EDMONTON -- The Alberta government wants municipalities to have the power to offer businesses tax breaks not just on properties, but machinery and equipment as well.

Bill 7, introduced by the UCP government in June, allows cities to give tax incentives to non-residential properties for up to 15 years.

If passed, the amended act would give cities the option of providing businesses with the same multi-year tax incentives on machinery and equipment, Municipal Affairs Minister Kaycee Madu said Wednesday.

It came about after business and industry stakeholders told the government such incentives would spur further investment in communities.

"Flexibility to offer machinery and equipment tax incentives will help communities attract investment and support local job creation," said Ken Kobly, president and CEO of the Alberta Chambers of Commerce.

"Municipalities are key provincial partners in fostering a competitive business environment. This amendment to the MGA combined with Bill 7 sends a strong signal Alberta is open for business.”

According to the amendment, city councils could provide a "full or partial exemptions from taxation under this Division for property in one or both of those assessment classes," or "deferrals of the collection of tax under this Division on property referred to in clause (a)."

The bill passed first reading Wednesday and will go to a second reading, Committee of the Whole, and third reading before a final vote is held.

Municipalities currently must choose whether to tax machinery and equipment through either a business tax or municipal property tax.