Tax credit spurs growth in northern Alberta
Alberta’s north will see new jobs and business expansion with support from the Capital Investment Tax Credit (CITC).
The government is helping companies from across the province grow their businesses through the second intake of the CITC.
The tax credit helps Alberta companies take on new construction projects by returning up to 10 per cent of the costs of new machinery, equipment or buildings to a maximum of $5 million. Businesses can claim the credit once the assets they purchased are in use.
“We’re proud to have created a tax credit that helps businesses in Alberta create good jobs in a variety of sectors – diversifying our economy and helping protect us from the oil price roller-coaster. Other provinces have had tax credits like this for decades. Per capita private-sector investment in Alberta rose to more than twice the national average last year, during the first round of our CITC. We will keep building on that momentum.”
Seven Generations Energy, a liquids-rich natural gas developer, received conditional approval of a $5-million tax credit to build a natural gas processing facility in the Montney Kakwa River area. The project will create about 150 construction jobs and dozens of direct permanent jobs once operational.
“Our new facility will increase our wholly owned processing capacity by about 50 per cent, creating good new jobs. We’ll be using leading technology to turn Alberta natural gas into a variety of world-class energy products to help grow our province’s northern economy.”
The CITC program supports the government’s work to diversify the economy, with 18 businesses from a variety of sectors taking advantage of the second intake.
New projects include building a cannabis manufacturing and processing facility, a skydiving facility, a craft brewery and tap room, a biofuel facility and a glass factory. Expansion projects include upgrades at a precision machining shop, a trailer manufacturer, a metal manufacturing plant and pulp mills.
- Credits from the first and second round of the CITC are expected to support more than 3,000 jobs, with companies investing more than $1.2 billion to build or upgrade their facilities.
- The maximum value of the non-refundable tax credit is $5 million per company.
- The total value of the first two rounds of credits is about $62 million.
- The third CITC intake window opened on Jan. 15 and will run to March 16, 2018.
- To learn more about eligibility criteria and how to apply, visit: alberta.ca/capital-investment-tax-credit.