Travis Toews, Minister of Finance, speaks to the media about the MacKinnon Panel report on Alberta’s Finances in Calgary, Alta., Tuesday, Sept. 3, 2019. Alberta’s finance minister says the province will take drastic action to ensure its financial books move from the red to the black. THE CANADIAN PRESS/Jeff McIntosh

Alberta government reduces corporate tax starting Wednesday to foster investment, growth

The UCP government has reduced Alberta’s corporate tax rate from 11 per cent to 10 per cent as part of the ongoing Job Creation Tax Cut.

This scheduled tax reduction, effective Jan. 1, improves Alberta’s competitiveness and encourages businesses to invest and hire in the province, the government said in a release Wednesday.

“It will take time to reverse the damage done to Alberta’s economy, but we are seeing positive signs that the Job Creation Tax Cut is working,” said Finance Minister Travis Toews. “We expect more good news of increased investment as the rate continues to decrease and businesses make new plans. We will continue to work to attract investment to Alberta.”

Canadian Natural Resources Limited (CNRL) announced plans to expand its operations in response to the Job Creation Tax Cut. In early December, CNRL increased its 2020 capital budget by $250 million, which they estimate will create about 1,000 new full-time jobs for Albertans.

Telus also announced a $16-billion investment in Alberta over the next five years connecting businesses and homes across the province to fibre and preparing for 5G. The investment comes with an anticipated 5,000 jobs over the course of the project.

“By lowering taxes on job creators, the Alberta government is trying to get Albertans back to work the right way. These tax reductions will help Albertans get back on their feet and get ahead,” says Canadian Taxpayers Federation, Alberta director, Franco Terrazzano.

Alberta’s general corporate income tax rate is the lowest in Canada. Alberta’s combined federal-provincial corporate tax rate will be lower than that of 44 U.S. states when it reaches 8.0 per cent on Jan. 1, 2022.

The province says non-residential investment in Alberta’s business sector was up by 4.7 per cent year-over-year in the third quarter of 2019, the first annual increase since the second quarter of 2018.

With strong growth in housing starts through the summer, investment in residential construction has improved by more than 21 per cent in 2019 from the multi-year lows seen in late 2018, according to the UCP government.

Building permits, a leading indicator of construction activity, have improved in three of the last four months and were up 3.8 per cent year-over-year in October.

In October, home sales rebounded by more than 11 per cent since they reached an eight-year low in February. Compared to the same month last year, home sales were up by 8.8 per cent.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Sylvan Lake beachgoers spark safety concerns

‘You’re putting your life at risk,’ tweets Rachel Notley

Conservatives call for Trudeau to testify at committee on WE Charity deal

Ethics Commissioner Mario Dion is already investigating whether Trudeau violated the Conflict of Interest Act

Beat the heat this summer with pop-up spray parks

Starting next week, spray parks will be popping up in neighbourhoods across… Continue reading

Genetic detectives begin work to trace spread of COVID-19 in Canada

The kinds of genetic technology being used for this project did not exist when SARS hit Canada in 2003

Quebec police continue search for father, one day after missing girls found dead

Bodies were found in a wooded area of Quebec City suburb

QUIZ: Are you ready for a summer road trip?

How much do you really know about roads, motor vehicles and car culture? Take this quiz to find out.

Canmore RCMP respond to multiple hiking injury calls this weekend

EMS and RCMP responded to three separate and unrelated hiking accidents in Kananaskis Country.

You can’t put a price on memories

Some people would rather buy something than sell something. Some people are… Continue reading

Masks and gloves: Elections Saskatchewan preparing for pandemic election

REGINA — Elections Saskatchewan estimates it will need 400,000 face masks and… Continue reading

Quebec police say they found 2 bodies in St-Apollinaire during search for 2 girls

SAINT-APOLLINAIRE, Que. — Quebec provincial police continue to search for the father… Continue reading

NHL commissioner Gary Bettman, NHLPA chief Don Fehr reflect on RTP, CBA deals

Gary Bettman and Don Fehr finally have a chance to catch their… Continue reading

NHL’s road to Edmonton and Toronto featured plenty of obstacles

Since early March, the novel coronavirus has affected almost every decision facing… Continue reading

Florida sets record week for coronavirus deaths

FORT LAUDERDALE, Fla. — Florida’s coronavirus death rate rose again Saturday, setting… Continue reading

Trump’s defiant help for Stone adds to tumult in Washington

WASHINGTON — President Donald Trump’s intervention into a criminal case connected to… Continue reading

Most Read