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Bylaw 62-2020
Page 1
BYLAW 62-2020
INDUSTRIAL HEARTLAND INCENTIVE TAX EXEMPTION BYLAW
(CONSOLIDATED March 31, 2026)
AS the municipality considers it desirable to encourage the development or
revitalization of non-residential properties and machinery and equipment for the
general benefit of the municipality and promote investment in the Strathcona
County Industrial Heartland; and
Council wishes to pass a tax exemption bylaw to provide tax incentives for the
construction of large Energy Value Chain Projects and Associated Infrastructure in
the Strathcona County Industrial Heartland pursuant to section 364.2 of the
Municipal Government Act;
Council enacts:
PART I - PURPOSE, DEFINITIONS, AND INTERPRETATION
Purpose
1 The purpose of this bylaw is to:
(a) Encourage the development or revitalization of non-
residential properties and machinery and equipment
in the Strathcona County Industrial Heartland for the
general benefit of the municipality;
(b) establish tax exemptions in accordance with section
364.2 of the Municipal Government Act for Assessed
Persons when there is a New Project or an
Expansion Project that meets the criteria and
requirements set out in this bylaw;
(c) provide a process for application for a tax exemption
under this bylaw; and
(d) provide a process for review by Council of the
refusal or cancellation of a tax exemption under this
bylaw.
Definitions
2 In this bylaw:
(a) "Applicant" means a person who applies for an
Exemption;
(b) "Application Fee" means the fee established by this
bylaw to be paid at the time an application is
submitted pursuant to this bylaw;
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(c) "Assessed Person" means an assessed person as
defined under section 284(1) of the Municipal
Government Act;
(d) "Associated Infrastructure" means the network of
facilities and infrastructure that support hydrocarbon
processing from the research and development of
new innovative technology, necessary construction
facilities, the development of the value-add product
itself, its storage, and eventual delivery to an end-
user (e.g. modular yards, air separation units, rail
transportation facilities; etc.);
(e) "Chief Administrative Officer" means the chief
administrative officer of the County, or delegate;
(f) "Commercial Operation Date" means the date from
which the machinery and equipment components of
the New Project or Expansion Project are operational
as determined in accordance with MRAT and the
Municipal Government Act, unless the New Project or
Expansion Project does not include machinery and
equipment, in which event "Commercial Operation
Date" means the date at which the New Project or
Expansion Project is complete as determined in
accordance with MRAT and the Municipal
Government Act;
(g) "Complete Application" means an application
submitted pursuant to this bylaw that includes the
Application Fee, the application form, any
information and documents set out on the
application form and any additional application
requirements for the tax incentives under this bylaw,
including any additional documentation requested by
the County to verify the accuracy of the information
provided;
(h) "County" means the municipal corporation of
Strathcona County, a specialized municipality
established under the authority of the Municipal
Government Act and Order in Council 761/95;
(i) "Council" means the Council of the County;
(j) "Decision" means the decision to grant an
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Exemption, to reject the Exemption application, or to
cancel an Exemption;
(k) "Eligible Capital Costs" means the lower of the actual
total capital costs incurred to construct the New
Project or Expansion Project, or the estimated cost
to the Assessed Person to construct the New Project
or Expansion Project at the time of Final Investment
Decision as outlined in the Complete Application, and
will include any new expenditures on labour,
engineering, materials or other costs associated with
the construction, but will not include the costs of any
improvements or machinery and equipment that
existed on the land before construction commenced
or the land itself, or other non-capital costs such as
legal/regulatory/permitting fees;
(l) "Energy Value Chain Project" means a project
associated with the processing or utilization of
hydrocarbons in such a way that produces higher-
value products relative to the feedstock and may
include, but is not limited to, projects that involve:
(i) manufacturing products;
(ii) researching and developing product lines and
new technology;
(iii) transporting and storage of products; and
(iv) services directly relating to manufacturing,
researching or transporting products; and
(v) Associated Infrastructure.
