Alberta Agri-Processing Investment Tax Credit (APITC)
The Agri-Processing Investment Tax Credit (APITC) program provides a 12% non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bioprocessors that add value to commodities like grains or meat, or turn agricultural by-products into new consumer or industrial goods.
Offered by Ministry of Agriculture and Irrigation
Amount
12% non-refundable, non-transferable tax credit on investments of $10 million or more, up to $175 million in tax credits for each project, claimable over 10 years
Quick eligibility check
Who can apply
The program is designed for corporations and registered partnerships in value-added agri-processing industries, such as:
- Food, beverage, meat, alternative protein and animal feed manufacturing
- Biofuel, biomass, sustainable aviation fuel and biochemical production
- Bioplastics, biocomposites, biomaterials, textiles, fibre, building products and automotive parts manufacturing
- Cosmetics, ingredients, personal care and natural health products production
- Other value-added agricultural products
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 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
- 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 (pages 9 to 23, The Alberta Gazette, Part II, Nov. 30, 2024)
Projects
For a project to be considered for the program, a corporation or registered partnership must invest at least $10 million in a value-added agri-processing facility in Alberta. The investment could:
- build and operationalize a new facility, or
- expand an existing facility and increase production
When the project is complete, the facility must 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
Not eligible:
Ineligible projects and expenses
The program will not consider
projects structured through joint ventures or unregistered partnerships – eligible corporations within these business arrangements may apply individually
capital expenses for equipment and facilities that only clean, bag, handle, store and sort product
primary agriculture projects to build or expand greenhouses and vertical farms, or grow or harvest crops
About the funding
The Agri-Processing Investment Tax Credit (APITC) program provides a 12% non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta.
Up to $175 million in tax credits is available for each project. Eligible agri-processors have 10 years to claim the tax credit against their provincial income tax.
Based on this information and eligibility requirements, applicants may receive full, reduced or no tax credits.
When corporations receive the Agri-Processing Investment Tax Credit 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:
Show all funding details
- up to 20% in the first year
- up to 30% in the second year
- up to 50% in the third year
The investment must be for new capital expenditures such as land, facility construction and processing equipment. These expenses have to occur on or after February 7, 2023 and meet the conditions in the Investing in a Diversified Alberta Economy Act (Part 2.1).
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