Alberta’s Recovery Plan

On June 29, Premier Jason Kenney released the province’s Recovery Plan. The economic strategy includes corporate tax cuts, new infrastructure, industry targeted initiatives, and a plan to create a new investment agency.

The Recovery Plan is reminiscent of the government’s election platform commitments and includes initiatives that the government had planned to deliver before the onset of the COVID-19 pandemic, global recession, and the decrease in oil prices. Although some of the details of the plan are not yet released, the nonprofit and charitable sector has not been included in the Recovery Plan.

Here are some highlights of the announcement:

Investment in Infrastructure

The government will invest $10 billion in infrastructure intended to create 50,000 jobs. This summer, the government projects a cost of $612 million to develop large-scale infrastructure. These include developing highways, projects that support growth in the agricultural sector, gas line extensions for northern residents, treatment facilities for Albertans recovering from addictions, and other projects which will be announced in the coming months.

Tax Cuts for Businesses

On July 1, the corporate income tax rate dropped to 8% from the previous 10% – a year earlier than initially planned. The government is also planning to reduce more red tape for businesses regarding processes and regulations. 

Innovation Employment Grant

This grant program will target smaller businesses, and encourage technology and investment in the province. It will provide a refundable tax credit to companies that invest in research and development.

Suspension of the Temporary Foreign Worker Program

The province will ask the federal government to remove most occupational categories under the Temporary Foreign Worker Program for Alberta, reducing the number of foreign workers working in Alberta to “help Albertans first.” The Premier indicated that many Albertans are facing unemployment and the province cannot justify bringing in foreign workers amidst a labour crisis. 

Cultural Event Relaunch Program

The plan will create a Cultural Event Relaunch Program to support music, performing arts, and landmark events that have been hard-hit by public health measures. The details of this program are forthcoming. 

Plan to Create a New Investment Agency

The government has allocated $6 million a year over three years to the “Invest Alberta” agency for its operation. The agency is tasked with restoring “economic growth, [creating] jobs, and [diversifying] our economy.” The Premier indicated that the agency would set up an office in Houston. 

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