Provincial Government

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

Aerospace and Defence Tax Rebate

Amount:

No Fixed Amount

Type of Program:

Rebate

Description:

The Aerospace Tax Holiday provides all eligible aerospace and defence-related companies a full rebate annually on all corporate income tax paid to the province for operations conducted in Prince Edward Island. There’s also a full rebate annually of all real property tax attributable to ownership or rental of facilities in Prince Edward Island.

Comments on Funding:

The incentive is a tax rebate.

When It Ends:

Ongoing

Deadline:

December 2022

Eligibility:

Applicants must be:

new or existing aerospace firms operating in the Province of Prince Edward Island,
engaged in aviation or aerospace/defence-related businesses, which may include, but is certainly not limited to, original equipment manufacturers, strip and paint shops, repair and overhaul operations, training and various aviation support businesses,
aerospace companies in eligible activities that have 20 or more employees or a payroll in excess of $700,000,
aerospace companies engaged in eligible activities that categorize them in the “Aerospace and Defence” sector as defined by the Province of Prince Edward Island.

Program Contact:

Aerospace and Defence Tax Rebate

Freight Transportation Fuel Efficiency Program (FTFEP)

Amount:

No Fixed Amount

Type of Program:

Rebate

Description:

The Freight Transportation Fuel Efficiency Program (FTFEP) is an application-based grant program that provides rebates to retrofit existing heavy-duty trucks and trailers registered and plated in Newfoundland and Labrador, to reduce fuel consumption and greenhouse gas emissions. This includes anti-idling equipment (e.g., auxiliary power units) and aerodynamic technologies (e.g., trailer skirts to reduce fuel consumption).

Comments on Funding:

Funding for vehicles is as follows:

30% up to a cap of $4,000 per device for auxiliary conventional power units,
50% up to a cap of $6,000 per device for auxiliary electric power units,
30% up to a cap of $3,000 per device for cabin heaters/coolers.

Funding for trailers is as follows:

30% up to a cap of $3,000 per device foot side skirts and boat trail (class 8 only),
30% up to a cap of $5,000 per device for diesel-electric refrigeration units,
30% up to a cap of $7,500 per device for electric refrigeration units.

When It Ends:

Ongoing

Deadline:

March 31, 2022

Eligibility:

The applicant must:

be a private sector, for-profit organization, including carriers and owner-operators,
be a municipal government established by or under provincial statute or a municipal organization,
be a not-for-profit organization,
be an Indigenous government or organization,
be a public sector body or board established under provincial legislation,
be the registered owner or lessee of the eligible vehicle or trailer for which upgrades are sought, and the registration must be valid at the time of application. The applicant must have the legal authority to modify the vehicle or trailer for which the fuel saving device(s) is to be installed (proof of ownership or permission of the lessor will be required).
have a satisfactory audited or satisfactory unaudited carrier safety rating,
consent to an audit of the vehicle or trailer for which upgrades are sought,
consent to provide data to the Department relating to fuel consumption, vehicle/trailer operational profile (e.g., kilometres driven) and GHG emissions for a one-year period after the fuel saving device(s) has been installed.

Application Steps:

The applicant must:

submit a signed and completed application form with supporting documentation by email at climatechange@gov.nl.ca Or by regular mail to the Department of Municipal Affairs and Environment, the Climate Change Branch.

obtain an Approved Application Letter before installing fuel saving devices in these cases.

Documentation Needed:

The applicant must submit:

the application form,
purchase and/or installation quote(s) from a dealer or vendor for the fuel saving devices for which a rebate is sought, including manufacturer and model number of fuel saving devices. The applicant’s name must be the same on both the application form and the quote provided.
copy of valid vehicle registration (for each tractor/vehicle and trailer to be retrofitted),
proof of tractor/vehicle or trailer ownership or, in the case of a lessee, proof that the applicant has authority to modify the tractor/vehicle or trailer by the lessor for each tractor/vehicle and trailer to be retrofitted,
copy of valid Commercial Motor Vehicle Inspection Certificates (for each vehicle or trailer to be retrofitted),
copy of the companies’ short carrier profile, if applicable.

Other Things to Note:

The FTFEP will be implemented over three fiscal years (2019/20-2021/22) by the Department of Municipal Affairs and Environment (MAE). This Program is supported by a total of $3.2 million in joint provincial and federal funding through the Low Carbon Economy Leadership Fund, with $1.73 million from the Provincial Government and $1.47 million from the Federal Government.

Program Contact:

Freight Transportation Fuel Efficiency Program (FTFEP)

pdf-ftfep-program-guidelines.pdf