In Short
Jewellers in Atlantic Canada can claim a 10% federal tax credit on new laser welders and manufacturing equipment. If you position your business as a manufacturer (not just a repair shop), you can cut costs on high-end equipment and reduce your tax bill. The claim process is straightforward, and with the right setup, you could be putting thousands back into your business. Keep reading to see how you can qualify.
Quick Reference Checklist
To claim the AITC, check if your business meets these conditions:
◽️ Your jewellery business operates in Newfoundland & Labrador, Nova Scotia, PEI, New Brunswick, or the Gaspé Peninsula (Quebec).
◽️ You own and operate jewellery production equipment (e.g. polishing stations, laser welders, engraving machines, etc.)
◽️ The equipment is used more than 50% of the time for jewellery creation, not just repairs.
◽️ Your business is registered as a manufacturer (NAICS 339910).
◽️ You can file your T2 corporate tax return on time, including Schedule T2SCH31.
What is the AITC?
The Atlantic Investment Tax Credit (AITC) is a federal incentive designed to help businesses in manufacturing and processing by offsetting the cost of new equipment purchases. While the program is often used by large industrial manufacturers, many jewellers qualify, too.
A jeweller with e.g. a laser welder, an engraving machine, or a casting furnace that’s primarily used for making custom jewellery (not just repairs) can claim 10% of the purchase price as a tax credit.
Key Benefits
✔ 10% Tax Credit – Reduce your tax bill or carry credits forward.
✔ Ideal for Custom Jewellers – If your business specializes in custom engagement rings, bespoke jewellery, or made-to-order pieces, this credit can significantly lower your costs.
✔ Claim on New Equipment – Laser welders, engraving machines, casting furnaces, polishing units and other machines qualify.
✔ Stackable with Other Deductions – Combine AITC with provincial programs like the Manufacturing and Processing Investment Tax Credit (MPITC) in NL or the C3i program in QC for even greater savings.
✔ No Minimum Investment – Whether you invest $10,000 or $100,000, you can claim the credit.
✔ Carry Forward Unused Credits – Apply to future years if you don’t owe taxes now.
✔ Works with Lease-to-Own Financing – Lease-to-own and financed equipment purchases are eligible, as long as ownership transfers and the asset is used for manufacturing.
How Jewellers Can Qualify as Manufacturers
To qualify, you must show that your business is engaged in manufacturing, not just jewellery repairs.
- Use the correct NAICS Code – If your business is classified under NAICS 339910 (Jewellery and Silverware Manufacturing), you’re eligible. If you are filed under Jewellery Retail (NAICS 448310), you will likely be denied.
- Prove Custom Jewellery Production – Your business must regularly cast, fabricate, engrave, or assemble new jewellery from raw materials. If most of your work is simple repairs (resizing, stone setting), you may not qualify. However, if you create custom wedding rings, engagement sets, or unique handcrafted jewellery, you have a strong case.
- Show That Equipment is Used for Custom Work – E.g if you're looking to claim your new laser welder, it should be primarily used to create new, custom pieces, not just repair old ones.
- Keep Documentation – Maintain records of metal purchases, casting/melting logs, work orders, and sales of custom pieces to prove manufacturing activity.
- Consult a Tax Professional – If your business is a mix of retail, repair, and manufacturing, a professional can help optimize your classification.
Claiming the AITC: Step by Step
Step 1: Gather Required Documentation
- The Investment Tax Credit form – Schedule 31 Code 2301 T2SCH31 (click to download).
- Purchase invoice or Financing agreement (showing the cost and vendor details).
- Installation certificate (proving the equipment is in use).
- Proof that the asset is primarily used for custom jewellery production (e.g. usage letter).
Step 2: Complete Your T2 Tax Return
- Include Schedule 31 – Investment Tax Credit form.
- Enter eligible equipment details (purchase price, date acquired).
- Calculate 10% of the capital cost as your AITC.
Step 3: Submit your Claim
- Submit Schedule 31 alongside your T2 corporate tax return.
- If you don’t owe taxes this year, carry it back 3 years or forward 20 years.
- Work with a tax professional to ensure all forms are correctly submitted.
Avoid these common mistakes
Filing Under the Wrong NAICS Code: If you’re classified as Jewellery Retail (NAICS 448310), CRA may deny your claim. File under Jewellery Manufacturing (NAICS 339910).
Buying Used Equipment: Only brand-new purchases qualify.
Not Keeping Proof of Manufacturing Activity: If CRA audits, you need proof of custom jewellery production.
Missing the Filing Deadline: The claim must be submitted within 12 months of your T2 deadline.
Incorrect lease structure: Standard rentals don’t count; you need a financing or lease-to-own agreement that treats the equipment as your asset.
What Happens After Filing?
Once submitted, the government will review your claim. If approved, you’ll receive either a reduced corporate tax bill or a direct refund if you are a Canadian-Controlled Private Corporation (CCPC) with no federal tax owing. Processing time typically takes 6-8 weeks after submission. We recommend staying updated on potential changes to tax credit rates and eligibility rules to maximize future savings.
Final Thoughts
If you’re a jeweller in Atlantic Canada, the AITC can save you thousands on equipment investments. Even if you mostly do repairs, reclassifying your business as a custom jewellery manufacturer (if eligible) could unlock significant tax savings.
Why Choose Stygvir Laser Systems for Your AITC Claim?
Investing in new equipment is a big move – but with Stygvir, you don’t just upgrade your production, you maximize your AITC tax credit with zero hassle.
✓ Guaranteed AITC-Eligible Equipment
Our laser systems are manufacturing & processing assets under CCA Class 53, the exact category the AITC was designed for. That means no eligibility doubts, no wasted claims, just 10% back.
✓ We Handle the Paperwork
Filing for AITC is simple, if you have the right documentation. We provide:
- Installation certificate with "available for use" dates.
- Detailed equipment specifications matching CCA Class 53.
- Delivery records proving purchase and first-use dates.
- Full technical documentation in CRA-friendly format.
With these, your claim process is clear, fast, and stress-free.
✓ Support Beyond the Sale
We’re not just another vendor, we’re helping customers grow. Whether you need technical support to keep your laser running smoothly or business guidance to maximize your AITC claim, we’ve got your back.
- Expert tech support for seamless operation.
- CRA-compliant documentation for stress-free filing.
- Claim guidance so you don't leave money on the table.
With Stygvir, you get world-class equipment, expert support, and a partner invested in your success – on both the technical and financial side.
Not yet a Stygvir customer?
Not problem! We've written this guide for everyone's benefit. If you do need help selecting advanced manufacturing equipment that goes the extra mile, feel free to reach out. We’re here to help you make the most of your investments.
