Alberta has telegraphed plans for a new provincial tax credit in its upcoming budget to spur development in the ag processing sector.
The province on Tuesday announced plans for what it calls the Alberta Agri-Processing Investment Tax Credit — a 12 per cent, “non-refundable” tax credit for corporations making capital investments in “value-added agri-processing” in Alberta.
The tax credit would be applied against eligible capital expenditures for corporations investing $10 million or more to build, or expand, agri-processing facilities in the province.
Capital investments made as of Tuesday or later may be considered in the calculation of a company’s total tax credit, the province said, adding it will be ready to start accepting applications this spring.
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Eligible qualifying applicants may include corporations that have received funding from other provincial sources, the province said.
“We have heard from Alberta’s producers and processors that we need to do more to help grow our province’s agri-processing industry,” provincial Ag Minister Nate Horner said during an announcement at Harmony Beef at Balzac, just north of Calgary.
The province, he said, “has the fundamentals to take our value-added agriculture industry to new heights and meet the increasing global demand for food.”
With the tax credit, “Alberta has positioned itself to attract more large-scale sector investments than ever before from companies like mine,” Harmony CEO Rich Vesta said in the province’s release. “This is the right way for Alberta’s agri-food sector to support diversification, create jobs, compete and win.” — Glacier FarmMedia Network
