2018 Alberta provincial budget tax highlights

March 23, 2018 Michelle Seymour, Director, Tax and Business Succession Planning

2018 Alberta Provincial Budget Tax Highlights

The President of the Treasury Board and Minister of Finance, Joe Ceci, presented the 2018-2019 provincial budget on Thursday, March 22. No changes were announced in the budget with respect to personal or corporate tax rates. As such, rates remain as follows: 

 
2018 Personal Taxable Income Bracket                     Alberta Tax Rate
$18,915 - $128,145                                   10%
$128,145 - $153,773                                    12%
$153,773 - $205,031                                    13%
$205,031 - $307,547                                    14%
$307,547 +                                    15%
Corporate Taxes                                                               Alberta Tax Rate
Small business                                                                                2%
General corporate                                                                               12%
Other                                                                        Alberta Tax Rate
Carbon Levy                                                                                        $30 / tonne

Tax Credits

The budget highlighted the new Interactive Digital Media Tax Credit as well as additional funding for the Capital Investment Tax Credit and Alberta Investor Tax Credit. These measures were previously announced last week as part of Bill 2: The Growth and Diversification Act.

Interactive Digital Media Tax Credit

This new tax credit proposes to provide interactive digital media companies with a 25% refundable tax credit for eligible salaries and wages as well as an additional credit for companies that hire individuals from under-represented groups. A similar tax credit exists in a number of other provinces including BC and Ontario.

Capital Investment and Alberta Investor Tax Credits

These tax credits were both originally announced in the 2016-2017 provincial budget for a timeframe of two and three years respectively. The government now proposes to extend these programs to 2021-2022.

The Capital Investment Tax Credit provides a 10% non-refundable tax credit to manufacturing, processing and tourism businesses making capital expenditures, such as the purchase of machinery, equipment and buildings, of at least $1,000,000.

The Alberta Investor Tax Credit currently provides a 30% tax credit to investors in Alberta small businesses engaged in:

  • Research, development, or commercialization of new technology, products or processes
  • Interactive digital media and game product development
  • Video post-production, visual effects and digital animation
  • Tourism activities

The government proposes to provide an additional 5% tax credit for investments in companies where the majority of the board of directors, including the CEO, are members of an underrepresented group.

For further details regarding these and other budget initiatives, please refer to the government of Alberta webpage​.

The information provided in this article is a simplified general summary and is not intended to replace or serve as a substitute for professional advice. Professional tax advice should always be obtained when dealing with taxation issues as each individual’s situation is different. This information has been obtained from sources believed to be reliable but no representation or warranty, expressed or implied, is made as to their accuracy or completeness. This information is subject to change and ATB Securities Inc. (Member Investment Industry Regulatory Organization of Canada and Canadian Investor Protection Fund), ATB Investment Management Inc. and ATB Insurance Advisors Inc. reserves the right to change the information without prior notice, and does not undertake to provide updated information should a change occur. ATB Financial, ATB Investment Management Inc., ATB Securities Inc. and ATB Insurance Advisors Inc. do not accept any liability whatsoever for any losses arising from the use of this document or its contents.

ATB Investment Management Inc. (ATBIM), ATB Insurance Advisors Inc. (ATBIA) and ATB Securities Inc. [(ATBSI) – Member, Investment Industry Regulatory Organization of Canada; Member, Canadian Investor Fund] are wholly owned subsidiaries of ATB Financial. ATBIM, ATBIA and ATBSI are licensed users of the registered trademark ATB Investor Services.

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