In news that will be music to the ears of Alberta’s struggling economy, the Premier announced this month that the corporate tax rate will be cut from 10 to 8 percent. Adding to that good news, Premier Jason Kenney announced an infrastructure spending spree of $10 billion, initially earmarked for roads, hospitals, schools, pipelines, and water projects.
Details regarding the ramped-up infrastructure spending are scarce at this time, but according to a government of Alberta press release, large scale infrastructure projects will be ready to launch as soon as this summer, with the potential to create over 2,500 jobs. In an effort to keep these jobs in the hands of Albertans and Canadians, Premier Kennedy announced a steep reduction to those allowed into Alberta through the Temporary Foreign Worker Program.
Premier Kenney also announced that the Province will create a new Crown Corporation aimed at driving investment into the Alberta economy. Premier Kenney has called this “Invest Alberta Corporation” and will be seeking investment from both Bay Street and Wall Street partners, touting the low corporate tax rate and ample opportunity to avail of the massive boost in infrastructure spending.
For the construction industry in Alberta and the rest of Canada, this should serve as notice to consider how they can get in on what could be a major opportunity in Canada’s wealthiest province. Alberta has a history of bouncing back from turmoil and it seems like this crisis is no different.
Written by Jeremy Power, a lawyer in Cotney Construction Law’s Toronto office.