2023 Alberta Budget Summary

Agri-Processing Investment Tax Credit

Budget 2023 introduced a new agri-processing tax credit that will help attract large-scale investment and foster growth and diversification in the agri-food sector. The Agri-Processing Investment Tax Credit will be worth 12% of eligible capital investments of at least $10 million made on or after February 7, 2023. As a non-refundable tax credit, the incentive will offset corporate income taxes payable in Alberta, allowing corporations to benefit from the credit once they are profitable and their facility is operational. Unused credits can be carried forward for up to 10 years.

Applications for the tax credit will be accepted in Spring 2023. More information on eligible expenditures and how to apply will be made available once program regulations are brought forward.

Charitable Donation Tax Credit

The charitable donations tax credit rate on the first $200 of contributions has increased from 10% to 60%. This increase encourages Albertans to contribute to charitable causes and will come into effect for 2023.

Adoption Expense Tax Credit

The Government offers a non-refundable tax credit equal to 10% of eligible adoption expenses up to an annual maximum. The maximum allowable expenses for the credit will be increased to $18,210 for 2023, matching the federal expense threshold. After 2023, this amount will be indexed annually at the same rate as the rest of the personal income tax system.

Families

The Alberta Child and Family Benefit (ACFB) program, which provides support to lower income families, was also indexed by 6.0% starting on January 1, 2023. Benefit amounts will rise by as much as: 

• $121 for families with one child

• $198 for families with two children

• $260 for families with three children

• $307 for families with four or more children

Families will also benefit from the increase to phase-out thresholds, as the maximum benefit begins to be reduced at a higher income level. The ACFB will be indexed annually starting July 2024 for the 2024-25 benefit year.

Additional assistance measures are being proposed as follows:

• General plan to reduce daycare costs to $15 per day for 2023 and moving towards $10 per day in 2026.

• Providing all households making less than $180,000 with a $600 payment per child under 18 ($100/month for each child from January 2023 to June 2023).

Post-Secondary Students

Core measures proposed include putting a 2% cap on tuition increases starting in 2024 and introducing measures to reduce the student loan interest rate to prime. In addition, repayment assistance qualification income would increase from $25,000 to $40,000 and the grace period on student loan repayment would extend from six months post-graduation to 12 months.

For more information on the 2023 Alberta Budget, please visit the Government of Alberta’s website.

This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual tax needs. This publication is not a substitute for obtaining personalized advice.

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