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

Slocan Valley to be ‘lit up’ with high-speed internet in 12 months

125 kilometres of fibre-optic cable to be laid from Nakusp to Playmore Junction

Vigil re-affirms belief in peace, acceptance in wake of New Zealand massacre

Nearly 100 show up for solemn event at Mir Centre for Peace

Police bust drug operation in Castlegar

Man charged, will go to court in August

Zoning mix-up nixes Shoreacres property sale

Man says the RDCK’s listings online don’t match his property’s official zoning

Castlegar coach receives Basketball BC honour

Cheryl Closkey recognized for 50 years of volunteering

Protective human chain forms around Victoria mosque for Friday prayer

Islanders stand arm-in-arm to show support in aftermath of New Zealand shootings

Boy who went missing from park remains largest probe in Victoria police history

The four-year old Victoria boy went missing without a trace on March 24, 1991

WestJet sticking with Boeing 737 Max once planes certified to fly

WestJet had expected to add two more of the planes this year to increase its fleet to 13

B.C. driver caught going 207 km/h on motorcycle along Okanagan Highway

A motorcyclist was caught by Kelowna RCMP going 207 km/h on Highway 97C

Protective human chain forms around B.C. mosque for Friday prayer

Vancouver Islanders stand arm-in-arm to show support in aftermath of New Zealand shootings

B.C. fire department offers tips to keep your home safe during wildfire season

With wildfire season getting closer, the Penticton Fire Dept. offer tips to keep your home safe

Rural Kootenay communities to receive high-speed internet upgrade

The provincial government is increasing internet connectivity to rural British Columbia

Fierce house cat spotted as ‘aggressor’ in face off with coyote in B.C. backyard

North Vancouver resident Norm Lee captures orange cat versus coyote in backyard showdown

Wilson-Raybould to reveal more details, documents on SNC-Lavalin affair

Former attorney general has written to the House of Commons justice committee

Most Read