Alberta Agri-Processing Investment Tax Credit (APITC)

• 12% non-refundable, non-transferable tax credit on eligible investments of $10 million or more per project.
• Maximum of $175 million in tax credits available for each project.
• Tax credit may be claimed over a period of 10 years against Alberta corporate income tax.
• Claiming limits: up to 20% in the first year, up to 30% in the second year, and up to 50% in the third year.

• The applicant must be a corporation incorporated, registered, or continued under Alberta’s Business Corporations Act, or a registered partnership under Alberta's Partnership Act (excluding LLPs).
• The applicant must operate in value-added agri-processing sectors such as food, beverage, meat, alternative protein, animal feed, bioproducts, biomaterials, and other value-added agricultural product manufacturing.
• The project must involve building or expanding a value-added agri-processing facility in Alberta, resulting in the production of new or upgraded products through physical transformation or upgrading of agricultural products or by-products.
• The applicant must meet all eligibility conditions outlined in the Investing in a Diversified Alberta Economy Act and the relevant Agri-processing Investment Tax Credit Regulations.

Who is eligible?

• Food, beverage, meat, alternative protein and animal feed manufacturing companies
• Biofuel, biomass, sustainable aviation fuel, and biochemical producers
• Bioplastics, biocomposites, biomaterials, textiles, fibre, building products, and automotive parts manufacturers
• Cosmetics, ingredients, personal care, and natural health products producers
• Corporations and registered partnerships engaged in value-added agricultural product processing

Who is not eligible

• Projects structured through joint ventures or unregistered partnerships.
• Limited Liability Partnerships (LLPs).
• Companies with capital expenses for equipment and facilities that only clean, bag, handle, store, and sort product.
• Primary agriculture businesses focused on building or expanding greenhouses and vertical farms, or growing or harvesting crops.

Eligible expenses

• New capital expenditures for land dedicated to the agri-processing facility.
• Construction costs for building new facilities or expanding existing agri-processing facilities.
• Purchase and installation of processing equipment.

Eligible geographic areas

• Companies operating and investing in Alberta.

• Step 1: Apply for Conditional ApprovalReview the Agri-Processing Investment Tax Credit program guidelines.
• Complete the Proposed Investment Plan form.
• Obtain an engineering estimate prepared by a third party (minimum Class 4).
• Include the partnership agreement(s) if applying as a partnership.
• Apply for conditional approval online and submit the required documents using the online form.
• Step 2: Report ProgressAfter receiving conditional approval, provide project progress updates every 180 days until the project is complete.
• Prepare project status reports using the provided documents: progress reporting schedule, approved investment plan, and a pre-populated or blank Status Reporting form.
• Submit completed Status Reporting forms to APITC@gov.ab.ca.
• Step 3: Apply for the CertificateWhen the project is complete and operational, apply for the Agri-Processing Investment Tax Credit Certificate.
• Provide a compliance report on capital expenditures, a baseline and follow-up report (if applicable), a real estate appraisal (if needed), and the completed APITC Certificate Application Form.
• Submit the application form and supporting documents to APITC@gov.ab.ca.
• Step 4: Claim Tax CreditAfter receiving the certificate, claim the tax credit against Alberta corporate taxes within the 10-year claim period, according to the allowed percentages for each year.

• Up to $175 million in tax credits is available for each project.
• The tax credit is non-refundable and non-transferable.
• Eligible recipients have up to 10 years to claim the tax credit against Alberta provincial income tax.
• The maximum claimable amount for the tax credit is tiered: up to 20% in the first year, 30% in the second year, and 50% in the third year after receiving the certificate.