Alberta government says new capital investment tax credit will spur job growth
The Alberta government says the $75-million credit will lead to $700 million in investments and "support thousands of direct and indirect jobs."
by Elizabeth Hames
The Alberta government is hoping a new tax credit for capital investments will help spur job growth.
Under the Capital Investment Tax Credit, announced today, companies that invest in equipment, machinery and buildings could receive a 10 per cent non-refundable tax credit of up to $5 million.
The provincial government says the $75-million credit, which will come into effect some time in early 2017, will spur $700-million in investments in the province and “support thousands of direct and indirect jobs.”
“Large-scale capital investments in our province don’t just spur job creation, they also create spin-off economic benefits in communities throughout Alberta,” said Economic Development and Trade Minister Deron Bilous in a statement. “This tax credit will help boost investor confidence and attract the investment Alberta needs now.”
It’s not clear whether the program will apply to companies in all industries, or a select few. In the 2016 budget, the government says the program will support capital investment in “value-added agriculture, manufacturing and processing, tourism infrastructure and culture industries.” However, a news release issued today makes no mention of specific industries, and indicates that details on design, implementation and application of the program will be announced once they are finalized.
Alberta Investor Tax Credit
The announcement of the Capital Investment Tax Credit comes on the heels of the unveiling of the Alberta Investor Tax Credit, which will offer a credit of 30 per cent on investments in small and medium-sized businesses in “non-traditional” industries.