Early in November, the Alberta Government introduced the Diversified Alberta Economy Act (Bill 30) which is intended to drive innovation, diversification and job creation in Alberta (Government announcement here). This initiative created both the Capital Investment Tax Credit (CITC) which is aimed at attracting large capital investments; and the Alberta Investor Tax Credit (AITC) aimed at bringing Alberta investors and small businesses together.
The CITC offers a 10 per cent, non-refundable tax credit of up to $5 million to Alberta companies involved in manufacturing and processing infrastructure, as well as tourism. It is to have a budget of $70 million over two years and be provided on a competitive basis to companies making eligible capital investments of $1 million or more. The CITC will begin accepting applications for the first intake starting January 16, 2017. More information on the CITC can be found here.
The AITC (factsheet here) is to have a budget of $90 million over three years and will be available for investors who provide capital to Alberta small businesses doing research, development or commercialization of new technology, new products or processes. It is also applicable to businesses engaged in interactive digital media development, video post-production digital animation or tourism. Like the CITC, the AITC will be available from January 16, 2017. However, investments made since April 14, 2016 may be retroactively eligible. More information on the AITC can be found here.
For more information, contact William Murphy.