The government of British Columbia introduced legislation to enable investment in the liquefied natural gas (LNG) industry of the Canadian province.
The legislation brings together the final fiscal elements of the policy framework for natural gas development set out by Premier John Horgan a year ago, a government statement reads.
British Columbia government has already provided a PST performance payment agreement and provided industrial electricity rates on par with other industrial users in B.C.
Once passed it will amend the income tax act to implement a natural gas tax credit for LNG development in British Columbia, repeal the LNG income tax act that created barriers for investment in B.C.’s natural gas sector and repeal the LNG project agreements act that left British Columbians vulnerable to footing the bill for special industry tax and regulatory protections, the statement reads.
Once complete, these steps will deliver the fiscal setting needed for LNG Canada’s proposed $40-billion project in northern British Columbia — the largest private-sector investment in B.C.’s history.
The completed fiscal framework comes after months of discussion between government, communities, Indigenous peoples and the LNG industry to make sure the LNG Canada project meets government’s environmental goals and commitments to economic partnerships with First Nations.
Effective January 1, 2020, the new natural gas tax credit will be available to qualifying corporations and is currently calculated at 3 percent of the cost of natural gas. The tax credit can be used to reduce B.C.’s corporate income tax rate from 12 percent to 9 percent.