Alberta Corporate Tax Breaks Since 2023 — What is really happening between the government and corporate sheets?
<10 Minute Read
Like relationships in the real world, we may never truly know the size of the government “pen” that drafted the policies but what is out there, including information that hasn’t been blacked out or redacted to nothingness through a FOIP request - is up for grabs.
Today, we're looking into three government programs and the corporate income tax rate: The Agri-Processing Investment Tax Credit (APITC), Film and Television Tax Credit (FTTC), Innovation Employment Grant (IEG), and the 8% General Corporate Income Tax Rate.
Let’s start with some “kickers” to get the party started, if you have the cash to get into the club and benefit that is.
“Bring Your Own Millions” — If you can swing $10 million, Alberta will meet you at the register with a 12% coupon. APITC’s $10‑million cover charge ensures only the well‑capitalized get into the party.
“The Refundability Rave” — In film/TV, Alberta doesn’t just smile at you. It writes you a cheque (that’s what a refundable credit is). Refundable film credits aren’t a discount — they’re cash. That’s why big productions pay attention. You may be thinking how many movies, shows and films are filmed in Alberta and why is this even a “thing”? I know we deep-dive this early but it’s Hollywood knocking on the door!
On the latest (somewhat) reliable counts, film & TV is adding ~$450M a year to Alberta’s GDP (province-wide), with thousands of jobs, and Calgary alone logged $372M / 4,483 jobs in 2024. High-profile shows can deliver nine-figure GDP boosts on their own (e.g., The Last of Us). This is great but…
Alberta’s refundable Film and Television Tax Credit (FTTC) pool has been ~C$95–105M per year recently, with headline cases like The Last of Us drawing tens of millions (from a mix of Alberta + federal incentives), and mid-tier series like Joe Pickett getting ~C$9M+ provincially.
What the heck is the FTTC pool?
In Alberta, it’s the refundable tax credit paid to screen productions for a percentage of eligible Alberta production costs. The “pool” of money is annual budgeted amount the Alberta government sets aside (in its fiscal plan/tax-expenditure tables) for the Film & Television Tax Credit across all productions. This pool amount gives a sense of scale —how much money the government of Alberta expects to flow to productions via the FTTC in that year (credits + refunds).
If you see this pool amount rising dramatically, there may be some big Hollywood-Esque things heading Alberta’s way.
So, The Last of Us received “close to C$40M in tax incentives,” a significant share is actual cash refunds, not just smaller tax bills under this program.
We’ll stop our tailspin into the Hollywood ‘Esque corporate world and The Last of Us (a post-apocalyptic series set in a zombie-like, fungal-infected United States 20 years after a pandemic destroyed society) series, partly filmed in Alberta.
"8% Happy Hour” — The lowest corporate tax rate in Canada, and that’s before the coupons. Alberta’s 8% corporate rate makes every targeted credit a super‑discount for firms big enough to qualify.
Let’s get into the dirty, looking into the claims the Government of Alberta is in bed with industry and delivering “corporate welfare” to the richest of companies.
Since 2023, Alberta has rolled out or expanded multiple corporate tax incentives that primarily benefit larger, well‑capitalized companies (with plenty of money and a low risk of running out of cash) across several sectors.
Programs like the Agri‑Processing Investment Tax Credit (APITC, 2023), Film & Television Tax Credit (FTTC, funding boost 2023; rule updates 2024), Innovation Employment Grant (IEG, ongoing), alongside Alberta’s low general corporate income tax rate (8%).
So what? These policies lower the effective tax burden for companies that qualify and critics say that’s a tax break for big firms with uncertain public payoff.
Quick Timeline (2023–2025) Recap and Key Events
2023 (Budget) → APITC created: 12% non‑refundable credit for $10M+ agri‑processing capital projects that can carry‑forward up to 10 years, which means companies can claim the credit against regular income for up to 10 years.
What does this mean? A 10-year window reduces the “cash-grant” feel of corporate welfare and better fits capital-intensive projects (requires a BIG upfront money for things like land, machinery, and equipment to produce goods or services the company delivers) but it still functions as a substantial, long-term subsidy (money benefits given by the government to the company to alleviate burdens or promote economic and social policies – the government created) that primarily benefits firms large enough to generate significant Alberta profits later.
If the government wanted a tighter balance, policy levers include: shorter carry-forward, per-project caps, clawbacks tied to jobs/output, and transparent reporting on credits claimed over time. Just a couple policy / program suggestions – government.
Early 2023: FTTC envelope expanded (announced ~$100M over three years; widely cited aggregate planning around ~$335M over three years). Goal: attract larger‑budget productions.
