Tax cut benefits small businesses, supports jobs
Small business owners will save an estimated $185 million in 2017 as part of Alberta’s plan to transition the province to a greener, more diversified economy.
Effective Jan. 1, the small business tax rate will be lowered from three to two per cent to help offset the cost of the new carbon levy under the Climate Leadership Plan.
“Small businesses are a vital part of Alberta, contributing roughly one-third to the provincial economy and employing more than half a million people. Reducing the small business tax rate by 33 per cent supports jobs and will help businesses adjust to the new levy as they work to reduce their carbon footprints.”
At two per cent, Alberta will be tied with Saskatchewan for the second-lowest provincial small business rate in Canada. With no provincial sales tax, no payroll tax and no health-care premiums, Alberta small business owners pay less in overall taxes compared to other provinces.
Supporting Alberta business is one of the four pillars of the Alberta Jobs Plan, as outlined in Budget 2016. The Alberta government is also supporting businesses with new tax credits valued at $160 million to encourage access to capital.
The Government of Alberta is committed to helping businesses and communities reduce their greenhouse gas emissions with its Climate Leadership Plan. These programs include support for new technology, green infrastructure, energy efficiency and renewable energy. Visit the Climate Leadership Plan website for more information on these and other initiatives.