NDP touts new capital tax credit for businesses

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The NDP government – which is investing money in roads and schools – is also hoping to spur private sector building.

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Economic Development and Trade Minister Deron Bilous announced more details on a new $ 75 million capital investment tax credit for businesses.

Scheduled to start in 2017 and last for two years, the credit is designed to encourage businesses to invest in capital by reimbursing a percentage of business costs, including the purchase of machinery, equipment and buildings.

It will be implemented in the form of a 10% non-refundable tax credit with a maximum value of $ 5 million.

“The purpose of this tax credit is to encourage large-scale investment projects that will support new jobs by fostering increased economic activity,” Bilous said at a press conference at the Calgary-based company Glenmore Fabricators.

Deron Bilous, Minister of Economic Development and Trade, left, visits Glenmore Fabricators in Calgary on Thursday April 21, 2016 by Jason Gillen, Managing Director. Photo by Léa Hennel /Postmedia

The provincial budget released last week suggested that the tax credit would go to businesses in the agriculture, manufacturing, processing, tourism and value-added culture sectors that acquire new properties and businesses. opportunity.

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But Bilous said the program could be expanded beyond these sectors based on feedback before it is implemented.

The tax credit is part of a series of measures to support the Alberta economy, which is in its second year of recession due to the drop in oil prices since 2014.

Jason Gillen, managing director of Glenmore Fabricators, hoped the tax credit would help grow businesses.

He said in the “brutal” economic environment, his steelmaking company had reduced operations in his workshop to four days a week.

“I think anything we can bring to market right now will help,” said Gillen.

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