Overview
The Agri-Processing Investment Tax Credit (APITC) program provides a 12% non-refundable, non-transferable tax credit when businesses invest $10 million or more in a project to build or expand a value-added agri-processing facility in Alberta. The program is open to any food manufacturers and bioprocessors that add value to commodities like grains or meat, or turn agricultural by-products into new consumer or industrial goods. Up to $175 million in tax credits is available for each project. Eligible agri-processors have 10 years to claim the tax credit against their provincial income tax.
The tax credit program builds on Alberta’s other competitive advantages. We offer abundant agricultural resources, one of the lowest tax rates in North America, a business-friendly environment, and a robust transportation network with connections to international markets.
Eligibility
Eligible agri-processors
The program is designed for corporations and registered partnerships in value-added agri-processing industries, such as:
- Food, beverage, meat, alternative protein and animal feed manufacturing
- Biofuel, biomass, sustainable aviation fuel and biochemical production
- Bioplastics, biocomposites, biomaterials, textiles, fibre, building products and automotive parts manufacturing
- Cosmetics, ingredients, personal care and natural health products production
- Other value-added agricultural products
Corporations may apply if they:
- are incorporated, registered, or continued under Alberta’s Business Corporations Act, and
- meet the eligibility conditions set out in the Investing in a Investing in a Diversified Alberta Economy Act (Part 2.1) and the Agri-processing Investment Tax Credit Regulation
Partnerships may apply if they:
- are registered under Alberta's Partnership Act
- are not LLPs
- submit a partnership agreement
- meet all the eligibility conditions set out in the Investing in a Diversified Alberta Economy Act (Part 2.1), the Agri-processing Investment Tax Credit Regulation and the Agri-Processing Investment Tax Credit Amendment Regulation (pages 9 to 23, The Alberta Gazette, Part II, Nov. 30, 2024)
Eligible projects and expenses
Projects
For a project to be considered for the program, a corporation or registered partnership must invest at least $10 million in a value-added agri-processing facility in Alberta. The investment could:
- build and operationalize a new facility, or
- expand an existing facility and increase production
When the project is complete, the facility must produce a new or upgraded product by physically transforming or upgrading:
- any raw or primary agricultural product
- any agricultural by-product or waste
- previously transformed or upgraded product
Expenses
The investment must be for new capital expenditures such as land, facility construction and processing equipment. These expenses have to occur on or after February 7, 2023 and meet the conditions in the Investing in a Diversified Alberta Economy Act (Part 2.1).
Ineligible projects and expenses
The program will not consider:
- projects structured through joint ventures or unregistered partnerships – eligible corporations within these business arrangements may apply individually
- capital expenses for equipment and facilities that only clean, bag, handle, store and sort product
- primary agriculture projects to build or expand greenhouses and vertical farms, or grow or harvest crops
How to apply
Corporations and registered partnerships may apply to the program using one application.
Step 1. Apply for conditional approval
Get ready to apply online by:
- reviewing the Agri-Processing Investment Tax Credit program guidelines
- completing the Proposed Investment Plan form
- getting an engineering estimate prepared by a 3rd party (minimum Class 4)
- including the partnership agreement(s) if applicable
Apply for conditional approval online and submit the required documents using the online form below.
Step 2. Report progress
After receiving conditional approval, applicants must provide progress updates every 180 days until the project is complete.
Prepare project status reports using the documents the program provides:
- a progress reporting schedule
- the approved investment plan
- a pre-populated form that will be sent 30 days before the reporting due date or complete the blank Status Reporting form
Submit the completed Status Reporting form to [email protected].
Step 3. Apply for the certificate
When the project is complete and the new facility or expansion is operational, applicants may apply for the Agri-Processing Investment Tax Credit Certificate. Based on this information and eligibility requirements, applicants may receive full, reduced or no tax credits.
Apply for the certificate by providing:
- a compliance report on capital expenditures
- a baseline and a follow-up report to show an expansion project increased productivity (not required for new build projects)
- a real estate appraisal, if needed
- a completed APITC Certificate Application Form
Submit the completed application form and supporting documents to [email protected].
After receiving the certificate
When corporations receive the Agri-Processing Investment Tax Credit Certificate for a full or reduced tax credit, they have 10 years to claim it against their Alberta corporate taxes. The maximum amount of the APITC that can be claimed in the first 3 years is:
- up to 20% in the first year
- up to 30% in the second year
- up to 50% in the third year
Online form
Contact
Connect with the Agri-Processing Investment Tax Credit program:
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Toll free: 310-FARM (3276) (in Alberta)
Phone: 403-742-7901
Email: [email protected]
Related
- Sustainable Canadian Agricultural Partnership in Alberta grant programs