Alberta Budget 2024: Tax Credits, Sustainability Grants, and More

Alberta’s fiscal plan for 2024 underscores a commitment to fortify healthcare and education, foster secure and supportive communities, manage provincial resources, and stimulate job creation to enhance Alberta’s competitive standing. This budget remains dedicated to fiscal responsibility and the effective provision of public services, acknowledging and addressing the evolving needs of Alberta’s expanding population. 

The 2024 Budget for Alberta dives into new tax credits and updates in funding programs across different industries.  

The Budget includes investments in healthcare, education, and clean technology. It also talks about the province’s capital investments.  

The Budget is divided into further sections including:  

• Strengthening the province’s health care and education;
• Building safe and supportive communities;
• Managing the province’s resources wisely; and
• Promoting job creation to continue to build Alberta’s competitive advantage. 

This article from Mentor Works, a Ryan Company focuses on the Alberta business funding takeaways from the provincial budget 2024. 

Learn more about the Canadian Federal Budget 2024 and other provincial budgets on our 2024 Budget Overview Page. 

Find out more about the various Alberta provincial funding programs announced in this budget by clicking on one of the links below to scroll down to the appropriate section. 

Alberta Sustainability & Critical Mineral Funding 

The Alberta Carbon Capture Investment Program (ACCIP) and the Alberta Petrochemicals Incentive Program (APIP) are key initiatives aimed at promoting environmental sustainability and economic growth in Alberta’s energy sector. Here’s a breakdown of the key business funding programs included in the Alberta Budget 2024:  

Alberta Carbon Capture Investment Program (ACCIP):  

The ACCIP is a ground-breaking initiative aimed at supporting and accelerating the development of Carbon Capture, Utilization, and Storage (CCUS) technologies. By providing incentives for facilities to integrate emission reduction measures, the program not only contributes to environmental sustainability but also generates job opportunities for Albertans.  

• Incentives for Emission Reduction: The ACCIP offers a substantial 12% grant for eligible CCUS capital costs, providing a significant financial boost for projects committed to reducing emissions. This incentivizes industries to adopt environmentally responsible practices.  
• Federal Support Alignment: Funding from the ACCIP is contingent upon the federal government legislating its investment tax credit (ITC) for CCUS. This strategic alignment ensures clarity on the expected operation of the federal ITC and the availability of additional federal programs to further support these initiatives.  

In the evolving landscape of government funding programs, the Alberta Carbon Capture Investment Program (ACCIP) emerges as a beacon for local businesses seeking not only financial support but a chance to actively contribute to environmental sustainability and job creation.  

Get to know more about when your business should apply for funding by downloading our free When to Apply for Canadian Government Funding PDF guide.  

  

Alberta Petrochemicals Incentive Program (APIP) 

Introduced in 2020, the APIP plays a pivotal role in positioning Alberta as a global leader in petrochemical production. The program aims to foster growth in the petrochemicals sector by providing grants equivalent to 12% of a project’s eligible capital costs.  

• Global Competitiveness: APIP grants are a catalyst for attracting investments, with applications received representing a staggering total potential of $39 billion. In the upcoming fiscal year (2023-24), three projects are anticipated to receive APIP grant payments totaling $116 million.  

The APIP presents a compelling opportunity for local businesses to thrive in the competitive realm of petrochemicals while contributing to Alberta’s economic development.  

Ongoing Initiatives for Energy and Minerals Development:  

Beyond these highlighted programs, the government continues to offer various initiatives to advance both primary and value-added energy and minerals development. These include the Natural Gas Vision and Strategy, the Hydrogen Roadmap, and the Minerals Strategy. These comprehensive strategies collectively support the development of natural gas, LNG, hydrogen, ammonia, recycled plastics, geothermal resources, helium, lithium, and other minerals, driving investment, job creation, and fostering Alberta’s current and future growth.  

In navigating these government-funded initiatives, our dedicated team at Mentor Works, a Ryan Company is ready to assist you in navigating the intricacies of grant applications and maximizing the opportunities presented by these transformative programs. Speak with a member of our team to find out if you qualify to receive funding.  

Alberta Clean Tech Funding  

As stated in Budget 2024, the Technology Innovation and Emissions Reduction (TIER) and the Alberta Methane Emissions Reduction Regulation programs continue to protect Alberta’s competitiveness and drive investments in clean technology. The TIER Program is a pioneering initiative dedicated to advancing emissions reduction technologies and fostering innovation in Alberta. It serves as a strategic framework to drive environmental sustainability while promoting technological advancements. 

