CALGARY – The Alberta government plans to introduce a tax credit for investments in small businesses in the fall sitting of the legislature.
Economic Development Minister Deron Bilous says there will be a 30 per cent tax credit for investments in Alberta small businesses made between April 14 of this year and Dec. 31, 2019.
The government says the tax credit would support up to 4,400 new jobs over three years and contribute up to $500 million to the province’s GDP.
The tax credit is part of the government’s jobs plan.
Bilous says the government is also restoring training programs for entrepreneurs, cutting the small business tax and protecting a multibillion-dollar tax advantage over other provinces.
Justin Smith with the Calgary Chamber of Commerce says the province has large pools of capital but until today, policy measures were sorely needed to encourage the flow of this capital into the province’s small businesses.
“This tax credit puts the onus on investors to make the final decision on risk and efficiency, while keeping their money in Alberta and putting it toward growth-oriented firms,” Smith said in a news release Thursday.
The tax credit legislation, if passed, will have a budget of $90 million over three years and would be provided on a first-come, first-served basis.
The tax credit will be available for investments in companies that are substantially engaged in proprietary technology research, development or commercialization; interactive digital media development; video post-production; digital animation; or tourism.
The government says investment criteria were developed through extensive consultation with business and investment leaders across Alberta and are designed to encourage economic diversification.