Advancing Alberta’s Recovery Plan

Bill 35, the Tax Statutes (Creating Jobs and Driving Innovation) Amendment Act legislates two important components of Alberta’s Recovery Plan – the acceleration of the Job Creation Tax Cut and the Innovation Employment Grant.

The Voice of Canada News:

If passed, the bill will make changes to tax legislation that will solidify Alberta as one of the most competitive places in North America to do business.

“As the economy recovers and the global business community begins to invest and create jobs again, the changes proposed in this bill put the province in the best possible position to lead the recovery and sustain growth in the years to come.”-Travis Toews, President of Treasury Board and Minister of Finance

As part of Alberta’s Recovery Plan, the Job Creation Tax Cut was accelerated to lower the corporate income tax rate to eight per cent, effective July 1, 2020, a year and a half ahead of schedule. This change will attract new investment to the province after the economic slow down caused by the pandemic and oil price collapse.

The bill also includes the legislative changes necessary for the Innovation Employment Grant (IEG). This grant will attract small and medium-sized Alberta businesses that invest in research and development (R&D). The grant will use an incremental approach that is unique within Canada, rewarding increased R&D spending.

With the IEG and a low general business tax rate, Alberta job creators will have a competitive advantage at each stage in their development. The two programs are a major part of government’s plan to make Alberta a top destination for a wide range of businesses.

Alberta’s Recovery Plan is a bold, ambitious long-term strategy to build, diversify and create tens of thousands of jobs now. By building schools, roads and other core infrastructure we are benefiting our communities. By diversifying our economy and attracting investment with Canada’s most competitive tax environment, we are putting Alberta on a path for a generation of growth.

Quick facts

• The Innovation Employment Grant will be worth up to 20 per cent of qualifying R&D expenditures. Details include:
  • An eight per cent payment on a corporation’s base level of R&D spending, providing stable support for all small and medium-sized firms undertaking R&D.
  • A 20 per cent incremental payment on increasing R&D spending – an approach that is unique within Canada.
• Alberta is now the most tax-competitive business jurisdiction in Canada and among the most attractive investment destinations in North America.
  • The corporate tax rate was lowered from 10 per cent to eight per cent on July 1, 2020 – a year and a half ahead of schedule.