Alberta's agricultural tax credit program reduced to single application. Stevanovicigor/Dreamstime.com

By Jayk Sterkenburg

AGRICULTURE

Alberta simplifies agri-processing investment tax credit program

Dec 10, 2024 | 5:15 PM

Alberta’s government has updated the Agri-Processing Investment Tax Credit program to allow for a simplified application process.

Registered partnerships can apply starting Dec 10 with only a single application to build or expand an agricultural manufacturing facility in Alberta.

A 12 per cent non-refundable tax credit is available for applicants to receive for investing at least $10 million in a new or existing facility.

Up to $175 million in tax credits are available for each project. Agricultural manufacturers have 10 years to claim tax credits against their provincial income tax.

There is no limit to applications for the program, meaning any number of registered corporations can apply.

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Agriculture and irrigation minister RJ Sigurdson said that all food manufacturers and bio-processors are encouraged to apply.

“Alberta’s government is signalling to investors that our province is a competitive place to do business and create new jobs in our food manufacturing and bioprocessing industries,” Sigurdson said Tuesday.

Existing applicants will have six months for their applications to be reconsidered under the new rules for partnerships who are registered.

Corporations can apply if they are incorporated, registered, or continued under Alberta’s Business Corporations Act.

They must meet the eligibility conditions listed in the Investing in a Diversified Alberta Economy Act and the Agri-processing Investment Tax Credit Regulation.

The program is open to any food manufacturers and bioprocessors that add value to commodities such as grains or meat, or turn agricultural by-products into new goods.

The program will not consider capital expenses for equipment and facilities that only clean, bag, handle, store and sort product.

Also not considered are joint ventures or unregistered partnerships. Eligible corporations within these business arrangements can apply individually.

Applicants must follow three steps to be considered for the tax credit program. Apply for conditional approval, report their progress, then apply for the certificate.

Having received the certificate, the maximum amount of the Agri-Processing Investment Tax Credit corporations can receive in the first year is 20 per cent.

Upon their third year, 50 per cent of the tax credit can be claimed.