Alberta’s government is supporting the energy industry and municipalities to attract investment and create good jobs while delivering certainty for investors and taxpayers as Alberta recovers from the COVID-19 pandemic.
Supports to energy companies will include an exemption from property taxes for three years when drilling new wells and building new pipelines. The government will also eliminate the Well Drilling Equipment Tax provincewide for new drills.
Additionally, the government will lower assessments for less productive oil and gas wells while continuing the recently introduced 35 per cent assessment reduction on shallow gas wells for three years. These measures are to provide much-needed certainty to industry, investors, municipalities and other taxpayers now and into the future.
Arriving at a solution that benefits both rural municipalities and the energy industry is the result of a commitment to consult with and listen to our partners in both sectors. In the coming months, the government will be developing a plan for longer-term reviews of the regulated assessment system and remains committed to continued consultations and open dialogue.
“We are acting now to encourage new oil and gas development that will create jobs and boost Alberta’s recovery. Alberta needs to be as competitive as possible to attract investment into our communities. We know our municipal partners are committed to do their part to create jobs and support Albertans through this challenging economic time. We are working to secure a brighter future for our province by supporting both industry and communities,” said Tracy Allard, Minister of Municipal Affairs
“AUMA is encouraged Alberta’s government listened to feedback from municipalities and understands the importance of striking a balance between local government costs and industry competitiveness. We were pleased to be engaged in the consultation process and on working to strengthen the partnership between the province and municipalities,” said president of the Alberta Urban Municipalities Association, Barry Morishita.
Through extensive consultations with municipalities across the province, Alberta’s government heard loud and clear that now is not the time to make comprehensive changes to the way it assesses oil and gas wells, the machinery and equipment at these wells, and the pipelines associated with them. Today’s announcement reflects our continued commitment to working with and listening to our municipal and industry partners.
Alberta’s Recovery Plan is a bold, ambitious long-term strategy to build, diversify, and create tens of thousands of jobs now. By building schools, roads and other core infrastructure we are benefiting our communities. By diversifying our economy and attracting investment with Canada’s most competitive tax environment, we are putting Alberta on a path for a generation of growth. Alberta came together to save lives by flattening the curve and now we must do the same to save livelihoods, grow and thrive.