(m) "Exemption" means the portion of taxes on non-
residential property and machinery and equipment
that have been determined to be exempt in
accordance with this bylaw, and which are computed
separately under this bylaw for non-residential
property and for machinery and equipment;
(n) "Expansion Project" means an expansion of an
existing Energy Value Chain Project, but does not
include replacement and upgrading of the
components of an existing project;
(o) "Final Investment Decision" means the final approval
Bylaw 62-2020
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and sanction by the owners of a New Project or
Expansion Project;
(p) "Full Time Position" means the equivalent of a
person working a minimum of 34 hours per week
throughout a 52-week period;
(q) "machinery and equipment" means the type of
property falling within the assessment class specified
in section 297(1)(d) of the Municipal Government
Act;
(r) "Municipal Government Act" means the Municipal
Government Act, RSA 2000, c M-26;
(s) "MRAT" means the Matters Relating to Assessment
and Taxation Regulation, 2018, AR 203/2017;
(t) "New Project" means a new construction for an
Energy Value Chain Project on a Property;
(u) "non-residential" means the type of property falling
within the assessment class specified in section
297(1)(b) of the Municipal Government Act;
(v) "Property" means the property or properties on
which an Applicant is applying to qualify for an
Exemption;
(w) "Qualifying Property" means a Property which meets
the criteria under this bylaw for an Exemption;
(x) "Skilled Job" means a job that requires a university
degree, post-secondary diploma or certificate, or
some form of trade credential that is commonly
recognized, and the County at its sole discretion will
determine whether the job meets such
qualifications;
(y) "Strathcona County Industrial Heartland" means that
area of land in the north of Strathcona County found
within the boundaries outlined in Schedule A;
(z) "Supplementary Assessment" means a
supplementary assessment as set out in Part 9,
Division 4 of the Municipal Government Act;
(aa) "Tax Incentive Agreement" means a written
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agreement setting out the terms and conditions for
an Exemption for the Qualifying Property.
Interpretation
3 The following rules apply to interpretation of this bylaw:
(a) headings, titles, margin notes, and preambles in this
bylaw are for ease of reference only;
(b) gender-specific words, phrases, and references are
intended to be gender-neutral, and the singular
includes the plural as the context requires;
(c) every provision of this bylaw is independent of all
other provisions and if any provision of this bylaw is
declared invalid by a Court, all other provisions of
this bylaw remain valid and enforceable; and
(d) references to bylaws and enactments in this bylaw
include amendments and replacement bylaws and
enactments, and regulations and orders thereunder.
PART II - AUTHORITY AND CRITERIA FOR EXEMPTION
Authority to Grant
Exemption
4 The Chief Administrative Officer has the authority to
determine whether an Exemption will be granted in
accordance with the terms and conditions of this bylaw.
Criteria for
Exemption
5 (1) To be eligible for an Exemption, the following eligibility
criteria must be met:
(a) Requirements for a New Project or an Expansion
Project:
(i) be a New Project or an Expansion Project with
Eligible Capital Costs of more than $50 million
Canadian dollars;
(ii) be commenced subsequent to this bylaw coming
into force, unless an application for exemption for
the New Project or Expansion Project is received
by the County on or before April 1, 2021; and
(iii) employ over 250 personnel, including contract
and subcontract labour, over the course of the
construction period; or employ on the Property on
an ongoing basis after construction is complete,
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the equivalent of more than 15 Full Time Positions
that qualify as Skilled Jobs.
(S.3, Bylaw 29-2021, June 15, 2021)
(b) Requirements for Qualifying Property:
(i) be physically located within the designated
geographic area of the Strathcona County
Industrial Heartland;
(ii) obtain all necessary development approvals from
the County;
(iii) not be going through foreclosure; and
(iv) not have development compliance issues, be in
violation of a development agreement, or in
violation of the Safety Code Act at any time
during the taxation years for which the Exemption
applies.
(c) Requirements for Applicant:
(i) Applicant is the Assessed Person or authorized
agent for the Assessed Person;
(ii) Assessed Person must not be in arrears or have
amounts owing with regards to property tax,
utilities, or other fees owed to the County;
(iii) Assessed Person must not be in bankruptcy or
receivership;
(iv) Assessed Person must be in compliance with
terms and conditions of any grant or other
financial assistance received from the County,
irrespective of the New Project, the Expansion
Project, or the Qualifying Property;
(v) Assessed Person and their agent must not furnish
false information within an Application, or furnish
false information or misrepresent any fact or
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Ineligible Projects
Period of Effect of
Exemption
circumstance to the County whether as part of the
application process or during the term of the Tax
Incentive Agreement; and
(vi) Assessed Person and their agent must meet all
requirements under this bylaw and the Municipal
Government Act.
(2) New Projects or Expansion Projects that transition
operations or relocate development from one
municipality within the boundaries of the Alberta
Industrial Heartland as outlined in Schedule A to
another municipality within the boundaries of the
Alberta Industrial Heartland will not be eligible for an
Exemption.
