The economy of oil-rich Alberta could experience economic growth once the impacts of a capital investment tax credit take hold, the provincial leader said.
"Alberta business leaders told us this tax credit would be an important way to help local companies grow and create good jobs," Alberta Premier Rachel Notley said in a statement. "Their investments, along with our historic infrastructure build, will put Albertans back to work and help diversify our economy, making life better for Alberta families."
Alberta is searching for ways to diversify an economy that depends heavily on oil and natural gas for revenue. At one point last year, the oil-rich province was anticipating an $8 billion deficit and lingering recession because of the downturn in crude oil prices and May wildfires in the Fort McMurray area that idled about 1 million barrels per day worth of regional oil production.
In April, the provincial government unveiled a $3.7 million support program to provide rebates to municipalities that install solar panels on their offices and community centers.
The provincial government said it was investing about $21 million worth of tax credits for the first round. Over the course of the program, the government estimates the program will support the development of 4,600 jobs and leverage about $540 million in new capital investment.
"The capital investment tax credit presents a unique opportunity to encourage the kind of investment our economy needs to grow and diversify," Adam Legge, the president and CEO of the Calgary Chamber of Commerce, said.
A June survey from the Central Bank of Canada found most firms were optimistic about economic momentum given the increased demand from the exploration and production side of the energy sector, increased demand for Canadian goods from Asia and Europe, and the potential kickbacks from U.S. President Donald Trump's support for oil and natural gas.
However, uncertainty about U.S. trade policies and protectionist measures from the same administration meant most firms were taking a wait-and-see approach or delaying some programs altogether.
Electric car boom won't spell 'end of oil': IEA chief
The use of electric cars is set to grow in the coming years, but this will not spell the end of demand for oil, the head of the International Energy Agency (IEA) said on Tuesday.
IEA executive director Fatih Birol told Agence France-Presse in an interview that the growth of electric cars was starting from a very small base and oil would still be needed for ships, planes and trucks.
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