Alberta Agri-processing Investment Tax Credit

Overview

The Agri-processing Investment Tax Credit (APITC) provides a 12% non-refundable tax credit against eligible capital expenditures for corporations investing $10 million or more to build or expand agri-processing facilities in Alberta.

This program builds on Alberta’s other competitive advantages to make the province the preferred destination for large-scale agri-processing investments.

Eligibility

To be eligible for the APITC program:

Applicants must:

• be incorporated, registered, or continued under Alberta’s Business Corporations Act; and satisfy eligibility conditions set out in the Investing in a Diversified Alberta Economy Act (Part 2.1) and the Agri-processing Investment Tax Credit Regulation

Projects must:

• be physically located in Alberta
• have at least CAD $10 million in new capital expenditures
• be a new value-added agricultural processing facility or a significant expansion of an existing value-added agricultural processing facility
  • demonstrate the eligible capital expenditures are for the purposes of establishing productive capacity (for new facilities) or increasing productive capacity of an existing facility
  • For facility expansions, a baseline report must be completed prior to initiating the expansion and again following the expansion. Successful applicants will be required to provide evidence confirming that the eligible capital expenditure resulted in an increase in productive capacity.
• meet the program’s definition of eligible value-added agricultural activity:
  • The physical transformation or upgrading of any raw or primary agricultural project or any agricultural by-product or waste into a new or upgraded product. This includes further physical transformation or upgrading of agricultural inputs that have previously been transformed or upgraded.

To be eligible, capital expenditures must:

• be directly related to establishing productive capacity (in the case of a new facility) or increasing productive capacity (in the case of a facility expansion)
• be made on or after February 7, 2023 may be considered in the calculation of the tax credit
• not be the result of a transaction between affiliates
• not include any portion of eligible expenditure supported by federal, provincial and/or municipal assistance, including a grant, subsidy, forgivable loan, deduction from tax or investment allowance
• meet conditions set out in the Investing in a Diversified Alberta Economy Act (Part 2.1) and the Agri-processing Investment Tax Credit Regulation

Only certain capital expenditures may be considered as eligible capital expenditures in calculating a tax credit amount for the purposes of the APITC program.

For more information on eligible expenditures can be found at: Agri-processing Investment Tax Credit program guidelines.

Companies looking to invest less than $10 million in Alberta may be eligible for funding through Alberta’s other programs that support the value-added agriculture sector.

How to apply

Applying for the APITC has 2 key stages:

1. Application for conditional approval.
2. Application for the tax credit certificate after the new or expanded facility is operational.

Step 1. Applying for conditional approval

Prepare and submit an application for conditional approval, including a Proposed Investment Plan and engineering estimate (minimum Class 4). If you have questions about the application process, refer to the APITC Program Guidelines or contact [email protected].

The application will be assessed against program eligibility requirements and conditions. Successful applicants will receive a Conditional Approval Letter along with an Approved Investment Plan, with or without modifications.

Step 2. Report progress

Following the conditional approval, applicants must submit a progress report every 180 days until the completion of the project.

Step 3. Applying for the APITC certificate

Upon completion of the project, submit an application for the APITC Tax Credit Certificate including an updated Status Report of the Approved Investment Plan and supporting documentation.

Step 4. Receiving the APITC certificate

The application will be reviewed and evaluated. Based on how closely the corporation met the eligibility requirements and details of the Approved Investment Plan, the minister may grant a full credit, a reduced credit or refuse to issue a tax credit. If the application meets the requirements and the Approved Investment Plan, an APITC certificate will be issued from Alberta Agriculture and Irrigation. This benefit can be claimed against corporate taxes owing in Alberta and can be carried forward for up to 10 years.

Application documents

• APITC Program Guidelines
• APITC - Proposed Investment Plan form

Contact

Email: [email protected]

Application for the APITC program

The purpose of the APITC program is to increase investment in the value-added agricultural processing sector in Alberta. To be eligible under the program, applicants and projects must satisfy eligibility criteria set out in Part 2.1 of the Investing in a Diversified Alberta Economy Act and the Agri-processing Investment Tax Credit Regulation.