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By Chris Brown

Agriculture

New Alberta tax credit for agri-processing coming this spring

Feb 7, 2023 | 5:17 PM

Alberta is introducing a new agri-processing tax credit that the government says will keep our province’s competitive advantage, bring investment and diversify the economy.

Agriculture and Irrigation Minister Nate Horner says producers and processors have been urging the government to do more to help grow the agri-processing industry.

The Alberta Agri-Processing Investment Tax Credit will provide a 12 per cent non-refundable tax credit aimed at supporting growth within the ag industry.

The government says the tax credit will be introduced in this spring’s budget.

Corporations must make a minimum capital investment of $10 million in value-added agri-processing in the province to be eligible for the credit.

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Horner says the credit will allow the province to attract large-scale agri-food projects that will help grow the industry, increase opportunities for primary producers, create jobs and feed the world.

“There is good reason for Alberta to target investment in the value-added agriculture sector. The economic opportunity is huge,” he says. “As the global population continues to increase demand for processed and packaged foods is expected to grow considerably, and Alberta is well-positioned to meet this demand.”

Horner adds that when what is grown in Alberta is also processed here, the jobs and economic benefits stay in the province.

NDP Agriculture and Rural Economic Development Critic Heather Sweet issued the following statement in response to the UCP’s announcement of a new agri-processing tax credit:

“Our agri-processing industry has suffered from a competitive disadvantage under the UCP as other prairies provinces aggressively move ahead with incentives to attract investment in the sector.

“For years, we have been calling on the UCP to restore our competitiveness and released our own proposal to increase value-added processing and production, which included an incentive program.

“It’s encouraging to see the UCP finally act on this; however, today’s announcement falls short of what the other prairie provinces provide for support and also fails to address the regulatory burden in Alberta.

“An NDP government will implement a value-add incentive program that attracts investment, builds a resilient economy, decreases approval times, and creates good-paying jobs.”

(With files from rdnewsNOW)