Overhead Method
• Rate of the Return
• Financial Evidence