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34 ROCKY MOUNTAIN OUTLOOK 2018.12.1334 ROCKY MOUNTAIN OUTLOOK 2018.12.13

ARYN TOOMBS

CANMORE –  Taking word of Bow Valley high-tech and tourism developments back to cabinet while selling local business leaders on the usefulness of government initiated tax credits is a high priority for Deron Bilous, Minister of Economic Development and Trade.

Bilous was impressed upon by tourism, business and municipal leaders last Thursday (Dec. 6) that eco-nomic diversification must continue in the Bow Valley.

“It’s everyone at the table saying ‘we recognize investments in this area’ – rising tides raises all boats,” he said.

Bilous said he will convene with his cabinet col-leagues from tourism, environment and parks, and transportation among others to ensure that the con-cerns of Bow Valley businesses are heard.

The minister singled out non-profit Innovate Canmore as one of the standout organizations for eco-nomic development in the Bow Valley, specifically for the expertise within the group in the area of artificial intelligence (AI).

Alberta has emerged as a world leader in the field of AI, with the University of Alberta being ranked third in the world for its development of machine learning and use of applied machine intelligence.

Bilous said he would be facilitating a conversation between Innovate Canmore and Alberta Innovate, an arm’s length agency within the Ministry of Economic Development and Trade that directs technology fund-ing and partnerships within the high-tech industry.

Finding commercial applications for AI research is one of the ways the government has identified to support all industries.

“I was very happy to learn that this area has a level of expertise when it comes to artificial intelligence and this is one of the priority areas or focuses of the region,” said Bilous.

“It’s not me coming here and saying ‘you guys should really get into artificial intelligence.’ That’s already happening. It’s happening organically. Now it’s a matter of can we put in some systematic supports to help grow it much faster?”

Also on the agenda for his return to Edmonton is ensuring that Bow Valley businesses have continued access to three different tax credits offered through the Growth and Diversification Act, also known as Bill 2, that passed in the legislature this year.

The Interactive Digital Media tax credit was intro-duced this year by the government, offering a 25 per cent tax credit for the salaries and wages incurred by companies engaged in creating digital games and game-like media.

The other two tax credits that were discussed were originally introduced in 2016’s Investing in a Diversified Alberta Economy Act:  the Capital Investment Tax Credit (CITC) and the Alberta Investor Tax Credit (AITC).

The CITC is of particular interest to the tourism industry in the Bow Valley, as it offers up to $5 million for a business related to its capital expenditures.

The government also sees the CITC as a way to reduce barriers-to-entry for small and medium-sized businesses in the province.

“Under our government, we recognize that it has helped to support diversifying the Alberta economy,” said Bilous.

“It gets them to scale faster plus it also provides an opportunity for Albertans to invest in companies in their own backyard.”

The Alberta Investor Tax Credit provides a 30 per cent tax credit for Alberta-based investment into small and medium-sized Alberta businesses engaged in new media, research or commercialization of technology.

“You think about a person who has maybe $5,000 or $10,000 in their RRSP or tax-free savings account – traditionally people will look to the Toronto Stock Exchange and so they are investing in companies there … the investor tax credit allows for Albertans to invest in those smaller Alberta companies, de-risking it by offering that 30 per cent tax credit,” said Bilous.

Thus far the government has said that the economic benefits of the AITC is approximately $100 million in investment in the province per year, while the CITC has leveraged over $2 billion in capital investment.

Bilous had some strong words for the opposition parties regarding the three tax credit programs leading into the spring 2019 election.

“Our government is committed to doing this but Albertans need to know this is not a priority of the opposition, and should they form government, I’d be very concerned that these programs will disappear.”

UCP MLA Richard Gotfried called the tax credits “Band-Aid, candy-like programs,” during a heated debate over Bill 2 – the bill containing the continua-tion of the CITC and AITC programs along with the new digital media tax credit – in the legislature on March 21. The UCP has characterized the tax credits as being corporate welfare that picks winners and losers among industry.

Bill 2 passed the legislature on June 5, with 33 members of the NDP for and seven members of the UCP and one member of the Alberta Party against.

NDP government focused on high-tech investment