EDMONTON – BUSINESS – 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. 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,” states Deron Bilous, Minister of Economic Development and Trade.
Examples of 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.
Similar credits have been available in Manitoba and the Maritime provinces for several years.
“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,” shares Barb Davies, co-founder and director, Local Investing YYC.
“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,” comments Jeff Loomis, executive director, Momentum.
The program budget is $9 million over three years. 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.
