The Community Economic Development Corporation, or CEDC, tax credit will benefit local investors putting money into startups or expansions of Alberta businesses. HighRiver.ca photo.
CEDC offers 30 per cent tax credit to Albertans investing in registered CEDCs
The Alberta government announced on Thursday a new tax credit that will make it easier for the province’s entrepreneurs to attract local investment to start or expand their small businesses.
The Community Economic Development Corporation (CEDC) tax credit program will offer a 30 per cent tax credit to Albertans who invest in registered CEDCs. In turn, the corporations will provide capital to Alberta small businesses and co-operatives that focus on social improvement or rural economic development.
“Entrepreneurs put a lot on the line when they start a small business and we want to make it easier for Albertans to support them,” said Deron Bilous, Minister of Economic Development and Trade.
“Much like the Alberta Investor Tax Credit, this credit helps us invest in our own backyard, benefiting businesses that tackle important challenges in our hometowns and neighbourhoods.”
The types of activities the tax credit will support include:
- A value-added agriculture business or tourism operator developing new products in a rural community.
- A business owner offering mentorship and training to employees to help them overcome employment barriers.
- A new owner carrying on the legacy of a community-based business when its original owners retire.
- A business offering affordable food products to lower-income families.
Barb Davies, co-founder and director of Local Investing YYC says “This tax credit program makes it easier for everyday Albertans to invest locally where they can experience first-hand the community-building impact money can have.”
According to a press release from the Alberta government, similar credits have been available in Manitoba and the Maritime provinces for several years.
“Community investment funds like the CEDC provide access to capital for entrepreneurs committed to operating their businesses in a way that creates a social benefit, such as employing people who often struggle to get jobs,” said Jeff Loomis, executive director at Momentum.
The program budget is $9 million over three years and application intake for the program is now open.
Additional program details, including eligibility criteria and information on when, where and how to apply, are available at alberta.ca/community-economic-development-corporation-tax-credit.aspx.