Alberta Agri-Processing Investment Tax Credit

Overview

The Agri-Processing Investment Tax Credit (APITC) provides a 12% non-refundable tax credit when corporations invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. Up to $175 million in tax credits is available for each project. Corporations have 10 years to claim the tax credit against their provincial income tax.

This tax credit is making the province a preferred destination for large scale projects, building on the competitive advantages and reasons why agri-processing companies invest in Alberta.

Eligibility

Eligible corporations

Corporations may apply to the APITC program if they:

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

Eligible projects and expenses

A project may be considered for the APITC program if:

• at least CAD $10 million is invested in new capital expenditures such as land, facility construction and processing equipment
• a new agricultural processing facility is built and operationalized or an existing facility is expanded and production capacity is increased
• the new build or expansion creates capacity to produce a new or upgraded product by physically transforming or upgrading:
  • any raw or primary agricultural product
  • any agricultural by-product or waste
  • previously transformed or upgraded product
• the facility is physically located within Alberta
• capital expenses are made on or after February 7, 2023 and meet the conditions in the Investing in a Diversified Alberta Economy Act (Part 2.1)

Ineligible projects and expense

New build and expansion projects in value-added agricultural processing facilities are not eligible for the APITC when capital expenses are only for product cleaning, bagging, handling, storing or sorting. 

Primary agriculture projects are not eligible for the APITC program. This includes:

• building or expanding greenhouses and vertical farms
• growing or harvesting crops and livestock

How to apply

Step 1. Apply for conditional approval

Get ready to apply online by:

• reviewing the APITC guidelines
• completing the Proposed Investment Plan form
• getting an engineering estimate prepared by a 3rd party (minimum Class 4)

Apply for conditional approval online and submit the required documents using the online form below.

Step 2. Report progress

After receiving conditional approval, the APITC program will advise applicants how to submit a progress report every 180 days until the project is complete.

Step 3. Apply for the certificate

When the project is complete and the new facility or expansion is operational, applicants may apply for the APITC Certificate by contacting the program and providing:

• a completed APITC Certificate Application Form
• a compliance report on capital expenditures
• a baseline and a follow-up report to show an expansion project increased productivity (not required for new build projects)
• a real estate appraisal, if needed

Based on this information and eligibility requirements, applicants may receive full, reduced or no tax credits.

After receiving the certificate

When corporations receive the APITC Certificate for a full or reduced tax credit, they have 10 years to claim it against their Alberta corporate taxes. The maximum amount of the APITC that can be claimed in the first 3 years is:

• up to 20% in the first year
• up to 30% in the second year
• up to 50% in the third year

Online form

Contact

Connect with the Agri-Processing Investment Tax Credit program:

Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays) 
Toll free: 310-FARM (3276) (in Alberta)
Phone: 403-742-7901
Email: [email protected]