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Economic Diversification and Growth Enterprises (EDGE)

Amount:

No Fixed Amount

Type of Program:

Rebate


Description:

The Economic Diversification and Growth Enterprises (EDGE) Program provides incentives to encourage significant new business investment in the province to help diversify the economy and stimulate new private sector job creation, particularly in rural areas.

Comments on Funding:

The following incentives and benefits may apply:

  1. 1
    100% rebate on provincial corporate income tax and the provincial health and post-secondary education (payroll) tax. The tax “holiday” for eligible companies is 10 years within the Northeast Avalon area and 15 years outside the Northeast Avalon area, as defined in the Economic Diversification & Growth Enterprises Act,
  2. 2
    50% rebate on federal corporate income tax for the periods referenced above,
  3. 3
    A further five-year phase-out period of partial rebates on the provincial and federal taxes referenced above, declining by 20% in each year of the phase-out period,
  4. 4
    100% rebate on municipal property and/or municipal business taxes for 10 or 15 years, followed by a five-year phase-out of such rebates, where individual municipalities elect to participate in the EDGE program,
  5. 5
    access to unserved Crown land for $1.00 where such land is required to implement the company’s business plan.

When It Ends:

Ongoing

Deadline:

Rolling deadline

Eligibility:

The applicant must:

  • be new or existing businesses,
  • have the potential to create and maintain at least 10 new permanent jobs in Newfoundland and Labrador,
  • be prepared to make a minimum capital investment of at least $300,000, or generate incremental sales of at least $500,000 annually,
  • not be able to establish or expand in the province in the absence of the EDGE incentives, in preference to another location or at the time when it is proposed to do so,
  • have a substantial net economic benefit to the province,
  • not receive a direct competitive advantage over other businesses already established in the province, if provided EDGE status.

Application Steps:

1

Applicants must submit a signed, completed application with supporting documentation to the office of Department of Industry, Energy and Technology (IET) in their area.

Documentation Needed: 

​Applicant must submit:

  • a detailed business plan,
  • Project Summary & Benefits, including project description, project budget, ownership and management information, competition and marketing information, 
  • financial statements for the current and previous two to five years of operation including notes to the financial statements and the most recent interim statements. If a proprietorship, include recent and previous two to five years personal income tax returns including CRA T2125 form and Notice of Assessment., if existing businesses,
  • Income Statement and Opening Balance Sheet, if new businesses,
  • a Cash Flow Statement,
  • pro forma statements for the next two to five years including Balance Sheet and Income Statement with detailed assumptions supporting revenue forecasts,
  • copy of Articles of Incorporation,
  • personal Net Worth Statement for all shareholders and key management personnel (loans/equity investments only),
  • other information that may be relevant to their operation.

​For larger, more complex projects a more detailed Business Plan, a Feasibility Study and/or Market Study may be required.

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