Close X
Wednesday, November 13, 2024
ADVT 
National

B.C. Brings In Tax Credit To Help Spur Liquefied Natural Gas Investment

Darpan News Desk The Canadian Press, 26 Mar, 2019 09:24 PM

    VICTORIA — British Columbia is changing the province's tax structure for liquefied natural gas projects with Finance Minister Carole James saying the government is aiming to encourage more development through a natural gas tax credit.


    James introduced legislation Monday that she said meets the objectives set out a year ago by Premier John Horgan in a policy framework.


    "British Columbians are counting on us to attract LNG investment that meets strict conditions: delivering jobs and financial benefits to B.C., creating economic partnerships with Indigenous peoples, and protecting our clean air, land and water," she said in a statement. "This legislation completes the process of creating a fiscal framework that invites investment while supporting those conditions."


    Under the changes, the government would amend the Income Tax Act to implement the tax credit for LNG development. It would also repeal the Liquefied Natural Gas Income Tax Act, which it says created barriers for investment and left the province open to footing the bill for special industry tax and regulatory protections.


    However, the Green party said the government's actions are hypocritical because they stray from its CleanBC plan to reduce carbon pollution.


    In October, LNG Canada announced plans for a $40-billion project in Kitimat.


    The government said the tax changes it is making will provide the fiscal framework needed for the project, which is expected to create 10,000 construction jobs and up to 950 permanent jobs in the processing terminal.


    The new tax credit would go in effect on Jan. 1, 2020, to companies that qualify for it. It would be calculated at three per cent of the cost of natural gas and could be used to reduce B.C.'s corporate income tax rate from 12 to nine per cent.


    The Finance Ministry said the previous LNG income tax was removed because it created uncertainty and risk to investors but the natural gas tax credit has been retained to encourage companies to pay provincial corporate income taxes. It said qualifying corporations would be those with a principal business involving oil and gas exploration, development, refining marketing or liquefaction of natural gas.


    Green party Leader Andrew Weaver said in a statement the government's actions are pulling the province in two different directions.


    "Continuing to push for LNG development is short sighted and works directly against CleanBC objectives," he said.


    "After years of criticizing the B.C. Liberals for their generous giveaway of our natural gas resources, the B.C. NDP have taken the giveaway to a whole new level. The legislation brought forward by this province is a generational sellout."


    Weaver, who is the lead author of four United Nations intergovernmental climate change reports, said investments in renewable energy infrastructure would invite innovative industries to the province.


    Peter McCartney of the Wilderness Committee also criticized the legislation for not aligning with the CleanBC plan.


    "Premier Horgan is talking out of both sides of his mouth on climate change," McCartney said.


    "British Columbians are all doing their part to cut carbon pollution while at the same time he's giving $6 billion in tax breaks and subsidies to construct the most polluting project in the province."


    The Business Council of British Columbia, meanwhile, backed the government's approach, saying the changes will allow the province to compete in LNG markets around the world.


    "If we as a province are purposeful and apply this same competitive lens to all our natural resource, technology and energy export sectors we can become the low carbon supplier of choice globally," Greg D'Avignon, the council's president and CEO, said in a news release.


    "The resulting economic growth will create higher wage jobs, stronger communities and more government revenues to support the quality of life and services British Columbians expect."

    MORE National ARTICLES

    Vancouver Police Look For Additional Victims After Making Arrest For Assault Involving Spitting

    Vancouver Police Look For Additional Victims After Making Arrest For Assault Involving Spitting
    Vancouver Police have made an arrest in a random, unprovoked assault in downtown Vancouver over the weekend and are asking additional victims to come forward.

    Vancouver Police Look For Additional Victims After Making Arrest For Assault Involving Spitting

    MAP OF EXTREMISM: Anti-Discrimination Organization Wants To Map Offenders With Hate Atlas

    VANCOUVER — An advocacy organization says it wants to map hatred and discrimination across Canada in a move that is prompting warnings of caution from one civil liberties group.

    MAP OF EXTREMISM: Anti-Discrimination Organization Wants To Map Offenders With Hate Atlas

    'I'm A Little Numb:' Killer Of B.C. Gas Station Attendant Grant De Patie Dies

    BLIND BAY, B.C. — The mother of a British Columbia gas station attendant dragged to death under a vehicle more than a decade ago, says she is "numb" to learn her son's killer has died.

    'I'm A Little Numb:' Killer Of B.C. Gas Station Attendant Grant De Patie Dies

    Cheetahs Will Not Prosper In B.C.: Panel Rejects Permit Request For Two Big Cats

    The owners of two cheetahs will not be allowed to return the large, African cats to southeastern British Columbia to use them as ambassador animals promoting conservation of the endangered species.

    Cheetahs Will Not Prosper In B.C.: Panel Rejects Permit Request For Two Big Cats

    B.C. Judge Orders RCMP To Give Meng Data On Devices Seized During Arrest

    Justice Heather Holmes of the British Columbia Supreme Court says the RCMP must make copies for Meng Wanzhou of data on an iPhone, an iPad, a Macbook Air, a Huawei phone, two SIM cards and a flash drive.

    B.C. Judge Orders RCMP To Give Meng Data On Devices Seized During Arrest

    Trans Woman Hopes Funding Cut Will Send Message To Vancouver Rape Crisis Group

    "The organization is not bad," said Nixon. "It just means that attitudes have to change."    

    Trans Woman Hopes Funding Cut Will Send Message To Vancouver Rape Crisis Group