The City of Lethbridge has approved a new tax incentive program for business investments. (Photo: Lethbridge News Now)

By David Opinko

City of Lethbridge approves business investment tax incentive

May 27, 2025 | 2:24 PM

Lethbridge City Council hopes to encourage more investments into the community.

Members have voted to approve the Business Development, Expansion and Retention Incentive Program at Tuesday’s meeting.

Mayor Blaine Hyggen says Lethbridge is open for business.

“This incentive program makes it easier and more affordable for new and existing companies to invest in Lethbridge,” says Hyggen.

Companies that spend at least $2 million or more in targeted industries can receive grants that cover the incremental increase in property taxes due to the new investment.

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The program supports businesses in agrifood and agribusiness, trade and logistics, and alternative and renewable energy.

The City’s CFO, Darrell Matthews, says, “These sectors were strategically chosen to align with the long-term economic development goals of Lethbridge, offering opportunities for innovation, sustainability and global competitiveness. They also align with the priorities of the provincial and federal governments for the southern Alberta region.”

In the first year, investors will get a 100 per cent reimbursement for the increase in the municipal portion of their property taxes. That will decrease to 80 per cent in year two, 70 per cent in year three, 60 per cent in year four, and finally, 50 per cent in year five.

As one example provided in a City document, if a company builds a new facility that would increase their property taxes by $100,000, they would receive a grant of $100,000 in the first year of operations, decreasing to $80,000 the following year, and so on.

In order to be eligible for funding, businesses must create at least five new ongoing jobs.

The City of Lethbridge says more details on the program will become available in the coming weeks at Lethbridge.ca