The forest-products company received conditional approval of a $4-million tax credit to restart its strand-board mill in High Prairie and modernize two mills near Slave Lake and High Level.
“Thousands of Albertans rely on the forestry industry to earn a good living for themselves and their families. That’s why we took action to support jobs during a difficult time for this sector. This is a tax credit other provinces have enjoyed for decades and we are proud to be the government that made it available here.”
The High Prairie mill closed in 2008 and reopened earlier this year, employing 170 people. Tolko supports an estimated 1,500 direct and indirect jobs through its three operations across northern Alberta.
“Forestry provides vital jobs in rural and northern Alberta. That’s why I’ve been working with my colleagues in our government to bring more investment and support for our region. I’m proud that our government is working with Tolko to support good jobs in Lesser Slave Lake. And I’m happy to see Tolko making major investments in High Prairie that will help get Albertans back to work.”
The CITC 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.
“With the assistance of programs like the CITC, we can invest in northern Alberta with confidence and continue to be economic drivers for these communities. As a green, renewable, industry we look forward to working with the government in its efforts to support diverse economic and employment opportunities in the communities where we operate.”
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 machine shop, a trailer manufacturer, a metal manufacturing plant and pulp mills.
Through Budget 2018, the CITC has been extended to 2021-22 with an annual budget of $30 million.
- 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 Jan. 15 and closed March 16, 2018. Third intake applications are under review.
- Dates for upcoming application intakes will be shared once finalized.
- Learn more about eligibility criteria and how to apply: alberta.ca/capital-investment-tax-credit.aspx