It wasn't so long ago that Calgary's burgeoning tech sector was being held up as a potential case study in diversification, a lighthouse to chart a course toward in a province rocked from oil-and-gas downturns.

Six months ago, many technology companies even said they had multiple positions left unfilled, citing the high skill levels required of any potential hires.

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But changes introduced in Alberta's provincial budget — including the elimination of grants many tech companies relied on — have forced Calgary's tech sector to wrestle with a very different future.

Five tax credits — including the Alberta Investor Tax Credit (AITC) and the Capital Investment Tax Credit — were axed in the budget, and are expected to save $400 million by 2022-23, according to the government.

Speaking at a Calgary Chamber of Commerce luncheon in October, Finance Minister Travis Toews said returning Alberta's budget to balance was "job No. 1," and that diversification of revenues was a "luxury."

Justin Brattinga, a spokesperson for the minister of economic development, trade and tourism, wrote in a statement that the tax credits were "administratively heavy and limited in scope."

"We are redirecting resources into an investment attraction strategy as part of budget 2020," he wrote. "This strategy will support growing sectors such as tech, data and telecom while also supporting the pillars of Alberta's economy such as energy and agriculture.

"We look forward to gathering input from the tech sector on the best way to attract investment across Alberta."

It's not all bleak — some, including ZayZoon CEO Darcy Tuer, believe that Alberta's desirability and livability will help to continue to draw talent to the province. Saturday, some of Calgary's biggest tech companies like Benevity and Showpass hosted a hiring fair as part of what's being called Tech West Collective.

But the new reality also means many smaller tech companies will have to find new ways forward — which, so far, has meant many have had to lay off employees and others have had to consider whether they have a future in the province at all.

'A shift away from innovation'

Chad Saunders, an assistant professor at the Haskayne School of Business at the University of Calgary, said the provincial budget seemed to indicate the government was looking to rely on larger companies.

"They've reduced the corporate tax burden, and that seems to be the current strategy. That's certainly good, that will definitely benefit the business community," Saunders said. "But when you look at the small companies, especially the small tech companies, often they don't really hit that burden anyway, because they're not making money yet. They're still early stage."

The Alberta budget slashes the corporate tax rate from 12 to eight per cent by 2022-23. However, that tax rate only applies to businesses making over $500,000 per year in profit.