(3) The Chief Administrative Officer may exercise
discretion to refuse to have the County grant an
Exemption when:
(a) an entity related to the Assessed Person is in
bankruptcy, or receivership;
(b) the Assessed Person owns any interest in another
property that is going through foreclosure;
(c) an entity related to the Assessed Person owns any
interest in another property going through
foreclosure;
(d) the Property is the subject of some form of
litigation;
(e) the Assessed Person is involved in litigation with the
County; or
(f) in the sole discretion of the Chief Administrative
Officer, there is any other reason to believe that the
Exemption is not in the public interest.
6 (1) An Exemption may have effect for up to:
(a) 11 consecutive taxation years if a Supplementary
Assessment is prepared for the Property in the same
taxation year as the Commercial Operation Date, but
in no case will the Exemption have effect for more
than 11 consecutive taxation years; and
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Page 8
(b) 10 consecutive taxation years if no Supplementary
Assessment is prepared for the Property in the same
taxation year as the Commercial Operation Date, but
in no case will the Exemption have effect for more
than 10 consecutive taxation years,
and no subsequent application for exemption or deferral of
taxes will be accepted for the New Project or Expansion
Project.
(2) Notwithstanding anything in this bylaw, no exemption
will be permitted to apply in a taxation year that is more
than 15 years after an exemption is approved in
accordance with this bylaw.
Change of
Ownership
7 (1) A change in ownership of the Property will not affect
the Exemption unless the new owner falls within one or
more of the terms for disqualification under section 5 of
this bylaw.
(2) To maintain eligibility for the Exemption, the new owner
must assume the obligations that arise under the Tax
Incentive Agreement.
PART III - APPLICATION AND DECISION PROCESS
Application for
Exemption
8 (1) The application process for an Exemption is as follows:
(i) Applicants must submit a Complete Application to
the County, and the County has the discretion to
reject applications that are incomplete, ineligible, or
provided after the deadline provided in this bylaw;
(ii) Applicants must submit a non-refundable application
fee of $5,000.00 (Canadian dollars);
(iii) a Complete Application must be received before
construction of the New Project or Expansion Project
has commenced, unless the Complete Application is
received prior to April 1, 2021;
(iv) Applicants whose applications are returned as
incomplete or ineligible may resubmit an application
without payment of a further application fee;
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Decision on
Exemption
(v) notwithstanding the Complete Application
requirements, the County may require any
additional information that, in the discretion of the
County, is necessary to complete the application and
may require the Applicant's consent to be given for
the County to obtain such additional information;
(vi) Complete Applications may be considered and
approved in accordance with this bylaw before
construction on the qualifying property is complete;
however, the Exemption will not apply until all
construction on the Qualifying Property is complete,
the development is inspected and approved, and the
Commercial Operation Date takes place; and
(vii) the County will advise Applicants in writing if their
application is accepted for consideration.
Applications accepted for consideration will become
the property of the County and may not be
returned.
9 (1) The Chief Administrative Officer will receive and
consider Complete Applications within the provisions of this
bylaw and may consult with, obtain information from, and
verify information with other employees or agents of the
County, other governments, government agencies, or
persons.
10 The Chief Administrative Officer will consider each
application and:
(a) grant the Exemption and enter into a Tax Incentive
Agreement with the Applicant; or
(b) reject the application and advise the Applicant with
written reasons as to why.
11 The Chief Administrative Officer is authorized to enter into
a Tax Incentive Agreement with the Applicant if an
Exemption is granted.
12 (1) The Chief Administrative Officer will issue a written
Decision to the Applicant outlining the following
information:
(a) whether a Property qualifies for the Exemption, and
Bylaw 62-2020
Page 10
the years to which the Exemption applies, which
must not include any taxation year earlier than the
taxation year in which the Exemption is granted, if
applicable;
(b) any reason why the Property fails to qualify for the
Exemption and provide the date by which an
application for an appeal to Council must be made;
(c) the extent of any exemptions granted on the
Property pursuant to the terms of this bylaw; and
(d) any conditions, the breach of which will result in the
loss of the Exemption and the taxation year or years
in which the conditions apply.
(2) In issuing a Decision under subsection (1), and in the
Tax Incentive Agreement, the Chief Administrative Officer
may set conditions requiring the Applicant to provide
information requested by the County to enable the County
to monitor whether the Property continues to meet the
terms of this bylaw throughout the period for which the
Exemption is granted, or to ensure that the calculation of
the Exemption is accurate, including the provision by the
Applicant of consent for the disclosure of such information
to the Chief Administrative Officer by employees or agents
of the County, other governments, government agencies,
or other persons.
