The Alberta Government is introducing a new agri-processing tax credit that they hope will help attract large-scale investments and diversity to help create jobs for many Albertans.
As Canada and North America are looking to capitalize on the potential of the agri-processing industry, Alberta hopes to build on province specific advantages it has when it comes to the agriculture industry by launching this new tax credit program in the spring of 2023.
The 2023 budget will introduce the Alberta Agri-Processing investment tax credit which will produce a 12 per cent nonrefundable tax credit that will support growth and attract investment.
Corporations can be eligible for this tax credit by making a minimum capital investment of $10 million in value added agri processing in Alberta.
Alberta Premier Danielle Smith explains that agriculture has been a key part of Alberta’s economy for more than 100 years, and hopes to keep it that way.
“I am excited to see this tax credit program roll out so that it comes to be a key part of our economy in the future.”
Smith then goes on to say that Alberta’s agriculture producers play an important role in feeding the world and she looks forward to seeing further innovation and growth in that sector.
The Minister of Agriculture and Irrigation Nate Horner added that Alberta has the fundamentals to take the agriculture industry to new heights and to meet the increasing global demand for food.
“The new agri-processing tax credit will allow us to attract large scale agri-food projects that will help grow our industry, increase opportunities for primary producers, create jobs and feed the world,” Horner states.
Through this, the government says agriculture will continue to play a fundamental role in the province's economy and identity.
"Incentivizing large capital investments will ensure the sector remains strong for generations to come and capable of adapting to the economy of the future," a government press release said.
CEO of Harmony Beef Rich Vesta states that with the introduction of this tax credit Alberta has positioned itself for more large-scale investments than ever before.
“This is the right way for Alberta’s agri-food sector to support more diversification, create jobs, compete and win,” Vesta said.
The food manufacturing industry is the largest manufacturing industry in the province. The global demand for food is said to increase by up to 56 percent in 2050.