Businesses in Alberta are getting a boost for their hiring intentions, helping to offset some of the jobs lost from economic challenges.
The provincial government has introduced a new incentive for businesses by cutting the corporate tax rate from 11% to 10% as part of its ongoing Job Creation Tax Cut.
“It will take time to reverse the damage done to Alberta’s economy, but we are seeing positive signs that the Job Creation Tax Cut is working. We expect more good news of increased investment as the rate continues to decrease and businesses make new plans. We will continue to work to attract investment to Alberta.”
With the lowest general corporate income tax rate in Canada, Alberta is hoping to see improved competitiveness and attract new investment, especially as the combined federal-provincial corporate tax rate falls to 8.8% at the start of 2022. At that point, it will be lower than 44 of the US states.
Housing market improving
Along with a rise in non-residential investment in the province, Alberta’s housing market has seen some positives in the past year.
Investment in residential construction improved by more than 21% in 2019 from the multi-year lows seen in late 2018 and in October, home sales rebounded by more than 11% since they reached an eight-year low in February. Compared to the same month of 2018, home sales were up by 8.8%.
Building permits were up 3.8% year-over-year in October.
However, there was a deceleration in commercial real estate investment in the province.
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