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Many other jurisdictions, both in Canada and the U.S., offer tax credit programs to boost high-growth industries such as tech and the video game sector. Earlier this month, as reported by The Logic, Toronto-based technology firm Wattpad selected Halifax over Calgary to be its headquarters. In a letter to Calgary Economic Development explaining its decision, Wattpad cited Alberta’s elimination of the business tax credit programs as one factor.

Adam Legge, co-chair of the government’s working group and president of the Business Council of Alberta, acknowledged that every jurisdiction in North America is competing for capital to invest in their local tech sectors.

“These are beginning to be table stakes, these kinds of financial tools for jurisdictions to be able to compete,” Legge said.

However, Legge said he’s not convinced that Wattpad’s decision was largely the result of the elimination of the tax credits.

“There’s speculation it could be talent pipeline reasons, which is another reason we didn’t make the Amazon shortlist as well,” Legge said.

Legge, who had advocated for the creation of an Investor Tax Credit when he was president of the Calgary Chamber of Commerce, said the program as implemented by the NDP had many weaknesses — including being too bureaucratic.

“It was not perfect, and I think what they (the UCP) have done is pulled that back and put in place this working group to come up with solutions that could be more effective in the long term,” he said. “Alberta does need to have some kind of innovation tool in its tool box to attract capital and investment and companies to the province . . . We may not just recommend one thing, but perhaps a suite of options.”

The working group has a $50,000 budget and is expected to submit a final report to government by Feb. 28, 2020.

astephenson@postmedia.com

Twitter: @AmandaMsteph