LNG tax relief welcomed by government and industry alike

first_imgPremier Clark says “independent research” shows the potential of a total industry investment of $175 billion and up to 100,000 new jobs if five LNG plants are built.“This measure will allow companies investing in new facilities that liquefy natural gas to create jobs and economic growth, while recovering their investment more quickly,” MP Zimmer writes. “It will also encourage investment in facilities that liquefy natural gas to supply emerging international and domestic markets.”There are currently 19 LNG proposals in B.C. – 10 of which have received export approval by Canada’s National Energy Board.There has yet to be a singe LNG proponent to come forward with a final investment decision.Advertisement “This is great news for the creation of LNG jobs in British Columbia, and great news for Canada,” writes Premier Christy Clark. “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.”The new tax relief is a capital cost allowance rate of 30 per cent for equipment used to liquefy natural gas and 10 per cent for infrastructure at the export facility.Prince George-Peace River MP Bob Zimmer says he’s been an advocate of an LNG tax relief for some time now.- Advertisement -“This is personally something that I have been working hard on and to see it come to fruition is extremely rewarding,” MP Zimmer writes. “I would like to thank the Prime Minister for his commitment to the LNG industry and to the people of British Columbia.”This tax relief will be available for capital assets acquired after February 19, 2015 and before 2025.“[This] announcement by the federal government encourages the development of a robust LNG industry in British Columbia,” President of the BC LNG Alliance David Keane writes. “…The B.C. LNG Alliance and its members will continue to work with First Nations and stakeholders to ensure there are policies and programs in place that enable our industry to reach its full potential.”Advertisementlast_img

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