Tax credit creates jobs, diversifies economy
Alberta will see thousands of new jobs and more than one billion dollars invested into diversifying the economy as a result of the province’s Capital Investment Tax Credit.
The Alberta government is helping companies from across the province grow their businesses through the second intake of the Capital Investment Tax Credit (CITC).
“Per capita private-sector investment in Alberta rose to more than twice the national average last year, during the first round of our CITC. Those investments create good jobs in a variety of sectors – diversifying our economy and protecting us from the oil price roller-coaster. That’s why we are building on that momentum with a second round of credits for businesses upgrading or expanding their facilities across the province.”
The CITC helps Alberta companies take on new construction projects, by returning up to 10 per cent of the costs of new machinery, equipment or buildings. CITC recipients claim the credit after the capital they purchased is in use.
Aurora Cannabis Enterprises’ Aurora Sky project is one of the CITC’s second-round recipients. They purchased specialized equipment to build a state-of-the-art cannabis manufacturing and processing facility at the Edmonton International Airport. The facility will be the largest of its kind in the world and, once operational, will run three shifts employing 330 people.
“Our Aurora Sky facility will be larger in capacity and more advanced than anything that’s ever been built or operated before in the cannabis sector. With support from the CITC, we are using an unprecedented level of new technology and automation. This will be the most sophisticated and efficient cannabis production facility in the world, employing hundreds of people, from entry-level jobs to highly skilled technical positions requiring advanced science degrees, and we’re proud to have established this flagship site in Aurora’s home province of Alberta.”
“Today’s announcement is an example of private and public partnerships driving new developments, new sectors and new jobs at EIA for the benefit of the entire region. Aurora, one of our region’s global business leaders, supported by the province of Alberta’s CITC program, represents another shining example of our business and government partners working together to enable diversification.”
The program supports the government’s work to diversify the economy, with 17 Alberta businesses from a variety of sectors taking advantage of the second intake. New projects include building a skydiving facility, craft brewery and tap room, biofuel facility, glass factory and natural gas facility. Expansion projects include upgrades at a precision machining shop, trailer manufacturer, metal manufacturing plant and pulp mills.
- Credits from the first and second round of the CITC are expected to support more than 3,000 jobs, with companies investing more than $1.2 billion to build or upgrade their facilities.
- The maximum value of the non-refundable tax credit is $5 million per company.
- The total value of the first two rounds of credits is about $62 million.
- The third CITC intake window opened on Jan. 15 and will run to March 16, 2018.
- To learn more about eligibility criteria and how to apply, visit: jobsplan.alberta.ca.