Submission: 2026 Alberta Budget

On behalf of the Calgary Chamber of Commerce and our member businesses, we are pleased to provide our formal submission to the Ministry of Treasury Board and Finance regarding Budget 2026. 

The Calgary Chamber recognizes the Government of Alberta’s continued commitment to supporting businesses while navigating significant economic pressures and fiscal constraints. Population growth is placing added strain on schools, hospitals and other public services, and the government’s focus on cost management reflects prudent fiscal discipline. Balancing these priorities while fostering economic resilience remains critical to the province’s long-term prosperity. 

Alberta businesses continue to face affordability and operational challenges. The most recent Canadian Survey on Business Conditions shows business optimism at a three-year low of 54 per cent, with cost pressures dominating concerns and 37 per cent of businesses expecting declining profitability in the first quarter of 2026. Addressing these challenges is essential to supporting business competitiveness, investment and growth across the province. 

The Calgary Chamber welcomes recent government actions that support workforce development and sector competitiveness, including the new aviation maintenance facility and simulator, modernization of resource sector regulation, and investments to help protect communities and businesses from drought and flood risks. These initiatives demonstrate that strategic, targeted investments can help businesses manage risk, improve productivity and grow their operations. 

We also commend the government’s engagement with municipal, provincial and federal partners to advance interprovincial trade and regulatory alignment, including the Canada-Alberta Memorandum of Understanding. Continued efforts to reduce trade barriers and improve mobility will strengthen Alberta’s supply chains, enhance competitiveness and support businesses in reaching new markets. 

With Budget 2026, the Government of Alberta has the opportunity to continue advancing policies and investments that address the real-world challenges facing businesses today, while maintaining strong fiscal leadership for the long-term benefit of all Albertans. 

In consultation with our members, who represent over 400,000 employees in Calgary and beyond, we are pleased to provide the attached submission detailing recommendations from Calgary’s business community. We encourage the government to:   

• Enhance regulatory certainty and coordination across jurisdictions. 

• Accelerate the removal of interprovincial trade and transportation barriers. 

• Provide robust policy and regulatory frameworks for investment. 

Recommendations for inclusion in Budget 2026 

Budget 2025 advanced several investments crucial to supporting Alberta’s business community. The Calgary Chamber continues to advocate for important initiatives to support the business community and its workforce, with specific recommendations detailed below.  

Affordability & Red Tape 

• Lower the Insurance Premium Tax (IPT) to address a growing cost burden on small and medium sized businesses. With 58 per cent of businesses stating cost related obstacles as a concern, reducing the IPT can provide immediate relief, especially in industries where insurance premiums are a significant operating cost.   

• Eliminate the provincial small business tax to strengthen Alberta’s competitiveness and support business growth. Alberta’s two per cent small business tax leaves entrepreneurs at a disadvantage compared to neighbouring prairie provinces that have reduced or eliminated this levy. Eliminating the tax would return anywhere from $2,000 to $10,000 annually per small business, capital that would be reinvested directly into hiring, equipment and day-to-day operations. 

• Expand competitive procurement within the Alberta Government by decoupling large contracts and right-sizing administrative and bonding requirements for low-risk procurements to improve access for small, medium-sized and Indigenous-owned businesses. 

• Support affordability by working with the federal government to secure a long-term childcare agreement. Greater certainty on childcare affordability avoids costly increases for working families, supports labour force participation and eases cost pressures for employers. A long-term agreement would provide stability for providers and families while helping keep Alberta an affordable place to live and work.  

Talent, Labour & Workforce Development 

• Continue to address obstacles facing newcomers in receiving Canadian equivalency for credentials acquired abroad. This includes implementing the recommendations made by the Foreign Credential Advisory Committee in its final report to better enable internationally trained professionals to work in their fields. Doing so would strengthen Alberta’s labour force, support economic growth and help address workforce pressures across priority sectors. 

• Invest in a third round of the Targeted Enrolment Expansion (TEE) program to increase student capacity for post-secondary institutions in sectors of emerging economic importance, including energy, aerospace, advanced manufacturing, agri-food and logistics. 

• Ensure predictability in post-secondary funding. With student enrollment in Alberta’s post-secondary institutions expected to grow by about 21 per cent by 2033–34, stable and predictable operating funding will be essential to maintaining education quality and preparing a workforce ready to meet Alberta’s future economic needs.  

• Continue investment in post-secondary research. Continued support for post-secondary research, both through core funding and strategic research programs, will reinforce the provinces’ ability to attract talent, drive innovation and support economic diversification across multiple sectors. 