• Financial Incentives for Emission Reduction: An integral aspect of the TIER Program is providing substantial financial incentives for implementing emission reduction measures. Through these incentives, the program encourages industries to adopt cutting-edge technologies and practices to reduce their carbon footprint. 
• Strategic Alignment with Federal Initiatives: The TIER Program’s success is contingent upon alignment with federal initiatives, ensuring a cohesive approach to emissions reduction. This strategic alignment includes synchronization with federal investment tax credits (ITC) for emissions reduction projects. 
• Inclusive Funding Support: The TIER Program allocates nearly $600 million over three years to support a range of programs. These initiatives are dedicated to emissions reduction, clean technology development, job creation, and bolstering climate resiliency in Alberta. Partnerships with key organizations, such as Emissions Reduction Alberta and Alberta Innovates, contribute to the program’s comprehensive funding support. 
• Future Outlook and Expansion: With a forecasted $226 million available in the TIER Fund by the end of 2023-24, the program is poised to fund future initiatives like the Alberta Carbon Capture Incentive Program (ACCIP). An additional $167 million is allocated to ACCIP from the TIER Fund over the next three fiscal years (2024-25 to 2026-27). As of 2024-25, should TIER Fund revenue exceed $100 million, 25 percent of the excess amount beyond $100 million will be allocated to support ACCIP. 

In navigating the landscape of environmental initiatives, the Alberta TIER Program emerges as a forward-thinking platform, offering financial support and opportunities for active engagement in emissions reduction and technological innovation. 

Explore our Cleantech Funding directory to find existing funding programs that can cover costs for your next cleantech business project. 

Tourism in Alberta 

The Ministry of Tourism and Sport plays a crucial role in fostering the growth and diversification of Alberta’s tourism industry. Its initiatives focus on developing programs and services that offer Albertans options for physical activity. Additionally, the Ministry is committed to supporting the development of Alberta’s amateur athletes at provincial, national, and international levels. 

• Operating Expense Allocation for 2024-25: The operating expense for the fiscal year 2024-25 is set at $126 million, marking a notable increase of $14 million or 12.7% over the forecast for 2023-24. Within this allocation, the Travel Alberta Corporation receives a notable $8 million increase. This additional funding is earmarked for the implementation of the 10-year Tourism Strategy, emphasizing support for air access and resort development. 
• Strategic Funding for Key Events: The Ministry continues to allocate funding for significant events, including ongoing support for the Canadian Finals Rodeo and Hockey Canada. This funding encompasses preparations for the 2027 International Ice Hockey Federation World Junior Championship, displaying the commitment to fostering sports excellence and hosting international sporting events. 

In the pursuit of enhancing Alberta’s tourism landscape and promoting active lifestyles, the Alberta Ministry of Tourism and Sport allocates resources strategically, supporting key initiatives that contribute to the province’s economic and cultural vibrancy. 

Agricultural Funding Opportunities  

The Ministry of Agriculture and Irrigation is committed to supporting the growth, diversification, and sustainability of Alberta’s agriculture industry. Through strategic initiatives, the ministry aims to enhance the resiliency and prosperity of the sector. The Ministry’s operating expense budget for the fiscal year 2024-25 is set at $870 million, reflecting a noteworthy increase of $77 million or 9.7% from the 2023-24 forecast. This includes a $49 million increase in reinsurance costs for the Agriculture Financial Services Corporation. 

• Agri-Processing Investment Tax Credit: Building on Budget 2023 announcements, the government introduced the Alberta Agri-Processing Investment Tax Credit. This initiative provides a 12% non-refundable tax credit for eligible capital investments of at least $10 million in agri-processing facilities in Alberta. With up to $175 million in tax credits available for each project, the government has conditionally approved three applications, representing a total investment value of over $120 million. 
• Investment in Water Management: Budget 2024 allocates an additional $9 million in operational funding for water management in 2024-25. This includes a yearly investment of $5 million for canal maintenance, ensuring reliable and safe water supplies for Alberta farmers and communities. The Capital Plan supplements this with investments exceeding $400 million over the next three years for water management infrastructure, irrigation projects, and rehabilitation. 

The Alberta Ministry of Agriculture and Irrigation directs resources toward pivotal initiatives that promote industry resilience, sustainable practices, and economic growth. 

Download our free Agri-Business Growth Guide to learn how you can maximize your funding potential and align your agri-business projects with government grant requirements. 

  

Labor Market Strategies & Tax Credits  

In Budget 2024, Alberta’s focus includes promoting trade and investment, facilitating worker recruitment and retention, and championing the establishment of safe, fair, and healthy workplaces.  

