Alberta is rapidly becoming Canada’s industrial giant, with northern Alberta becoming the centre of activity.
With approximately $14 billion per year of existing activity, Alberta is also one of Canada’s major metal manufacturing centres, behind only Ontario and Quebec. Thanks to a strong demand from Alberta’s energy sector – and the oilsands development just north of the Alberta Energy Corridor – there are numerous opportunities for manufacturing companies located within our region.
Alberta consistently has the highest investment per capita among provinces. In 2008, Alberta investment per capita was $24,262, which is more than twice the national average. A total of $87 billion was invested in 2008, more than doubling the 2002 level.
- Alberta’s personal tax rates are among the lowest in Canada.
- Alberta is the only province without a provincial sales tax and has the lowest gasoline taxes in the country.
- A two-income family of four earning $75,000 pays about $1,400 less in total provincial taxes, including health care premiums, sales and other excise taxes, in Alberta than in Ontario and almost $1,800 less than in British Columbia.
- Alberta’s minimum wage is $8.80 per hour as of June 2010.
The major, traditional industries in Alberta are
- oil and gas / oilsands
- petrochemicals
- agricultural services
- food and beverage processing
- tourism
- industrial machinery and equipment.
Another significant industry is forestry, and two major forestry companies are located within the Alberta Energy Corridor: Millar Western Forest Products Ltd. and Alberta-Pacific Forest Industries Inc. (Al-Pac). Shipments of Alberta forest products reached $3.4 billion in 2009, and exports were $1.8 billion; these shipments included both the lumber produced by Millar Western and the pulp produced by Al-Pac. Alberta covers more than 66 million hectares of land, 58 per cent of which – 38 million hectares – is forested.
The emerging industries within Alberta are
- nanotechnology
- biotechnology and pharmaceuticals
- software development
- electronics and microelectronics.
Provincial Corporate Income Tax Rates (%)
| Province | General | Manufacturing and Processing | Small |
|---|---|---|---|
| Newfoundland | 14 | 5 | 5 |
| Prince Edward Island | 16 | 16 | 2.1 |
| Nova Scotia | 16 | 16 | 5 |
| New Brunswick | 12 | 12 | 5 |
| Quebec | 11.9 | 11.9 | 8 |
| Ontario | 14 | 12 | 5.5 |
| Manitoba | 12 | 12 | 1 |
| Saskatchewan | 12 | 10-12 | 4.5 |
| Alberta | 10 | 10 | 3 |
| British Columbia | 11 | 11 | 2.5 |
| Federal | 19 | 19 | 11 |
Comparison of Corporate Income Tax Rates (%)
| Federal | Provincial / State | Total | |
|---|---|---|---|
| Alberta January 2009 | 19 | 10 | 29 |
| United States January 2009 | 32.6 | 6.5 | 39.1 |
Alberta has one of the most competitive tax environments in North America. In 2009, combined federal and provincial corporate income tax was 29 per cent for general business and 14 per cent for small businesses. Municipalities in the Alberta Energy Corridor do not pay business taxes.
Alberta has no provincial capital taxes, and no sales tax, a refundable research and development tax credit and has a publicly funded health care insurance system – making Alberta’s tax environment very competitive.
Despite a global economic slowdown in 2008, Alberta’s economy remained strong and vibrant. In fact, Alberta’s economy grew by an estimated 1.5 per cent in 2008. Over the last two decades, Alberta had the highest gross domestic product (GDP) growth rate in Canada, at 3.5 per cent per year. Alberta’s exports of goods increased by one-third between 2007 and 2008 to an estimated $109 billion. While the demand for many of province’s natural resources weakened during the global downturn, Alberta’s ability to withstand economic declines is due to a low unemployment rate, a well trained workforce and an increasingly diversified economy.
