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Tax credit would help small businesses, investors create jobs

A tax credit for investments in small Alberta businesses would support up to 4,400 new jobs over three years and contribute up to $500 million to the province’s GDP.

As part of the Alberta Jobs Plan, legislation to create the Alberta Investor Tax Credit (AITC) will be introduced during the fall sitting of the legislature. It will offer a 30 per cent tax credit for investments in Alberta small business made between April 14 of this year and December 31, 2019.

“Our small businesses have a bigger economic impact than small businesses anywhere else in Canada. More access to capital for them means more jobs and a more diversified economy for our province. We are introducing this tax credit, restoring training programs for entrepreneurs, cutting the Small Business Tax and protecting our multi-billion dollar tax advantage over other provinces, so Alberta continues to be Canada’s best place to do business.”

Deron Bilous, Minister of Economic Development and Trade

"Our government is taking action to encourage investment in Alberta small businesses. By levelling the playing field with other jurisdictions that have an investor tax credit to support small businesses, we are focusing on creating the economic climate that will support Albertans long into the future.”

Joe Ceci, Minister of Treasury Board and Finance

“Alberta is blessed with large pools of capital, yet before today, policy measures were sorely needed to encourage the flow of this capital into the province’s small businesses. This tax credit puts the onus on investors to make the final decision on risk and efficiency, while keeping their money in Alberta and putting it toward growth-oriented firms. The AITC is an important step toward improving the long-term health of the Alberta economy.”

Justin Smith, Director of Policy, Research and Government Relations, Calgary Chamber of Commerce

“While government must play a key role, it’s up to all Albertans to support our entrepreneurs. That’s what inspired me to open District Ventures, a non-profit accelerator that helps entrepreneurs in the innovative food and health sectors. Encouraging investment in homegrown companies is essential to the success of Alberta’s economy.”

Arlene Dickinson, Chief Executive Officer, District Ventures

“The A100 membership is very excited to see this program being launched to help stimulate investment in Alberta’s innovation sector. The technology sector has worked to have a tax credit system that puts Alberta on a level playing field with other jurisdictions and the energy sector. This program will greatly enhance the opportunities for investors and the funds and companies they are investing in.”

David Edmonds, Industry Chairman, A100

The AITC would have a budget of $90 million over three years and would be provided on a first-come, first-served basis.  

The tax credit would be available for investments in companies that are substantially engaged in proprietary technology research, development or commercialization; interactive digital media development; video post-production; digital animation; or tourism.

The investment criteria were developed through extensive consultation with business and investment leaders across Alberta and are designed to encourage economic diversification.

The registration process for the tax credit will be announced pending the passage of accompanying legislation this fall.


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