Defined term
Investment tax credit (ITC)
Also: ITC
A credit calculated as a percentage of eligible investment or R&D expenditure.
An investment tax credit reduces tax payable based on a defined base of eligible spending, such as SR&ED expenditures in Canada. ITCs may be refundable or non-refundable and may interact with provincial or state add-ons. The label is jurisdiction-specific; not every R&D incentive is styled as an ITC (for example, some use expenditure credits or payroll offsets).
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Educational definition only. Not tax or legal advice. Confirm current program rules with official guidance and a qualified adviser.