Tax Credit

Enriched Investment Tax Credit

Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The Enriched Investment Tax Credit adds to the existing PEI Investment Tax Credit of 10%. It is applied to certain capital investments by manufacturing and processing companies. An enriched tax rebate for an additional 25% tax credit will be available for manufacturing and processing companies that invest in qualified property to implement high-productivity applications with a strong export focus.

Comments on Funding:

Funding is a tax rebate for an additional 25% tax credit.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

be located in Prince Edward Island,
be registered to do business and actively operating in Prince Edward Island,
manufacture, process, or develop goods or services primarily for export,
intend to make a qualified investment in qualified property to implement high-productivity applications with a strong export focus,
not have a defaulted outstanding debt obligation on file in the Province’s Central Default Registry,
operate within one of these strategic sectors: bioscience, aerospace and defence, advanced manufacturing and processing, renewable energy and clean technology, information and communications technology, creative and cultural industries (first-of-its-kind exportable goods or services in other sectors may be considered).

Application Steps:

are encouraged to consult with an Innovation PEI Business Development Officer for guidance on the suitability of the project and the application process,

must claim the 10% investment tax credit without reference to government beyond the completion of the appropriate form with their corporate income tax return,

must apply for the additional 25% tax rebate under the Enriched Investment Tax Credit through Innovation PEI, prior to purchasing the qualified property,

must accept the Letter of Offer, if offered,

must submit a cost summary to verify the amount of the qualifying property, on completion of the purchase and implementation of the machinery and equipment investment. Once the amount of qualifying property has been confirmed, the amount of the tax credit will be calculated,

must submit the company’s annual income tax filing and notice of assessment, to Innovation PEI, for the rebate cheque to be issued.

Documentation Needed:

Applicants must submit:

1
the online application form,
2
a description of the business and an outline of its history,
3
Financial Statements for the previous two years, if existing business,
4
a completed business plan, if new businesses,
5
description of the proposed project or activity in relation to the products and/or services delivered by the business,
6
detailed description of the economic benefits to the organization and to Prince Edward Island,
7
detailed information on the estimated costs of the proposed project or activity (cost estimates should be supported by written quotations),
8
source of funds for the project (for example, lending institutions, banks, government loans and/or grants),
9
explanation of the business's current market position and projected market, outlining any increases in market share,
10
a list of all shareholders and key management personnel.

Program Contact:

Enriched Investment Tax Credit

Enriched Investment Tax Credit Guidelines

Specialized Labour Tax Credit

This program is currently closed.

Amount:

No Fixed Amount

Type of Program:

Tax Credit

Description:

The Specialized Labour Tax Credit provides an incentive for workers with specialized expertise or skills not yet available in Prince Edward Island to accept employment here.

Comments on Funding:

The Specialized Labour Tax Credit applies to personal income tax paid to a maximum of 17% on the eligible income earned by an eligible individual. The credit is effective for one year from the employment start date.

When It Ends:

Ongoing

Deadline:

Rolling Deadline

Eligibility:

The applicant must:

a Prince Edward Island company,
active in a strategic sector such as: export-focused manufacturing and processing, interactive, information and communication technology, aerospace, bioscience, renewable energy,
whish to hire a specialized worker who migrates to the province for a specific position. The employer must demonstrate that the position was previously advertised in local print news media and could not be filled from the existing PEI labour pool.

Application Steps:

The applicant/company must:

apply to Innovation PEI for to Innovation PEI for a Specialized Labour Tax Credit certificate. If the application meets the criteria and the employee is approved, Innovation PEI will issue a Specialized Labour certificate to the eligible employee.

apply for the tax credit before making an employment offer. The company will not be approved for both the Specialized Labour Tax Credit and the Innovation and Development Labour Rebate for the same position.

To claim the rebate, the employee submits the certificate and a copy of the Notice of Assessment and T4 to Innovation PEI.

Documentation Needed:

The applicant must submit:

the compiled application form,
a business and a marketing plan project,
a feasibility or market study,
a competitive analysis,
a Resume,
the consultant’s proposal(s) and the study’s terms of reference, if the application concerns a study.

Other Things to Note:

The program is not listed among Innovation PEI programs.

Program Contact:

All Programs - Innovation PEI

Share Purchase Tax Credit

This program is currently closed.

Amount:

$35,000

Type of Program:

Tax Credit

Description:

The Share Purchase Tax Credit provides a tax rebate to a Prince Edward Island personal individual, aged 19 or over, who invests in an eligible Prince Edward Island company. The company issuing the eligible share must apply for the Share Purchase Tax Credit.

Comments on Funding:

Funding is a tax rebate on Prince Edward Island personal income tax in the amount of 35% of the value of an eligible investment in an eligible PEI corporation.
The maximum credit that an individual may claim in any taxation year is $35,000.

When It Ends:

Closed

Deadline:

Rolling deadline

Eligibility:

The applicant must:

a Prince Edward Island company,
active in a strategic sector such as: export-focused manufacturing and processing, interactive, information and communication technology, aerospace, life sciences, renewable energy,
permanently established in the province with 75% or more of its payroll to employees residing in Prince Edward Island.

