Status: Bill 7 received royal assent June 28, 2019. Bill 29 received royal assent on December 5, 2019
Ministry responsible: Municipal Affairs

Overview

New legislation will help municipalities attract investment and development by giving them the power to offer stronger property tax incentives to business and industry:

These multi-year tax incentives give municipalities the tools they need to encourage economic development by reducing the burden of starting a new business, and providing more incentives to redevelop brownfield properties and revitalize communities.

Key changes

Bill 7 will:

  • allow municipalities to decide if, and how, to implement the tax incentives by passing a single bylaw that will:
    • offer incentives to reduce, exempt or defer the collection of property taxes for non-residential properties for up to 15 years, with the option for renewal
    • establish an eligibility criteria and application process to streamline tax incentive offers, instead of requiring a separate council resolution or bylaw for each property

Bill 29 will:

  • allow municipalities to pass a bylaw enabling them to reduce or eliminate property taxes for up to 15 years on machinery and equipment

These changes make Alberta a highly attractive destination for investment by providing one of the longest municipal tax incentive timelines in North America:

  • Saskatchewan allows property tax incentives for up to 5 years
  • B.C. allows them for up to 10 years
  • Louisiana offers 5-year incentives with an option to renew for an additional 5 years
  • Texas offers local tax incentives for up to 10 years

Next steps

  • Bill 7 came into effect June 28, 2019
  • Bill 29 came into effect December 5, 2019

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