New tax credit gives a boost to Alberta’s agricultural industry

The Government of Alberta has announced a new Agri-processing Investment Tax Credit (AITC) to promote investment in the province’s agriculture and agri-processing sectors. The AITC will provide a 12% non-refundable tax credit to corporations that invest $10 million or more on eligible capital expenditures to build or expand agri-processing facilities in Alberta.

New tax incentive coming this spring

Applications for the AITC open in the spring of 2023. Capital investments made on or after February 7, 2023, will be considered when calculating this year’s total tax credit. Further details on eligibility criteria are currently being developed and will be posted on the Government of Alberta’s AITC webpage.

Another tool to grow Alberta’s agriculture sector

The AITC builds on the suite of investment incentives and resources developed under the province’s three-pillar Agri-food Investment and Growth Strategy, which is designed to:

  1. Invest in value-added agricultural processing capacity;
  2. Increase agri-food exports; and
  3. Expand irrigation.

Alberta’s agri-food industry has attracted $1.5 billion in investment since April 2019, according to the province. The AITC provides further incentive to invest in Alberta’s agri-processing sector and an opportunity for agri-processors to expand their operations and modernize their facilities.

If you’re an agri-processor in Alberta, contact the MLT Aikins Agriculture & Food Team to discuss how you can incorporate the new AITC program and other incentives into your strategy to capitalize on growing global demand.

Note: This article is of a general nature only and is not exhaustive of all possible legal rights or remedies. In addition, laws may change over time and should be interpreted only in the context of particular circumstances such that these materials are not intended to be relied upon or taken as legal advice or opinion. Readers should consult a legal professional for specific advice in any particular situation.