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

Port Hardy’s RCMP Staff Sgt. Wes Olsen: ‘It’s business as usual’ after cannabis legalization

Local RCMP will still be on the lookout for impaired driving despite cannabis legalization.

Jay Dixon finishes top three for School and District Leadership award

“I believe it’s all of our responsibility for our schools to provide quality education,” said Dixon.

7 Mile Landfill operations tender closes October

Taxes covering the landfill have not increased over the past 15 years and are not expected to soon.

VIDEO: This is what buying legal pot in B.C. looks like

Take a look inside B.C.’s first and only legal pot shop located in Kamloops

10 things still illegal in the new age of recreational cannabis

Pot is legal – but there are still a lot of rules, and breaking some could leave you in jail

B.C. NDP retreats again on empty-home tax for urban areas

Rate reduced for all Canadians, dissident mayors to get annual meeting

Port Hardy municipal candidate Rick Marcotte’s profile

“I feel that we have had a wonderful council that can discuss issues of importance,” said Marcotte.

Earthquake early-warning sensors installed off coast of B.C.

The first-of-its kind warning sensors are developed by Ocean Networks Canada

Port Hardy municipal election candidate Leightan Wishart’s profile

Wishart speaks on his experience: “I’ve was elected to the School Board in 2002.”

Port Alice municipal election candidate Doug Worthington’s profile

“We must take advantage of provincial and federal grants whenever possible,” Worthington said.

Port McNeill municipal election candidate Falyn Lynch’s profile

“It’s time for progress, fresh ideas, renewed energy,” Lynch said.

Port Alice municipal election candidate Kevin Cameron’s profile

Cameron achievements include lobbying governments to create a community forest.

B.C. woman looks to reduce stigma surrounding weed-smoking moms

Shannon Chiarenza, a Vancouver mom of two, started weedmama.ca to act as a guide for newcomers to legal cannabis, specifically mothers

B.C. teen gives away tickets to Ellen Degeneres show, plans O Canada welcome

The Grade 9 student wanted to give away tickets in the spirit of inclusivity

Most Read