LNG processing and tanker loading facility proposed by consortium led by PETRONAS at Lelu Island

Federal tax credits target LNG investment (with VIDEO)

Prime Minister Stephen Harper sweetens the pot for LNG investors with investment credits similar to B.C. system

The federal government is offering tax breaks for equipment and buildings for liquefied natural gas production.

Prime Minister Stephen Harper announced the tax breaks in Surrey Thursday with Industry Minister James Moore and three B.C. MPs.

LNG producers will be granted capital cost allowances of 30 per cent on equipment and 10 per cent on buildings, which reduce their income tax to offset construction costs. The standard rate for capital cost allowance is eight per cent for equipment and six per cent for buildings.

B.C. took a similar approach with its LNG income tax, offering credits on corporate income tax until initial plant investments are paid off.

Premier Christy Clark welcomed the federal move, which she said B.C. has lobbied hard to get as international producers have delayed final investment decisions. She said the drop in oil prices has made the decision more difficult for big companies that get part of their revenue from oil, but B.C. is competitive on LNG.

“We’re already more competitive than Australia,” Clark said. “Our real main competition in the world is the U.S. and the west coast of North America.”

NDP natural gas critic Bruce Ralston said the front-end tax credits are the right approach to take, but the federal tax break doesn’t change the economic conditions for B.C. trying to enter a global energy market.

“Our objections are the same,” Ralston said. “If LNG proponents want, as one proponent did, 70 per cent temporary foreign workers, and 70 per cent of the [greenhouse gas] emissions are not being counted, then we don’t support the plan.”

David Keane, president of the BC LNG Alliance, said the federal decision is encouraging and the industry continues to work with First Nations and other local governments to develop.

Just Posted

Softwood lumber duties decrease after final determination

High lumber prices mitigating impact on local mills

Medals brought home from Taekwondo Westerns

Fort team travelled to Grand Prairie for Western Canadian Championships

Fort hockey girls help bring home division silver

Combined PeeWee/Bantam team compete at Women’s Hockey Wickfest, Calgary

VIDEO: Government approves funding of $750,000 drug for B.C. woman

Approval comes one day after province announces funding for Soliris on a case-by-case basis

Surrey union decries ‘epidemic’ level shortage of education assistants in B.C.

Children sit with tablets for hours when EAs aren’t available, CUPE says

VIDEO: Rare comic showing Superman’s 1st appearance to be auctioned

The 1938 comic features Superman hoisting a car over his head

An adopted cat is the best 10 pounds you’ll gain this season

BC SPCA encouraging families to add a forever feline friend during adoption event Nov. 24 to Dec. 3

Uber official says public needs to push for ridesharing in B.C.

Mike van Hemmen tells Kelowna Chamber of commerce ridesharing would be ‘win-win-win’

B.C. co-ops relieved with Ottawa’s housing strategy

Federal government to have a new co-operative housing funding model in place by 2020

B.C. NDP referendum plan sparks legislature battle

David Eby says public will decide on proportional referendum

Hammy has been freed of his threads, a purple antler remains

The iconic Prince Rupert buck with a piece of hammock attached to his antlers was caught by COs

Court adjourned again for man linked to Shuswap farm where human remains found

Curtis Sagmoen will appear back in court on Dec. 14

B.C. family advocating for drug decriminalization following death of son

Federal NDP leader Jagmeet Singh has noted the New Democrats would decriminalize personal possession of all drugs

Winning Lotto 6/49 purchased in Kelowna

Some lucky man or woman purchased a winning 6/49 ticket in Kelowna.

Most Read