and Revenue Administration
Corporate Tax Act
Special Notice Vol. 5 No. 46
||June 22, 2017
||Alberta Treasury Board and Finance, Tax and
|For more information:
5 No. 46 / June 2017
BILL 30 − CORPORATE TAX AMENDMENTS
NOTE: This special notice is intended to explain legislation and provide specific information. Every effort has been made to ensure the contents are accurate. However, if a discrepancy should occur in interpretation between this special notice and governing legislation, the legislation takes precedence.
Bill 30, Investing in a Diversified Alberta Economy Act, received Royal Assent on December 9, 2016. The bill included amendments to the Alberta Corporate Tax Act (the Act), as explained below.
New Tax Credits for Corporations
Bill 30 has established two non-refundable tax credits for corporations. Section 25.01 has been added to the Act to implement the Alberta Investor Tax Credit (AITC) and section 25.02 has been added to the Act to implement the Capital Investment Tax Credit (CITC). These two new tax credits are included in the Alberta Jobs Plan, which was introduced as part of Budget 2016.
The application processes for the AITC and CITC are administered by Alberta Economic Development and Trade, which will issue to eligible applicants certificates indicating the amount of the respective tax credit to which the corporation is entitled.
Corporations entitled to an AITC or CITC may deduct the respective tax credit from tax payable in a taxation year, to a maximum of tax payable calculated before deducting the respective credit. In general, the AITC is the total of all amounts shown on all of the investor tax credit certificates issued to the corporation for share purchases made during the taxation year, and the CITC is the total of all amounts shown on all of the capital investment tax credit certificates issued to the corporation for acquisitions of eligible qualified property made during the taxation year.
In the event a corporation is entitled to both an AITC and a CITC in the same taxation year, the AITC must be deducted from tax payable before the CITC is deducted. Unused AITC may be carried forward four taxation years and unused CITC may be carried forward 10 taxation years.
The amount of AITC or CITC that a corporation is entitled to deduct from tax payable is calculated on AT1 Schedule 3 and reported on line 076 of Form AT1, Alberta Corporate Income Tax Return. Both of these forms are available on the Corporate Income Tax Forms page.
Corporations that use certified software to complete and file Form AT1 should, prior to deducting an AITC or CITC, ensure that the software has been updated to include the new AT1 Schedule 3. Otherwise, the tax credits may be claimed by submitting AT1 Schedule 3, separately to Tax and Revenue Administration, by mail or fax.
For additional information on the AITC, CITC and the Alberta Jobs Plan, please refer to the Government of Alberta website at https://www.alberta.ca/alberta-jobs-plan.aspx.