The Canadian government has announced plans to support new jobs in the country’s emerging LNG industry.
The government intends to establish a capital cost allowance rate of 30% for equipment used in natural gas liquefaction and 10% for buildings at a facility that liquefies natural gas. This tax relief will be available for capital assets acquired after 19 February 2015, and before 2025.
This measure will allow companies investing in new facilities that liquefy natural gas to create jobs and economic growth, while recovering their investment more quickly. It will also encourage investment in facilities that liquefy natural gas to supply emerging international and domestic markets.
Canada’s Prime Minister, Stephen Harper, said: “Our government is committed to providing the right conditions so that industries and businesses can succeed and compete in the global economy, by lowering taxes, cutting red tape and encouraging entrepreneurship. Today’s announcement builds on our low tax plan for jobs and growth, strengthening the already strong case for business investment in Canada.
“Through our ambitious trade agenda, we are opening new markets for Canadian businesses and developing the infrastructure to transport Canadian products to new markets, which is essential for Canada’s future prosperity and security.”
Adapted from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/liquefaction/20022015/canada-announces-plans-to-support-lng-industry-284/