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| Investment Tax Credit for Child Care Spaces (ITC) |
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Investment Tax Credit for Child Care Spaces (ITC)
Announced in the 2007 budget last spring. The budget introduced an investment tax credit for child care spaces to encourage business to create licensed child care spaces for children of their employees. The tax credit is equal to 25% of eligible expenditures to a maximum credit of $10,000 per child care space created. This is available for expenditures on or after March 19, 2007.
To qualify the taxpayer must carry on business in Canada and the provision of child care spaces must be ancillary to one or more of the taxpayer's businesses that did not include the provision for such spaces.
- Eligible expenditures will include the cost of depreciable property (other than specified property) and the amount of specified start-up costs, acquired or incurred solely for the purpose of the creation of new child care spaces at a licensed child care facility. Eligible depreciable property will include the cost or incremental cost of the building or portion of the building in which the child care facility is located, as well as the cost of furniture, appliances, computer equipment, audio-visual equipment, playground structures and playground equipment.
The specified start up costs will include the initial start-up costs such as landscaping costs for the playground, architect's fees, cost of initial regulatory inspections, initial licensing fees, building permit costs and cost to acquire children's educational material.
For more information visit:
www.cra-arc.gc.ca/agency/budget/2007/spaces-e.html
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