Alberta Bill 30, to enact certain tax credits, received first reading on November 8, 2016.
The bill is considered to be substantively enacted for purposes of IFRS and Accounting Standards for Private Enterprise as of November 8, 2016, the date it received first reading in the Alberta legislature (as Alberta has a majority government).
The bill contains legislation to implement the Capital Investment Tax Credit (CITC) and the Alberta Investor Tax Credit (AITC) as announced in the Alberta's 2016 budget.
The CITC is a new investment tax credit for Alberta corporations that make investments in eligible capital assets such as buildings, equipment and machinery. According to an Alberta press release, the CITC offers a 10% non-refundable tax credit of up to $5 million to Alberta companies involved in manufacturing, processing and tourism infrastructure. It also states that the CITC would have a budget of $70 million over two years and be provided on a competitive application basis to companies making eligible capital investments of $1 million or more.
The Alberta press release also states that the AITC is available for investments by corporations and individuals in Alberta small businesses that are engaged substantially in proprietary technology research, development or commercialization, interactive digital media development, video post-production, digital animation or tourism. The AITC is a 30% tax credit to investors for investments made on or after April 14, 2016. The AITC has a budget of $90 million over three years and is available on an application basis.
Alberta will announce the application process for both credits once the legislation has been passed this fall, with the first intake expected to begin in January 2017.
For more information, contact your KPMG adviser.
Information is current to November 15, 2016. The information contained in this publication is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act upon such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's National Tax Centre at 416.777.8500