Alberta To Launch New Tax Credits In January

by Mike Godfrey, Tax-news.com, Washington

28 December 2016

Canadian province Alberta will offer a new Investor Tax Credit (AITC) and Capital Investment Tax Credit (CITC) from January 2017.

Legislation to implement the measures received Royal Assent earlier this month.

The CITC will offer a 10 percent non-refundable tax credit of up to CAD5m (USD3.7m) to Alberta companies involved in manufacturing, processing, and tourism infrastructure. It will be provided on a competitive basis to companies making eligible capital investments of CAD1m or more.

It will have four application intake periods, with the first beginning on January 16, 2017, and ending on February 15, 2017. The Government has allocated a budget of CAD70m to the CITC over two years.

The AITC has a budget of CAD90m over three years. It will offer a 30 percent tax credit to investors who provide capital to Alberta small businesses carrying out research and development and those commercializing new technology, new products, or new processes. It will also be applicable to businesses engaged in interactive, digital media development, video post-production, digital animation, or tourism. It will be provided on a first-come, first-served basis.

Intake for the AITC will begin on January 16, 2017, and remain open until the annual budget has been allocated. Investments made as of April 14, 2016, may be retroactively eligible for the AITC.

Together, these tax credits are expected to support 9,000 jobs and add CAD1.2bn to Alberta's economic output.

Deron Bilous, Minister of Economic Development and Trade, said: "Other provinces have enjoyed these types of tax credits for decades. Business leaders across the province helped us create these tax credits. With this legislation, we've made sure Alberta businesses have access to the supports they need to remain competitive and attract the investment they need to diversify and grow."