Alberta plans tax credit for investments in tech, tourism
30% tax credit would be offered over the next 3 years
Alberta plans to offer up to $90 million in tax credits for investments in small businesses in the technology and tourism sectors.
The 30 per cent tax credit would be offered over the next three years for investments in companies involved in proprietary technology, interactive digital media development, video post-production, digital animation or tourism.
The tax credit will create 4,400 jobs and $500 million in economic growth, said Deron Bilous, economic development minister in a press release on Thursday.
"Our small businesses have a bigger economic impact than small businesses anywhere else in Canada. More access to capital for them means more jobs and a more diversified economy for our province."
But University of Calgary economist Trevor Tombe is skeptical of that claim, in part because it's hard to measure.
"There's still research ongoing about how temporary investment credits do affect the economy. They do show investment will grow, employment will grow and GDP will grow, but it's very hard to pin down the precise effect of a particular policy, so we may not ever know," he said.
The government says the program was put together in consultation with Calgary's business community. The tax credit will be introduced this fall in the Alberta legislature.