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

Police name second suspect, lay kidnapping and attempted murder charges in connection with Rudy Johnson Bridge incidents

Drynock is considered dangerous, do not approach him and call the local RCMP detachment immediately

Skeena-Bulkley Valley candidates react to finding Trudeau broke ethics law

The election campaign is heating up before the writ has even dropped

Links probable between homicide, missing persons investigation in Williams Lake

Rich ‘Savage’ Duncan the victim of Aug. 6 homicide

Heiltsuk challenges feds decision to award $67M contract to east coast towing company

Heiltsuk Horizon challenges decision to award emergency ship towing contract to Irving company

Jim Pattison takeover offer ‘non-binding,’ Canfor cautions investors

B.C. billionaire already big shareholder in forest industry

B.C. cricket players get interrupted by racist remark

Community has had protocols in place for years to respond to prejudice

Groovy B.C. wedding a throwback to Woodstock ‘69

Couple hosts themed wedding 50 years after legendary festival

Nearly 50% of Canadians experience the ‘post-vacation blues’: poll

48 per cent of travellers are already stressed about ‘normal life’ while still on their trip

More women may need breast cancer gene test, U.S. guidelines say

Recommendations aimed at women who’ve been treated for BRCA-related cancers and are now cancer-free

Couple could go to jail for taking 88 lbs. of Italian sand

Pair said they didn’t know it was illegal to take the sand, which is protected as a public good

Bodies of two missing Surrey men found near Ashcroft: RCMP

Ryan Provencher and Richard Scurr have been missing since July 17

B.C. manhunt suspects left cellphone video before they died: family

Family member says Kam McLeod, Bryer Schmegelsky recorded final wishes

Most Read