Alberta Agri-processing Investment Tax Credit

The Agri-processing Investment Tax Credit (APITC) provides a 12% non-refundable tax credit against eligible capital expenditures for corporations investing $10 million or more to build or expand agri-processing facilities in Alberta.

This program builds on Alberta’s other competitive advantages to make the province the preferred destination for large-scale agri-processing investments.

The Government of Alberta’s Agri-processing Investment Tax Credit (APITC) program provides a 12 per cent nonrefundable tax credit based on eligible capital expenditures to corporations investing $10 million or more to build or expand agri-processing facilities in Alberta. 

The maximum tax credit amount is $175 million per project. The tax credit can be claimed against Alberta corporate taxes and may be carried forward up to 10 years. 

The program builds on Alberta’s other competitive advantages to make the province the preferred destination for large-scale agri-processing investments. 

Applying for the APITC has two stages: 

1) Application for conditional approval; and 

2) Application for the tax credit certificate after the new or expanded facility is operational. 

Before making a submission to the APITC program, applicants should thoroughly review: 

• The Investing in a Diversified Alberta Economy Act, Part 2.1; 

• The Agri-processing Investment Tax Credit Regulation; and 

• The Alberta Corporate Tax Act and Regulations. Investment Tax Credit Calculation of tax credit: The APITC program provides a 12 per cent non-refundable tax credit based on eligible capital expenditures. Expenditures made on or after February 7, 2023 may be considered in the calculation of the tax credit. Carry forward period: once the APITC certificate is granted, its value can be claimed against corporate income taxes owed in Alberta until the value of the credit is used up, for up to 10 years. 

The maximum amount that can be claimed in the first three years is limited as follows:

 • up to 20% of the APITC amount in the first taxation year; 

• up to 30% of the APITC amount in the second taxation year; and • up to 50% of the APITC in the third taxation year. Any remaining credit can be carried forward up to year 10. Maximum tax credit value: The maximum tax credit amount that may be granted to a corporation is $175 million per project. Minimum investment required: The minimum capital expenditures in the proposed investment plan is $10 million per project. Total capital expenditures may include both eligible and non-eligible capital expenditures.

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