- Federal Government to Consider LNG Tax Break in Budget
- March 18, 2015
- Law Firm: DLA Piper (Canada) LLP - Vancouver Office
- Reuters is reporting that Finance Minister Joe Oliver, in pre-budget consultations, is considering a proposal to provide a significant tax break to proposed LNG plants in British Columbia.
Under the current tax regime, LNG plants are entitled to claim depreciation at a rate of 8% per year. Under the proposal, which has been championed by the Canadian Association of Petroleum Producers, the plants would be classified as “manufacturing facilities” and would be entitled to claim depreciation at a rate of 30-50% per year.
The proposal has been under consideration for some time, and the Federal Government has rejected it in the last two budgets. The next federal budget is expected in April.