Seven Generations Energy building a natural gas processing facility in Montney Kakwa River area
Editors note: In an interview with Seven Generations, they stated that the natural gas processing facility is already under construction, and the Alberta tax credit did not have an impact on decision to build the facility, as it was already part of its natural growth plan.
A new natural gas processing facility is the type of investment Alberta hopes to with the new Capital Investment Tax Credit (CITC), which has a ceiling of $5 million per company, according to an Alberta Government press release.
The tax credit helps Alberta companies take on new construction projects by returning up to 10 per cent of the costs of new machinery, equipment or buildings to a maximum of $5 million.
Businesses can claim the credit once the assets they purchased are in use and the company is profitable and paying taxes.
“We’re proud to have created a tax credit that helps businesses in Alberta create good jobs in a variety of sectors – diversifying our economy and helping protect us from the oil price roller-coaster. Other provinces have had tax credits like this for decades,” said Deron Bilous, minister of economic development and trade.
“Per capita private-sector investment in Alberta rose to more than twice the national average last year, during the first round of our CITC. We will keep building on that momentum.”
Seven Generations Energy, a liquids-rich natural gas developer, received conditional approval of a $5-million tax credit to build a natural gas processing facility in the Montney Kakwa River area. The project will create about 150 construction jobs and dozens of direct permanent jobs once operational.
The total value of the first two rounds of credits is about $62 million. The third CITC intake window opened on Jan. 15 and will run to March 16, 2018 and companies can follow this link to apply.
“Our new facility will increase our wholly owned processing capacity by about 50 per cent, creating good new jobs. We’ll be using leading technology to turn Alberta natural gas into a variety of world-class energy products to help grow our province’s northern economy,” said Glen Nevokshonoff, COO, Seven Generations Energy.
So far, 18 businesses from a variety of sectors taking advantage of the second intake. The intake is a competitive process where the companies that show the best possible results following a criteria will be accepted.
The criteria for acceptance follows a dozen factors, ranging from size and timeliness of investment to employment impacts and supply chain impacts that favour Alberta companies.
New projects include building a cannabis manufacturing and processing facility, a skydiving facility, a craft brewery and tap room, a biofuel facility and a glass factory. Expansion projects include upgrades at a precision machining shop, a trailer manufacturer, a metal manufacturing plant and pulp mills.