Cutting red tape in tax credit program

Changes to the Agri-Processing Investment Tax Credit program allow registered partnerships to apply with a single application and investment.

Alberta’s government has updated the Agri-Processing Investment Tax Credit program to cut red tape and simplify how registered partnerships apply. Starting Dec. 10, a registered partnership can apply using a single application when investing at least $10 million to build or expand a value-added agricultural manufacturing facility in Alberta. Before this change, corporations within partnerships could apply individually to the program and each needed to meet the minimum investment amount.

“Alberta’s government is signalling to investors that our province is a competitive place to do business and create new jobs in our food manufacturing and bioprocessing industries. We’ve updated the Agri-Processing Investment Tax Credit program to make it easier for registered partnerships to apply. We’re encouraging all food manufacturers and bioprocessors to check it out and apply online.”

RJ Sigurdson, Minister of Agriculture and Irrigation
There is no application cap on the program, which means there is no limit to the number of registered partnerships or individual corporations that can apply. The program is open to any food manufacturers and bioprocessors that add value to commodities like grains and meat, or turn agricultural by-products into new consumer or industrial goods. Applicants may receive a 12 per cent non-refundable tax credit for investing in a new or existing facility that transforms ag products like pork into breakfast sausage or canola seed into renewable diesel, and more.

Quick facts

• Existing applicants will have six months to have their applications reconsidered under the new rules for registered partnerships.
• Corporations may apply if they:
• are incorporated, registered, or continued under Alberta’s Business Corporations Act, and
• meet the eligibility conditions set out in the Investing in a Diversified Alberta Economy Act (Part 2.1) and the Agri-processing Investment Tax Credit Regulation.
• Partnerships may apply if they:
• are registered under Alberta's Partnership Act,
• are not LLPs,
• submit a partnership agreement, and
• meet all the eligibility conditions set out in the Investing in a Diversified Alberta Economy Act (Part 2.1), the Agri-processing Investment Tax Credit Regulation and the Agri-Processing Investment Tax Credit Amendment Regulation (The Alberta Gazette, Part II, Nov. 30, 2024, pages 9-23).
• Up to $175 million in tax credits are available for each project.
• Value-added agricultural manufacturers have 10 years to claim the tax credit against their provincial income tax.
• There are three steps to be considered for the tax credit program. Value-added food and bioprocessors can find out more and apply online.