Alberta is speeding up a planned cut to the corporate income tax rate to help revive an economy hit by both the pandemic and the global oil price crash.
- The rate will drop to 8% from 10% on July 1, a year and a half early, Premier Jason Kenney said Monday. The province began a process of gradually dropping the rate from 12% last July to give the province one of the lowest tax rates in Canada and the U.S.
- The tax cut is expected to increase investment by C$4 billion ($2.9 billion) per year by 2023 and could add 55,000 jobs by 2022, the government said.
- The accelerated cut is part of an economic recovery plan that includes C$10 billion in infrastructure spending. The plan also includes a refundable tax credit for companies that invest in research and development.
- Alberta’s oil sands contain the world’s third-largest oil reserves.