Canada: Tax credits repealed and enacted (Alberta); effective 2020

Canada: Tax credits repealed and enacted (Alberta)

Alberta's 2019 budget bill received Royal Assent on 5 December 2019.

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The legislation repeals several tax credits that were available in the province—including the scientific research and experimental development (SR&ED) tax credit—effective 1 January 2020. As a result, SR&ED eligible expenses incurred after 31 December 2019 are no longer eligible for this credit. Other tax credits that are repealed include:

  • Alberta investor tax credit
  • Community economic development corporation tax credit
  • Capital investment tax credit
  • Interactive digital media tax credit

The legislation, however, introduces new tax credit for film and television production activities. The credit will allow eligible taxpayer companies to claim 22% of eligible expenditures (less designated assistance amounts) for a maximum amount that will be established by regulation. The budget bill had set a maximum amount of the credit at $10 million.* To claim the credit, companies would need to apply for a certificate and attach that certificate when filing their tax returns. The effective date of the tax credit is to be established by proclamation (the budget indicated an effective date in the spring of 2020).

Read a December 2019 report prepared by the KPMG member firm in Canada


*$ = Canadian dollar

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