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.