Application Steps:

The applicant/company must:

apply to Innovation PEI for a Share Purchase Tax Credit certificate by completing the Business Development Application (pdf or online). If the application meets the criteria, Innovation PEI will issue a Share Purchase Tax Credit certificate to the company, setting out the cost of the qualified share and other information.

provide the certificate to the investor upon receipt of compensation for the share.

The investor can claim the rebate by submitting the Share Purchase Tax Credit certificate with the investor's notice of assessment to Innovation PEI. Application must be submitted before any financial or legal commitment is made on the project.

Documentation Needed:

The applicant must submit:

the compiled application form,
a business and a marketing plan project,
a feasibility or market study,
a competitive analysis,
a Resume,
the consultant’s proposal(s) and the study’s terms of reference, if the application concerns a study.

Other Things to Note:

The program is not listed among Innovation PEI programs.

Program Contact:

All Programs - Innovation PEI

Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit

Amount:

$2,000,000

Type of Program:

Tax Credit

Description:

The Newfoundland and Labrador Interactive Digital Media (IDM) is a refundable tax credit based on eligible salaries and eligible remuneration incurred by an eligible corporation for the development of interactive digital media products during the period of January 1, 2015 to December 31, 2024 inclusive. Applicants must apply to the Minister of Finance for a tax credit certificate within six months of the end of each taxation year.

Comments on Funding:

Funding is 40% of qualifying expenditures.
Eligible expenditures include eligible salaries and 65% of eligible remuneration.
The credit value is limited to $40,000 per employee per year and $2 million per company, or group of associated companies, per year.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be a corporation developing an interactive digital media product,
be primarily carrying on the business of interactive digital media development,
have a permanent establishment in the province of Newfoundland and Labrador,
be a taxable Canadian corporation,
hold a valid registration certificate under the IDM program.
be incorporated under the Corporations Act or an Act of the Parliament of Canada or another Canadian province,

Application Steps:

The application process is a two part process:

first apply for a registration certificate as an eligible corporation. It is recommended that applications be made through the NL Film Development Corporation (part I application form),

apply to the Minister of Finance for a tax credit certificate within 18 months of the end of each taxation year (part II application form),

file the T2 return.

Documentation Needed:

Applicants must submit the following with the Part I application:

incorporating documents, including any subsequent amendments since incorporation,
copy of Corporate Income Tax Return (T2) Schedules 9, 23 and 50 (Required when the corporation is associated with any other corporation,
corporate chart, if the corporation conducts business with non-arm’s length corporations,
description of the project, including: technical specifications, product documentation, storyboard, interactive features, images, text and sound,
development timeline,
list of estimated eligible salaries,
list of estimated eligible remuneration,
detailed list of estimated product costs,
financial statements for the preceding taxation year.

Applicants must submit the following with the Part II application:

financial statements for the taxation year in which the credit is being claimed,
individual declaration of residency forms to support Schedule B (Eligible Salaries),
statement of eligible remuneration form to support Schedule C (Statement of Remuneration),
workplace health and safety compensation commission of Newfoundland and Labrador annual employer payroll statement for the taxation year,
proof of payment for eligible remuneration paid within 60 days after the end of the taxation year as indicated in Schedule C.

Program Contact:

Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit

Interactive Digital Media Tax Credit Registration Form (PART I)

Interactive Digital Media Tax Credit Certificate Application (PART II)

Newfoundland and Labrador Interactive Digital Media (IDM) Tax Credit – Guidelines

Film and Video Tax Credit

Amount:

$5,000,000.00

Type of Program:

Tax Credit

Description:

The Film and Video Tax Credit is a refundable provincial corporate income tax credit and is provided for eligible local film projects at a rate of 40% of eligible local labor costs, but may not exceed 25% of production costs.

Comments on Funding:

Funding is 40% of eligible local labor costs, but may not exceed 25% of production costs. The maximum tax credit within a 12 month period that may be received by an eligible corporation, together with all corporations associated with that corporation, in respect of all eligible projects commenced on or after July 1, 2021 is $5,000,000.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

be a corporation incorporated under the Corporations Act or an Act of the Parliament of Canada or of the legislature of a province and have a permanent establishment in the province,
primarily carry on the business of film, television or video production,
pay at least 25% of salaries and wages with respect to an eligible project in Newfoundland and Labrador to eligible employees (for work performed in the province),
be producing an eligible project (a film television program or series or video program and the subject of the proposal is drama, variety, animation, children’s programming, music programming, an informational series or a documentary).

Application Steps:

first apply for eligibility to the Newfoundland and Labrador Film Development Corporation prior to the commencement of production,

apply for the tax credit once the project is completed, and financial statements and cost reports finalized,

attach the tax credit certificate to the T2 return.

Documentation Needed:

Applicants must provide the following information:

the estimated total production costs and the estimated eligible salaries,
the estimated value of the tax credit
a financing plan including recoupment schedule,
the expected revenue from the sale of the production,
a script,
other information the minister may require.

Other Things to Note:

The Film and Video Tax Credit is administered by the Newfoundland and Labrador Film Development Corporation (NLFDC) for the Newfoundland and Labrador Department of Finance.

Program Contact:

Film and Video Tax Credit

NLR 3/99 - Film and Video Tax Credit

Newfoundland and Labrador Film Tax Credit