(3) It will be a deemed condition of all Decisions that
section 5 of this bylaw be complied with on an ongoing
basis.
(4) At any time, the Chief Administrative Officer may
require the Applicant to provide any documents as the
Chief Administrative Officer may deem necessary to verify
any information contained in the application or to confirm
ongoing compliance with the eligibility criteria of the
Exemption.
(5) When a condition of the Decision is breached, a
Property no longer qualifies for an exemption under this
bylaw, or information becomes available that shows that
the Property should not qualify for an exemption under this
bylaw, the Chief Administrative Officer will issue a written
Decision cancelling the exemption, provide an explanation
why the exemption has been cancelled, and what criterion
or conditions must be met in order for the exemption to be
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Page 11
Calculation of the
Non-Residential
Exemption
Calculation of a
Machinery and
Equipment
Exemption
reinstated, if applicable. The written Decision will also
provide the date in which an appeal to Council must be
submitted.
PART III - CALCULATION AND APPLICATION OF THE
EXEMPTION
13 (1) An Exemption granted pursuant to this bylaw will be
calculated and applied in accordance with this section.
(2) The amount of exempt taxes that will form the
Exemption for the non-residential portion of the Property
will be based on the following formula:
2% of the non-residential Eligible Capital Costs.
(S.3, Bylaw 3-2022, January 18, 2022)
(3) The amount of exempt taxes that will form the
Exemption for the machinery and equipment portion of the
Property will be based on the following formula:
2% of the machinery and equipment Eligible Capital
Costs.
(S.3, Bylaw 3-2022, January 18, 2022)
(4) For greater clarity, where Eligible Capital Costs include
both expenditures on machinery and equipment and non-
residential property, the Eligible Capital Costs will be
allocated to each class of property for the purposes of
calculating the Exemption under this section.
(4) Despite subsection (1) and subsection (2), in no case
will the amount of the Exemption exceed the amount of
taxes that would have been imposed on the portion of a
Property that qualifies as an Expansion Project or the taxes
that would have been imposed on the New Project, for
non-residential property or machinery and equipment
respectively, if the Exemption had not been applied.
(5) No exemption will be granted to exempt any education
requisition, housing requisition or any other requisition
including a designated industrial property requisition.
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Maximum
Exemption
14 (1) Subject to section 16 of this bylaw, the Exemption will
be allocated as follows
(S.1(a), Bylaw 13-2026, March 31, 2026)
(a) for all eligible tax years identified in the Tax Incentive
Agreement, the Qualifying Property will receive a
maximum 80% exemption on the incremental
increase in the annual property taxes levied upon the
Qualifying Property based on the increase in the
assessed value of the Qualifying Property attributable
to the new construction relating to the New Project or
Expansion Project for which the tax incentive has been
granted in that taxation year;
(S.3, Bylaw 3-2022, January 18, 2022)
(b) notwithstanding anything in this bylaw, if the
remaining amount of the Exemption is less than 80%
of the incremental increase in the annual property
taxes levied upon the Qualifying Property in the
assessed value of the Qualifying Property attributable
to the new construction relating to the New Project or
Expansion Project for which the tax incentive has been
granted, the exemption for that taxation year will
equal the remaining amount of the Exemption;
(S.3, Bylaw 3-2022, January 18, 2022)
(c) notwithstanding anything in this bylaw, if in the final
year of the taxation years for which the Exemption
may be applied, the remaining amount of the
Exemption is more than 80% of the incremental
increase in the annual property taxes levied upon the
Qualifying Property in the assessed value of the
Qualifying Property attributable to the new
construction relating to the New Project or Expansion
Project for which the tax incentive has been granted,
the balance of the Exemption over the 80% will be
cancelled and the Applicant will have no further right
to Exemption.
(S.3, Bylaw 3-2022, January 18, 2022)
(3) For greater clarity, in no case will an exemption on
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Page 13
Commencement of
Exemption
Tax Incentive
Agreement
non-residential property be applied to taxes on machinery
and equipment and in no case will an exemption on
machinery and equipment be applied to taxes on non-
residential property.
15 Notwithstanding any other provision of this bylaw, the
Exemption shall not take effect and shall not be applied:
(a) at any time prior to the Commercial Operation Date; and
(b) until the Applicant has met all conditions of the Decision,
the Tax Incentive Agreement and requirements under
this bylaw.
