Back to Bills

Finance Overhaul: Data Levy, Disability Redesign

Full Title:
Financial Statutes Amendment Act, 2025 (No. 2) ($)*

Summary#

  • This is an omnibus finance bill that updates many Alberta laws. Its biggest moves are a new levy on large data centres (starting in 2026) and a major re‑design of disability benefits. It also adds legal protections for some public bodies, tightens tax-avoidance rules, and increases penalties for illegal tobacco sales.
  • Key changes include:
    • Creates a Data Centre Levy on large facilities’ computing equipment, paired with a corporate tax credit.
    • Replaces the single AISH program with two streams and moves benefit amounts and rules into regulations.
    • Gives the Public Trustee and Public Guardian new, targeted decision powers about finances and care when someone can’t decide for themselves.
    • Grants immunity from lawsuits to AIMCo (the public investment manager) and the Crown for actions before Nov. 7, 2024.
    • Strengthens Alberta’s anti-avoidance rule for personal income tax and expands securities rules to address misleading market information.
    • Raises the cap for the Heroes’ Compensation program and allows pay and expenses for parliamentary secretaries.
    • Increases penalties for black-market tobacco and adjusts several technical laws.

What it means for you#

  • People with disabilities and families

    • Alberta creates two programs:
      • Assured income for people with a severe disability that permanently prevents employment (living allowance, child, personal, and health benefits).
      • A new Alberta disability assistance program for people whose disability substantially impedes work (living allowance, child, personal, health benefits, plus employment supports).
    • Existing AISH clients will move to the new disability assistance program at transition. The law says new amounts “may be less” than before.
    • Benefit amounts and future increases will be set by regulation, not fixed in the Act. Automatic annual increases in the old schedule are repealed.
    • You must report changes in disability, income, or assets. A financial administrator can be appointed to manage benefits (in some cases without your consent, per regulations).
    • Appeals continue through minister‑appointed panels, but there is no appeal right about the one‑time transition between programs.

  • Adults who may lack capacity, caregivers, and health providers

    • If a person’s agent named in a personal directive is unavailable, the Public Guardian can be picked to make specific health decisions.
    • When a decision is being made about where an adult will live (short or long term), a health provider can assess the adult’s capacity to make related financial decisions. If the adult lacks capacity and no one else is authorized, the Public Trustee can make only those financial decisions needed to support the housing decision. The adult or relatives can ask a court to review the assessment or decision.

  • Data centre operators and co‑location facilities

    • Starting Jan. 1, 2026, large sites (75 MW or more, including related facilities counted together) owe a yearly levy on computing equipment in Alberta.
    • The levy depends on the cost of equipment (newer equipment is weighted more) and the share of electricity drawn from the grid versus “new” generation added under contracts or self‑generation. Effective rates run roughly between 1% and 2% of the weighted equipment cost.
    • Operators must file returns and can face penalties and interest for late or false filings. The province can sign agreements (up to 25 years) to set payment timing and method, but not for less than the standard total. A corporate income tax credit lets companies offset Alberta corporate tax with levy amounts paid.

  • Individual tax filers

    • Alberta’s general anti‑avoidance rule is tightened (effective for transactions in 2024 and later). It adds a “main purpose” test, considers economic substance, and targets schemes that preserve amounts for future tax benefits. This may affect aggressive tax planning.

  • Indigenous communities

    • The province guarantees the debts and liabilities of the Alberta Indigenous Opportunities Corporation, which may lower borrowing costs for projects it backs.
    • Computing equipment that is the personal property of an Indian or band on reserve land is not subject to the Data Centre Levy.

  • Investors and public companies

    • The securities regulator can halt trading if there is inadequate, inaccurate, or misleading public information that could harm investors.
    • “Forward‑looking information” is clarified, and regulations may set safe harbours or defences for disclosures (including climate‑related).

  • Families of fallen first responders

    • The Heroes’ Compensation program’s annual cap doubles from $1.5 million to $3 million per fiscal year.

  • Smokers, retailers, and distributors

    • Penalties increase: people who buy, possess, store, or sell unmarked tobacco or black stock can be assessed a penalty equal to three times the tax that would have applied.

  • MLAs and government

    • Parliamentary secretaries can receive allowances, have expenses reimbursed, and receive services as authorized by Cabinet.

  • Estates and unclaimed property

    • The Public Trustee can help arrange the burial of unclaimed deceased persons and recover costs from the deceased’s funds.
    • Unclaimed property/estates held by the Public Trustee will generally be held for 5 years (down from 10) before transfer to the General Revenue Fund. No interest is paid after transfer if later claimed.
    • Some previous limits on court actions involving represented adults are repealed; procedures may change. The Public Trustee has good‑faith immunity.

Expenses#

Estimated fiscal impact: No publicly available information.

Proponents' View#

  • The Data Centre Levy makes very large operations contribute fairly and nudges them to add new power generation or self‑supply, easing strain on the grid, while the tax credit avoids double taxation.
  • Disability supports are modernized and better targeted, adding employment supports for those who can work while protecting those unable to work.
  • Letting the Public Guardian and Public Trustee step in quickly helps vulnerable adults get timely health and housing decisions.
  • Stronger anti‑avoidance rules protect Alberta’s tax base and improve fairness for ordinary taxpayers.
  • Securities changes help the regulator act fast against misinformation and disorderly markets, improving investor protection.
  • Raising Heroes’ Compensation strengthens support for families of fallen heroes.
  • The Crown guarantee for Indigenous investment projects can unlock capital and partnerships by lowering financing costs.

Opponents' View#

  • The Data Centre Levy’s complexity and added costs could deter investment, push projects to other provinces, or encourage operators to split into smaller sites to stay under the threshold.
  • Moving benefit amounts and increases into regulations, ending the automatic escalator, and shifting many current AISH clients to a new program that “may” pay less creates uncertainty and could reduce household incomes for people with disabilities.
  • Granting broad legal immunity to AIMCo and the Crown for past actions removes recourse for pension plan members who believe they suffered losses.
  • Expanded Public Trustee powers and shorter hold times for unclaimed property may reduce time for families to claim estates, and no interest after transfer may feel unfair.
  • Tougher tobacco penalties may be seen as excessive for individual possession cases.
  • Paying allowances to parliamentary secretaries increases political office costs without clear performance measures.