The federal government has made a few changes to Canada's tax system.
Bill Morneau, the Federal Minister of Finance, released his fall economic on Thursday (Nov.22) called 'Investing in Middle Class Jobs'. Some of the key provisions in the update reflect recommendations made by Alberta’s Industrial Heartland Association.
One of the main changes in the document is the ability for businesses to immediately write off the cost of machinery and equipment used for manufacturing or processing goods, as well as write off the full cost of specified clean energy equipment.
The federal government also announced that they will enhance the Strategic Innovation Fund, providing an additional $800 million over the period of five years to support innovative investments across the country.
"We believe that will be favourable for companies that are looking to invest in the region and that is something that we've been advocating for for the last 12 months," said Mark Plamondon, executive director of Alberta's Industrial Heartland Association.
The provincial government also made a recent announcement that they are more than doubling the amount of royalty credits available to companies that are participating in Alberta's Petrochemical Diversification Program, a program that provides royalty credits to companies that are investing in Alberta to upgrade methane, propane or ethane. The government will increase funding from $500 million in royalty credits to $1.1 billion.
They also agreed to increase the grants and loan guarantees under the Petrochemical Feedstock Infrastructure Program from $500 million to $1 billion.
"You put both of those together and that's a very strong investment attraction tool and could have significant benefit for Alberta's Industrial Heartland."