Amount: 12% non-refundable tax credit up to $175 million
The Agri-Processing Investment Tax Credit (APITC) provides a 12% non-refundable tax credit when corporations invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. Corporations have 10 years to claim the tax credit against their provincial income tax.
This tax credit is making the province a preferred destination for large scale projects, building on the competitive advantages and reasons why agri-processing companies invest in Alberta.
Eligibility Requirements
Corporations may apply to the APITC program 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
Eligible Projects and Expenses
A project may be considered for the APITC program if:
- at least CAD $10 million is invested in new capital expenditures such as land, facility construction and processing equipment
- a new agricultural processing facility is built and operationalized or an existing facility is expanded and production capacity is increased
- the new build or expansion creates capacity to produce a new or upgraded product by physically transforming or upgrading:
- any raw or primary agricultural product
- any agricultural by-product or waste
- previously transformed or upgraded product
- the facility is physically located within Alberta
- capital expenses are made on or after February 7, 2023 and meet the conditions in the Investing in a Diversified Alberta Economy Act (Part 2.1)
Ineligible Projects and Costs
New build and expansion projects in value-added agricultural processing facilities are not eligible for the APITC when capital expenses are only for product cleaning, bagging, handling, storing or sorting.
Primary agriculture projects are not eligible for the APITC program. This includes:
- building or expanding greenhouses and vertical farms
- growing or harvesting crops and livestock
Amount of the Credit
Up to $175 million in tax credits is available for each project.
Claiming the Tax Credit
When corporations receive the APITC Certificate for a full or reduced tax credit, they have 10 years to claim it against their Alberta corporate taxes. The maximum amount of the APITC that can be claimed in the first 3 years is:
- up to 20% in the first year
- up to 30% in the second year
- up to 50% in the third year
