Incentives

Investment projects can be risky. Let us help. Fort Saskatchewan is committed to keeping a business-friendly setting by giving your company an edge. We have federal, provincial, and local incentives that can support you.

Major Incentive Bylaw

The City of Fort Saskatchewan has established an incentive program to encourage new investment and expansion in the Hydrogen, Value-Added Agriculture, Industrial Support, and Manufacturing sectors. These incentives were developed in response to the Industrial Competitiveness Strategy and Toolset – Implementation Plan report, which identified industrial development as a key priority to attract and encourage target sector businesses in Fort Saskatchewan, increase the non-residential tax base, and encourage long-term job growth.

Major Incentive Bylaw C10-24

Hydrogen Tax Incentive

Fort Saskatchewan's Hydrogen Tax Incentive is designed to foster the growth of a robust hydrogen energy industry by offering financial incentives for substantial capital investments. Supporting both large and small-scale projects, the City aims to establish itself as a key player in the global hydrogen market. This incentive capitalizes on Fort Saskatchewan’s competitive advantages, including a skilled workforce, ideal geological formations for carbon sequestration, and access to critical resources and infrastructure. The initiative aligns with broader sustainability goals, positioning the City at the forefront of the energy transition and contributing to a cleaner, more sustainable future.

Value-Added Agriculture Tax Incentive

Fort Saskatchewan's Value-Added Agriculture Tax Incentive is designed to stimulate the development and growth of the food processing and production sectors by offering financial incentives for significant capital investments. By prioritizing innovation, modernization, and efficient logistics, the City aims to enhance the competitiveness of this industry. The incentive leverages Fort Saskatchewan’s strengths, including a skilled workforce, access to raw materials, and robust transportation infrastructure. This initiative aligns with broader economic and sustainability goals, positioning the City as a leader in value-added agriculture and contributing to regional and national food security.

Hydrogen and Value-Added Agriculture Incentive Requirements:

  • Provides a 2.5% incentive on eligible capital costs for up to 10 years.
  • Requires a minimum capital investment of $10 million (CAD) in eligible capital costs.
  • The project must employ at least 50 personnel, including contract and subcontract labor, during the construction period or at least 15 permanent skilled workers during operations for the duration of the Tax Incentive Agreement.

Industrial Support and Manufacturing Tax Incentive

Fort Saskatchewan's Industrial Support and Manufacturing Tax Incentive is intended to strengthen the region's industrial base by providing financial support to small and medium-sized businesses. Focusing on logistics, specialized industrial services, and manufacturing, this incentive aims to improve the efficiency and competitiveness of local businesses, driving economic growth and sustainability.

Industrial Support and Manufacturing Incentive Requirements:

  • Provides a 5.0% tax incentive on eligible capital costs, to a maximum of $250,000 over 10 years.
  • Requires a minimum capital investment of $1 million (CAD) in eligible capital costs.
  • The project must employ at least 15 personnel, including contract and subcontract labor, during the construction period, or at least 5 permanent skilled workers during operations for the duration of the Tax Incentive Agreement.
  • Development permit applications for eligible projects must be submitted to the City no later than June 30, 2029.

If you have any questions, or believe you are eligible, please contact bchartrand@fortsask.ca.
 

Heartland Incentive Program

The City of Fort Saskatchewan is proud to be a founding member of Alberta’s Industrial Heartland Association (AIHA). Alberta’s Industrial Heartland is Canada’s largest hydrocarbon processing center. Our unique region offers world class facilities that can produce global scale quantities, and are responsible for 43% of our national basic chemical manufacturing industry. Alberta’s Industrial Heartland is ideally located in the province of Alberta, offering attractive and extensive opportunities in multiple sectors including energy and petrochemical value chains.

In October 2020, the provincial government officially launched the Alberta Petrochemical Incentive Program (APIP), a grant program intended to attract new or expanded petrochemical facilities.

In December 2020, the City of Fort Saskatchewan approved the Heartland Incentive Program, which is intended to help improve project economics and overall regional competitiveness, bringing investment and jobs to Fort Saskatchewan.

Heartland Incentive Program Guidelines

  • The Heartland Incentive Program provides an Incentive valued in total of 2.5 percent of Eligible Capital Costs, as outlined in the Heartland Incentive Bylaw C28-20.
  • To be eligible for an Incentive, the Project shall:
    • be physically located within the designated geographic area of the City;
    • be within the Energy Value Chain or Associated Infrastructure;
    • be a New Construction or Expansion Project;
    • deploy an Eligible Capital Cost of more than $50 million (Canadian dollars); and,
    • employ over 250 personnel during construction or employ more than 15 skilled permanent staff upon completion during operation.

To learn more about this program, please contact our Economic Development team.
 

Downtown Development Incentives

The City of Fort Saskatchewan has established two new incentives to encourage multi-unit and mixed-use residential development in the city’s downtown core; a Brownfield Tax Exemption and a Downtown Development Grant. These new incentives were created in response to the Downtown Action Plan, that identified residential development as a key priority to supporting businesses in the area, and included the creation of development incentives among its 23 recommendations.

Business Development Incentive Program

The City of Fort Saskatchewan Business Development Program offers five unique incentives that were developed, in partnership with local business, to help accelerate the growth and development of small businesses and assist commercial property owners improve their property. 

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