SURREY – Prime Minister Stephen Harper took over part of Kwantlen Polytechnic University’s Cloverdale campus Thursday to announce new tax reliefs meant to foster the country’s liquefied natural gas sector.
Standing in a room of reporters and supporters at the trades-focused campus, Harper was accompanied by Minister of Industry James Moore and other party members. He announced the federal government intends to institute a capital cost allowance rate of 30 per cent for equipment used specifically in natural gas liquefaction, and 10 per cent for infrastructure at facilities that liquefy natural gas. The reliefs will be available for just under a decade, starting now until before 2025.
"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," said Harper. "Today’s announcement builds on our low tax plan for jobs and growth, strengthening the already strong case for business investment in Canada."
Harper’s announcement was met with enthusiasm by B.C. Premier Christy Clark, who’s long touted LNG as a future-moneymaker for the province.
"This is great news for the creation of LNG jobs in British Columbia, and great news for Canada," said Clark in a release. "We have been working with the federal government and industry for some time to achieve this outcome, and I am pleased they have delivered today."
According to numbers provided by the provincial government, B.C. has an estimated 2,933 trillion cubic feet of natural gas.