EDMONTON – Alberta’s economic development minister says a new investor tax credit will provide $90 million to help small- and medium-sized tech companies.
Deron Bilous outlined the details of the new credit Monday at an Edmonton business management software firm.
Bilous said that as of Jan. 1, investors will be able to receive a 30 per cent tax credit for investing in Alberta information, health and green technology companies.
Others to benefits include those working in interactive digital media and game products, digital animation, post-production and visual effects.
“These are growing industries in our province and industries that require highly skilled workers,” said Bilous.
“The majority of companies in these sectors have less than 100 employees, and new businesses and startups are big contributors to job creation.”
Bilous said the government will work out details, including the maximum investment amount, in the coming months.
The program is to run for two years and then be reassessed.
Bilous said Alberta is catching up to similar programs elsewhere.
“Over the last 10 years Alberta has consistently lagged behind other Canadian provinces in terms of venture capital dollars.”
The tax credit is part of the government’s new jobs creation package outlined in last week’s budget.
Premier Rachel Notley’s government has already put up about $2 billion in loan and investment incentive programs in an attempt to create jobs and move the economy away from its reliance on fossil fuels.
That reliance has seen Alberta move deep into the red due to the prolonged slump in oil prices.
Alberta’s deficit is expected to be more than $10 billion this year and $10 billion again the year after that.