Expanding Alberta’s Energy And Digital Infrastructure: Select Tax Considerations For Major Projects

On May 15, 2026, Canada and Alberta entered into the Implementation Agreement that establishes the framework for implementing the Memorandum of Understanding (MOU) executed by the parties on November 27, 2025. The Implementation Agreement reflects the parties’ intention to pursue economic growth and investment, advance priority projects, increase Alberta’s oil, natural gas and electricity production to meet domestic and international demand, diversify energy exports, reduce emissions and support progress toward net-zero greenhouse gas emissions by 2050.

This update discusses select tax considerations for stakeholders in connection with the following components of the MOU: (i) the proposed oil pipeline to global markets (Oil Pipeline Project), (ii) the extension of the federal Carbon Capture, Utilization, and Storage Investment Tax Credit (CCUS ITC) to enhanced oil recovery (EOR), and (iii) Alberta's policy framework for artificial intelligence (AI) data centres.