June 7, 2024: FTTC amendments in force (e.g., updates around rates/eligibility, including rural/remote conditions).
2023–2025: IEG continues (8% on base R&D + 20% on incremental R&D [research and development] up to $4M, phased out for very large corporations).
Ongoing: Alberta maintains a general corporate income tax rate of 8% (lowest among provinces), amplifying the impact of credits.
In Summary - What does the best available information say?
APITC (The Agri-Processing Investment Tax Credit)
12% non‑refundable corporate tax credit; applies to eligible capital costs for $10M+ value‑added agri‑processing projects.
Unused credits: carry‑forward up to 10 years.
FTTC (Film and Television Tax Credit)
Refundable credit on eligible Alberta production costs (commonly 22% or 30% tiers, depending on conditions).
2023: Government adds $100M over three years to program capacity; public discussion often cites ~$335M total certificate issuance over three years.
2024: Rule amendments in force (applications ongoing under revised framework).
IEG (Innovation Employment Grant)
Refundable grant delivered via the corporate tax system: 8% base R&D + 20% incremental R&D (annual cap $4M eligible spending).
Phases out for corporations with high taxable capital; targeted at small/medium firms but still a corporate‑facing subsidy.
8% Corporate Rate Context
Alberta’s 8% general corporate income tax rate (unchanged since 2020) remains the lowest in Canada; makes targeted incentives even more potent.
What does it mean? APITC and FTTC skew toward large balance sheets (big capex or large productions). IEG is small-medium company leaning but still reduces corporate tax burden. Overall effect: lower effective rates, especially for firms with scale.
What do Think Tanks & Academics (Nerds, Policy Wonks) Say?
nerd /nərd/ proudly identifying “nerd” as a positive trait, a reclaimed word.
Parkland Institute (University of Alberta‑affiliated research centre)
Report Job Creation or Job Loss? analyzes Alberta’s corporate tax cuts; argues internal government advice warned promised gains were exaggerated.
Highlights (2019–2021): major oil sands firms collectively received more from the tax system than they paid in, implying net subsidies during that period.
Net Subsidies: Not what government gives - what the big companies actually keep. In the context of corporate welfare math: money in, minus the polite ‘give some back’.
Blanket corporate giveaways often benefit incumbents and shareholders over workers/communities.
Fraser Institute (market‑oriented think tank)
Critiques “corporate welfare” on efficiency grounds; argues that eliminating subsidies could finance broader tax relief (e.g., personal tax cuts).
Notes the scale of corporate subsidies can run into the billions, pointing to Alberta’s long history of firm‑specific or sector‑specific supports.
Better Way Alberta (advocacy coalition)
Calls for revenue reform: reduce/abolish subsidies and loopholes for highly profitable corporations; redirect fiscal room to public services and/or more fair tax design.
Parkland and Fraser don’t “love” each other but there’s rare agreement on a core point.
Targeted corporate incentives often have weak or uncertain return on investment for the public. Disagreement is mostly on what to do instead (industrial strategy vs. broad tax cuts vs. public investment).
Good start Parkland and Fraser, let’s take that as a small “win” on the agreeable point and build on that to figure out the rest.
Let’s end off with a highlights Q&A.
Are these programs illegal ‘corporate welfare’?
No, these are all done with legal policy tools (legal as in, made legal through policy, created and implemented by the government), widely used across provinces and states (that’s the United “States” of America, hint, hint). The debate is about effectiveness and fairness, not legality.
Do small businesses benefit?
The IEG helps SMEs (Small to Medium Enterprises, “Small” is fewer than 100 employees, “Medium” is enterprises that have 100 to 499 employees) with R&D (Research and Development). However, APITC and FTTC skew toward larger players due to investment size and scale requirements.
When people say, “small businesses” and they mean the shop owner on the block where 4 people work in total, including the owner. No, there is no benefit to anyone in this boat from any of these programs directly. Indirectly, we’re talking spin-offs here, yes there would be, potentially, maybe.
Is there proof of jobs created?
Government program pages highlight investment and spinoffs. Critical analyses (e.g., Parkland) argue results are over‑promised and sometimes offset by automation.
Government Playbook: The Fine Print Matters
The Government of Alberta’s playbook since 2023 is simple: keep the corporate tax rate at 8% and layer on targeted incentives. The fine print matters: “refundable” often means cash out the door, high minimums tilt access toward well-capitalized players (the “rich” companies and by default individuals that run those companies from their ivory towers), and the benefits stack on top of an already low baseline rate. The public return on investment is real in places but it’s mixed and uneven, and the reporting is patchy enough that every side can find a number to love.