(S.1(b), Bylaw 13-2026, March 31, 2026)
16 A Tax Incentive Agreement will be required for all granted
Exemptions. The Tax Incentive Agreement will include the
following:
(a) the taxation years to which the Exemption applies,
which must not include any taxation year earlier than
the taxation year in which the Exemption is granted;
(b) conditions the breach of which will result in cancellation
of the Tax Incentive Agreement and the Exemption,
and the taxation year or years to which the conditions
apply;
(c) the date which the Exemption will begin in effect;
(d) the amount of the Exemption, to be calculated and
allocated in accordance with section 13 and section 14
of this bylaw;
(e) the determination and application of the Exemption in
accordance with section 16.1 of this bylaw; and
(f) any other information or conditions provided by the
County.
(S.1(c), Bylaw 13-2026, March 31, 2026)
16.1 Notwithstanding any other provision of this bylaw or any
Tax Incentive Agreement entered into pursuant to this
bylaw, the County shall not determine the amount of or
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Cancellation of
Exemption
apply the Exemption for any taxation year until the
assessment for that taxation year is final:
(a)The County shall not determine the amount of or apply
the Exemption for a taxation year until after the time for
the Assessed Person to file an assessment complaint for
that taxation year has expired.
(b)If the Assessed Person files an assessment complaint,
the County shall not determine the amount of or apply
the Exemption until the assessment has been finally
determined by the Assessment Review Board, the Land
and Property Rights Tribunal, or the Court, and all
applicable appeal periods have expired.
(c) As a condition precedent to the application of the
Exemption for a taxation year, the Assessed Person must
pay all applicable taxes for that taxation year in full
when due. If the Assessed Person fails to pay all
applicable taxes in full when due, the County shall not
apply the Exemption for that taxation year.
(S.1(d), Bylaw 13-2026, March 31, 2026)
17 (1) If at any time after an Exemption is granted, the
County determines that:
(a) the Applicant or their application did not meet or
ceased to meet any of the criteria in which formed
the basis of granting the Exemption; or
(b) there was a breach of any condition of the Tax
Incentive Agreement;
the County may cancel the Exemption for the taxation year
or years in which the criterion was not met or to which the
condition applies.
(2) A written Decision to cancel an Exemption must be
provided to the Applicant and must include reasons for the
cancellation, identify the taxation year or years to which the
cancellation applies, and provide the date by which an
application for an appeal to Council must be made.
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Page 15
Appeal of Decision
PART IV - APPEAL TO COUNCIL
18 (1) An Applicant may appeal to Council in the following
situations:
(a) an Application for Exemption is refused or rejected;
(b) an Exemption is cancelled for one or more taxation
years;
(c) a Tax Incentive Agreement is cancelled; or
(d) content of the Tax Incentive Agreement is
inconsistent with the bylaw or the Municipal
Government Act.
(2) A request for appeal must be submitted in writing to
the Chief Administrative Officer within 30 days of:
(a) written notice being sent to the Applicant that an
application has been refused or rejected;
(b) written notice being sent to the Applicant that an
Exemption is cancelled for one or more taxation
years;
(c) written notice being sent to the Applicant that a Tax
Incentive Agreement is cancelled; or
(d) execution of a Tax Incentive Agreement
as the case may be.
(3) Council will consider an appeal at:
(a) a regularly scheduled meeting of Council; or
(b) a special meeting of Council.
(4) Remedies available to Council upon conclusion of an
appeal are:
Bylaw 62-2020
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Effective Date
(a) Council may uphold or revoke a decision of the
Chief Administrative Officer with respect to the
outcome of an application or cancellation of an
Exemption or Tax Incentive Agreement; or
(b) Council can revise or direct the Chief Administrative
Officer to revise a Tax Incentive Agreement.
(5) In accordance with section 460(7) of the Municipal
Government Act, complaints about a Decision may not
be made to the assessment review board.
PART V - COMING INTO EFFECT
19 This bylaw comes into effect January 1, 2021.
(NOTE: Consolidation made under Section 69 of the Municipal Government Act,
R.S.A. 2000, c.M-26 and Bylaw 24-2025 Section 70, and printed under the Chief
Administrative Officer's authority)
Bylaw 62-2020, passed by Council December 8, 2020
Amendments
Bylaw 29-2021, June 15, 2021
Bylaw 3-2022, January 18, 2022
(S.5, Bylaw 24-2025, July 8, 2025)
Bylaw 13-2026, March 31, 2026
Bylaw 62-2020
Page 17