• Continue employer-led training and productivity supports. The Canada–Alberta Productivity Grant support employer-driven skills development and productivity improvements and should remain an important part of Alberta’s workforce and competitiveness strategy. 

• Expand the use of multi-year, outcomes-based funding agreements for not-for-profit organizations to include operating costs. There are over 27,000 charities and non-profit organizations, that employ almost 90,000 Albertans and contribute over $6 billion dollars to Alberta’ s GDP. Providing greater flexibility within these funding agreements, such as supporting core operational costs, will help these organizations focus on achieving outcomes, improving service continuity and supports workforce retention, rather than focusing on managing short-term funding uncertainty. 

Diversification & Competitiveness  

• Finalize the launch of the Alberta Carbon Capture Incentive Program (ACCIP). We welcome the government’s commitment to ACCIP and is encouraged by progress to date, including alignment with the federal government through the Canada-Alberta Memorandum of Understanding. Providing certainty on program delivery will help proponents advance final investment decisions, strengthen investor confidence and reinforce Alberta’s competitiveness for large-scale carbon capture and emissions-reduction projects. 

• Maintain the Alberta Petrochemicals Incentive Program (APIP)’s providing long-term certainty through a multi-decade framework, such as a 20-year timeline, with clear milestones tied to project investment would be aligned with Alberta’s global competitors. It would also give investors’ confidence, unlock private capital, support value-added growth and deliver tangible economic benefits. 

• Develop an Alberta Aerospace Strategy for applied research and workforce development. Alberta’s aerospace sector is innovation-driven and rapidly evolving. To remain competitive, the province should fund applied research in aerospace technologies and manufacturing, support workforce re-skilling and help companies adopt emerging technologies such as electric propulsion, AI-enabled maintenance and advanced manufacturing. 

• Enhance Alberta’s Film and Television Tax Credit (FTTC) by strengthening incentives for post-production work completed in Alberta. While post-production is currently eligible, Alberta lacks a targeted, competitive incentive comparable to British Columbia and Ontario, leading many productions to move post-production out of province. Strengthening this component of the FTTC would help retain the full value chain in Alberta, support local post-production businesses, and improve the province’s competitiveness as a film and television production hub. 

• Accelerate the removal of interprovincial trade barriers. While Alberta’s participation in the interprovincial pilots aimed at reducing regulatory barriers in the is encouraging, businesses continue to face inconsistent rules, duplicative requirements and administrative burden when operating across provincial borders. Moving toward permanent mutual recognition and harmonization of regulations and training requirements would reduce costs, improve supply chain efficiency and strengthen Alberta’s competitiveness. 

Infrastructure 

• Advance a west coast pipeline. This is particularly important given the capacity constraints at west coast port infrastructure. Improving market access is essential to the sector’s long-term viability, especially amid growing trade uncertainty and a steady decline in exports to the United States. A new pipeline, advanced and de-risked by the Government of Alberta, would attract investment and promote economic growth across the country. 

• Accelerate connectivity projects to ensure full cellular coverage along highways and rural regions. Where market deployment is uneconomic, targeted provincial and federal support should be used to close gaps. Reliable cellular infrastructure is critical for public safety, tourism, economic growth and workforce mobility. 

• Prioritize investments in supply chain infrastructure, including rail and regional manufacturing capacity. Given frequent national and international trade challenges as a result of labour disruptions, extreme weather events and a lack of supply chain infrastructure, capitalizing on opportunities to bolster our supply chain infrastructure is critical to ensure Calgary and Alberta are viewed as reliable trading partners. 

• Collaborate on a targeted approach to rebuild underserved air routes, such as a supported kick-starter program. Supporting regional air services will improve mobility, stimulate economic activity in smaller communities and strengthen Alberta’s broader transportation network. 

• Support municipalities in using prudent, diversified financing tools to advance critical infrastructure amid population growth. Clear guidance and coordination on financing tools, such as municipal bonds, can help cities accelerate projects, protect taxpayers, and maintain service levels without adding pressure to provincial budgets. 

• Support the City of Calgary’s ongoing work to address issues of public safety and social disorder. The 2024 Downtown Safety Leadership Table report outlined 28 recommendations, including opportunities to align programs, streamline services and improve outcomes. By working collaboratively, the province can help strengthen downtown safety, protect small businesses, attract investment and ensure public spaces remain safe and welcoming for families and communities. 

About the Calgary Chamber of Commerce

The Calgary Chamber exists to empower our business community to advance a prosperous Calgary and Canada. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.