An investment tax credit (ITC)of $100 in comparison to CCA expense of $100 provides:

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The investment tax credit (ITC) provides a dollar-for-dollar reduction in taxes owed, whereas the Capital Cost Allowance (CCA) provides a tax deduction based on the cost of the asset, spread out over several years. Therefore, an ITC of $100 would provide greater tax shield benefits than a CCA expense of $100, since it reduces the taxpayer's taxes owed by the full amount of the credit.

An Investment Tax Credit (ITC)of $100 in Comparison to CCA