Alberta is allowing businesses to invest in equipment with quicker writeoffs to better support their growth and job creation.
The province is implementing the accelerated capital cost allowance enhancements adopted by the federal government. This change allows companies to write off 100 per cent of investments in manufacturing and clean energy equipment in the first year, as opposed to the previous rate of 25 per cent. For other types of capital investments, this enhancement allows a writeoff of up to three times the normal first-year allowance.
“Our government is taking action to get Albertans back to work. We chose to adopt these enhancements as part of our strategy to support job creation and economic diversification. This measure, combined with the Job Creation Tax Cut, will encourage Alberta businesses to invest, grow and create jobs in our province.”Travis Toews, Minister of Treasury Board and Finance
Like the Job Creation Tax Cut, this change to the province’s capital cost allowance rules will benefit Alberta businesses of all sizes and in all sectors. Faster writeoffs of capital investments provide income tax relief for companies and support new investment and job creation.
“These investment incentives are critical in the development of creating value-added goods, which in turn create employment, tax base and help our global competitiveness in industries across the country. For our company, this will help stabilize our recent investment decision into the development of a world-scale polypropylene facility, which produces durable and recyclable products used in many industries in Canada. Polypropylene would otherwise need to be imported.”Mick Dilger, president and CEO, Pembina Pipeline Corporation
“Accelerated capital cost allowance is an important tool in getting our economy moving; it incentivizes investments and projects that can have benefit well beyond the particular company making them. In the past, it was a major part of what helped build the modern Alberta economy, and specifically the world’s best energy sector. This policy enhancement creates important opportunities for businesses to invest in growth and create meaningful jobs, which ultimately play a role in putting the province on a path toward greater economic and social prosperity.”Adam Legge, president, Business Council of Alberta
Government actions are re-establishing Alberta as the most tax-competitive jurisdiction in Canada. Alberta is attracting much-needed investment back to the province by easing the tax burden on Alberta’s job creators and eliminating red tape.