Alberta Is Calling Bonus: $5K Refundable Tax Credit  

The Alberta government is introducing the Alberta is Calling Attraction Bonus as part of the Budget 2024 initiatives, aligning with the Alberta Job Growth and Diversification Strategy. This strategic measure aims to assist employers in attracting and retaining skilled employees crucial for the province’s ongoing success.  

• The one-time Alberta is Calling Attraction Bonus is set to commence in April 2024, providing a $5,000 refundable tax credit to individuals in eligible occupations who relocate to Alberta; 
• Eligibility criteria includes full-time employment in specified occupations, filing 2024 taxes in Alberta, and residing in the province for a minimum of 12 months; 
• Administration of the program will be handled by the Ministry of Jobs, Economy, and Trade; and 
• A total budget of $10 million has been allocated to the program, aiming to provide benefits to qualifying individuals. 

Access To Affordable Child Care  

Access to affordable and high-quality childcare is recognized as a catalyst for Albertans with young children to engage in educational pursuits, professional training, and sustained workforce participation. 

In 2021, Alberta solidified an agreement with the federal government, introducing a ‘made-in-Alberta’ plan to enhance access to affordable and high-quality childcare. This initiative led to a significant reduction in fees for Alberta parents, decreasing by 50% in January 2022 and further declining to an average of $15 per day in January 2024. The plan’s progressive trajectory aims for parents to pay an average of $10 per day for childcare by 2026. 

Supporting Aboriginal Employment and Businesses  

Budget 2024 allocates $30 million for the Aboriginal Business Investment Fund, including $8 million in new funding, to support eligible Indigenous community-owned businesses to fund capital costs associated with start-up or expansion. 

Watch this video on Hiring & Training Grants to learn about grant opportunities available to streamline the hiring process and save money. 

Infrastructure Funding Through Local Municipalities  

The Capital Plan for Budget 2024 commits $25 billion, an increase of $2 billion from Budget 2023, towards infrastructure projects. These initiatives aim to foster the growth and diversification of Alberta’s economy, reinforcing public infrastructure to provide essential services for families, communities, and businesses. 

• $2.4 billion Local Government Fiscal Framework Unveiled: The 2024-25 budget marks the inauguration of the Local Government Fiscal Framework, a monumental step towards allocating $2.4 billion over three years. This strategic move emphasizes the provincial government’s dedication to collaborating with municipalities for the development of safe, vibrant communities.  
• $60 Million for Local Growth and Sustainability: Within this comprehensive framework, a noteworthy $60 million has been earmarked over the next three years exclusively for the Local Growth and Sustainability Grant (LGSG) Program. This financial injection aims to empower municipalities in addressing unique or emergent needs and fueling economic development opportunities.  
• $1.6 Billion for Light Rail Transit Projects: The budget earmarks $1.6 billion for light rail transit projects in Calgary and Edmonton. Notably, the Calgary Blue Line receives a boost with an additional $43 million in new funding. This infusion of funds aims to enhance public transportation and connectivity within these thriving urban centers.  

In navigating the complex landscape of business funding programs, the Local Growth and Sustainability Grant Program stands out as a beacon of opportunity for local businesses in Alberta. The $60 million injection into this program underscores the province’s commitment to local development. By aligning your projects with the priorities outlined in the grant program, you not only contribute to the growth of your community but also position your business for success.  

Is your business looking to subsidize your next capital and tech adoption project? Browse our Capital and Tech Adoption Funding Directory to find a grant match that can cover your upgrade costs.  

Apply for Funding Programs in Alberta  

The Alberta Budget 2024 marks a crucial juncture for businesses and communities, responding adeptly to the current challenges posed by ongoing economic uncertainties. Demonstrating a steadfast commitment to economic vitality, environmental sustainability, and overall well-being, the array of funding programs, tax credits, and initiatives outlined in this budget are poised to shape Alberta’s trajectory. You can also learn about the Canadian Federal and other Provincial funding updates on our 2024 Budget Overview Page 

For businesses seeking to leverage these opportunities, Mentor Works, a Ryan Company, stands as Canada’s leading government grant writing service. Our team of expert grant application writers and tax credit consultants is fully equipped to navigate the intricacies of these funding programs, providing invaluable guidance throughout the application process. We are dedicated to ensuring your business optimally positions itself to secure the support it needs. 

As your strategic partner in offsetting the costs of new business growth initiatives, Mentor Works is here to propel your business towards success in the dynamic economic landscape. Reach out to a member of our funding team today to discover the grant, tax credit, or incentive programs that could elevate your business to new heights.