Alberta introduces new agri-processing tax credit

Alberta’s food manufacturing sales reached a record $20.1 billion in 2021. Now, a move by the provincial government is hoping to drive that number even higher.

“We are here to send a clear message to potential investors across North America and the world. We have heard from Alberta’s producers and processors that we need to do more to help grow our provinces agri-processing industry,” said Nate Horner, Minister of Agriculture and Irrigation.

Read more: Pea protein company puts down roots with new Lethbridge facility

Read next: Chinese spy balloon: U.S. Navy releases up-close photos of debris recovery

The Alberta Agri-Processing Investment Tax Credit will give a 12 per cent non-refundable tax credit to corporations that make a minimum capital investment of $10 million or more to to build or expand agri-processing facilities in Alberta.

Horner said the specifics of the tax credit are still being ironed out, but believes it will benefit all aspects if the agriculture sector.

Story continues below advertisement

“If you assume that anything that takes a raw agricultural commodity and changes it and adds value in some way, that fits the model,” added Horner.

Horner said the goal is to draw even more business to the province: “This is for new investment — that could mean expansion of current facilities, but that is the intention, this is for new investment.”

In 2021, the food sector was the largest manufacturing industry in the province.

Finance Minster Travis Toews said the success in the ag sector played a role last week, when Alberta saw its credit rating improve.

“Just over a week ago, Moody’s Investor Service upgraded Alberta’s credit rating and Alberta’s strong economy is one of the factors that influenced that rating change, good news, good news for all Albertans,” added Toews.

Read more: Cavendish Farms opens new frozen potato plant in Lethbridge

Read next: Amateur metal detectorist uncovers incredibly rare 500-year-old royal pendant

The province said global demand for food is expected to increase by up to 56 per cent in 2050 and this new tax credit will ensure Alberta is set up to grow the economy and help feed the world.

&© 2023 Global News, a division of Corus Entertainment Inc.

View original article here Source