As part of the Climate Leadership Plan, the Alberta Government is rolling back the small business tax rate from three to two percent as a way to offset the new carbon levy.

This change will provide $185,000,000 to small businesses which in turn can be reinvested into local businesses; for example, in the form of energy efficiency or to hire new workers.

Sarah Hoffman, Deputy Premier, says the Provincial Government recognizes the importance of small businesses and the opportunities they bring.

“They provide jobs, investment and business diversity to our towns and cities. They contribute to roughly a third of the provincial economy and employ over half a million people. Our government knows how important small businesses are to the future of this province.”

This ties Alberta with Saskatchewan as the second lowest provincial tax rate in Canada.

Alberta also pays fewer taxes over all in comparision to other provinces due to having no provincial sales tax, no pay roll tax and no health care premiums.

Tara Sue Moore, Owner of Earth Rocks!! and Spirit of Oneness in Cochrane says she believes the reducing the taxes is good but it won't be right away that businesses will benefit.

“Reduce the taxes. Give more freedom with what they do with their money and that does give some sort of a balance to the carbon levy. People are going to struggle this year and then the benefit will come afterwards. So it's good. I just wish that there's a way it could be at the exact same time."

Moore adds businesses will hire new staff when their business expands to that point and not because the government gives them a tax cut.

The small business tax rate cut goes along with the Climate Leadership Plan which protects small businesses, reduces carbon emissions, diversifies the economy and supports new jobs.