In practice, we’re in a “subsidy arms race” with other provinces / territories and states. Big productions and big plants chase the richest combo of credits; governments chase the headlines. Meanwhile, smaller firms mostly watch from the cheap seats unless a program is built for them. The opportunity cost is the quiet part: every dollar in credits is a dollar not available elsewhere unless revenues rise.
So, the answer is boring and necessary: keep the tools, tighten the rules. Demand clearer per-project reporting, clawbacks for missed promises, sunsets and independent evaluations, and a bias toward programs that scale to more than just the biggest balance sheets. Call it what you like - industrial policy or corporate welfare - but let’s at least make it transparent, conditional, and worth it for all Albertans.
In today’s tangle of government programs, policy tweaks, accounting conventions, and selective “values” narratives, it isn’t possible to publish perfectly precise, audit-ready numbers here. Budgets are forecasts, tax credits are calculated on evolving eligibility rules, per-production amounts are often confidential, and federal-provincial stacking is reported differently across sources and fiscal years. We’ve relied on the most current official documents and credible analyses available at publication, but all figures should be read as directional ranges, not exact tallies - accurate in story, approximate in integers.
This Bloody Business article is for everyone. It is written to boost the "business of government" literacy so that anyone, not just insiders, can follow the money, weigh the trade-offs, and hold policy to account. Clear policy, smarter citizens, better outcomes.
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Footnotes & Sources
- Government of Alberta — Alberta Agri‑Processing Investment Tax Credit (APITC) (program overview): https://www.alberta.ca/alberta-agri-processing-investment-tax-credit
- Government of Alberta — Agri‑processing Investment Tax Credit portal: https://agriprocesstaxcredit.alberta.ca/
- Government of Alberta — Film & Television Tax Credit (FTTC) (official page; notes amendments in force June 7, 2024): https://www.alberta.ca/film-television-tax-credit
- Government of Alberta — FTTC Program Guidelines (PDF, Nov 15, 2024): https://www.alberta.ca/system/files/jet-fttc-program-guidelines.pdf
- Government of Alberta — Funding & incentives for film projects (FTTC summary): https://www.alberta.ca/funding-and-incentives-for-film-projects
- Government of Alberta — Taxes & levies overview (general corporate income tax 8%, small business 2% with history): https://www.alberta.ca/taxes-levies-overview
- Government of Alberta — Innovation Employment Grant (IEG) (program page): https://www.alberta.ca/innovation-employment-grant
- Government of Alberta — Guide to Claiming the IEG (PDF, Apr 7, 2025): https://www.alberta.ca/system/files/custom_downloaded_images/tra-guide-claiming-the-innovation-employment-grant.pdf
- Parkland Institute — Job Creation or Job Loss? (landing page summary): https://www.parklandinstitute.ca/job_creation_or_job_loss
- Parkland Institute — Job Creation or Job Loss? (full report PDF): https://assets.nationbuilder.com/parklandinstitute/pages/1984/attachments/original/1664129845/parkland-report-job_creation_or_job_loss.pdf?1664129845=
- Parkland Institute — Big Companies Use Tax Cut to Automate Away Jobs in the Oil Sands (media release/blog): https://www.parklandinstitute.ca/media_big_companies_use_tax_cut_to_automate_away_jobs_in_the_oil_sands
- Fraser Institute — Alberta government can deliver tax cut by ending corporate welfare (Jan 10, 2025): https://www.fraserinstitute.org/commentary/alberta-government-can-deliver-tax-cut-ending-corporate-welfare
- Fraser Institute — Alberta government should eliminate corporate welfare (May 1, 2024): https://www.fraserinstitute.org/commentary/alberta-government-should-eliminate-corporate-welfare-generate-benefits-albertans
- Better Way Alberta — Revenue Reform (Issue Report PDF): https://betterwayalberta.ca/wp-content/uploads/2022/11/BWA_IssueReport_Revenue_Reform.pdf
- Government of Alberta — Corporate Income Tax Special Notice (Accelerated Job Creation Tax Cut to 8% effective July 1, 2020): https://open.alberta.ca/publications/corporate-income-tax-special-notice-vol-5-no-58-accelerated-job-creation-tax-cut
Caveats
- Program rules change; always check the current government page before citing.
- “Net benefit” claims depend on counterfactuals (what would have happened without the credit), which are inherently uncertain.
- Alberta is competing with other jurisdictions that offer similar or richer incentives; this arms race shapes policy choices.