Find out what’s in it for your business!
On October 24th, the Alberta government released its first budget (A plan for jobs and the economy), outlining a four-year plan to return the provincial books to balance by 2022-23, a focus on red tape reduction, and getting Albertans back to work.
2019 Budget Highlights
• The deficit is estimated to hit $8.7 billion for 2019-20 on revenues of $50 billion
• The province’s total debt is expected to reach $90.2 billion for 2019-20 and is projected to grow to $114.2 billion by 2022 with more than $3.1 billion in interest payments a year by 2022
• The government will reduce operating costs by 2.8% to $47.1 billion over the next four years
• Reduce the public sector by 7.7% over the next four years (mainly through attrition) with the goal of bringing Alberta government wages in line with other provinces.
• Elimination of the carbon tax
• A decrease in the corporate income tax rate from 12% to 8% over the next four years to promote job creation and economic growth
• A one-time payment of $1.5 billion to end the crude-by-rail shipment plan announced
• Five business tax credits were scrapped in favor of a simple lower corporate income tax regime, including: the Capital Investment Tax Credit, the Community Economic Development Corporation Tax Credit, the Capital Investment Tax Credit, the Interactive Digital Media Tax Credit and the Scientific Research and Experimental Development Tax Credit
• Enhancements to capital cost allowance were made- businesses are now eligible to claim up to three times the normal first‑year cost allowance.
Find out what we thought on the unveiling of Alberta’s budget here!
This is only the first budget of the new Government’s mandate- we will continue to bring forward the concerns of you and your business as we progress through the government’s term. As always, please do not hesitate to reach out to our team at 1-888-234-2232 or email us at [email protected].
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