Alberta Agri-Processing Investment Tax Credit (APITC)
$175,000,000.00
Tax Credit
Description:
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. The tax credit program builds on Alberta’s other competitive advantages. We offer abundant agricultural resources, one of the lowest tax rates in North America, a business-friendly environment, and a robust transportation network with connections to international markets.
Comments on Funding:
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.
Continuous Intake
Eligibility:
Applicants must:
1. Be 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
2. Be incorporated, registered, or continued under Alberta’s Business Corporations Act
3. 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:
1. Are registered under Alberta’s Partnership Act
2. Are not LLPs
3. Submit a partnership agreement
4. 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)
Application Steps:
Applicants must:
1. Apply for conditional approval online and submit the required documents using the online form.
2. After receiving conditional approval, applicants must provide progress updates every 180 days until the project is complete. Submit the completed Status Reporting form to apitc@gov.ab.ca.
3. When the project is complete and the new facility or expansion is operational, applicants may apply for the APITC Certificate by contacting the program.
Documentation Needed:
Applicants must submit:
1. A completed Proposed Investment Plan
2. Partnership agreement(s) if applicable
3. Engineering estimate prepared by a 3rd party (minimum Class 4)
4. Project status reports (progress reporting schedule, approved investment plan, pre-populated form that will be sent 30 days before the reporting due date or complete the blank Status Reporting form)
5. A compliance report on capital expenditures;
6. A baseline and a follow-up report to show an expansion project increased productivity (not required for new build projects);
7. A real estate appraisal, if needed.
8. Ccompleted APITC Certificate Application Form
Other Things to Note:
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:
–up to 20% in the first year
–up to 30% in the second year
–up to 50% in the third year
About the author
Maurice
