Advanced Marine Technology Tax Rebate

The Province of Prince Edward Island (PEI) has launched the Advanced Marine Technology (AMT) tax rebate as a strategic initiative to bolster the region's burgeoning marine technology sector. This program offers a full yearly rebate on all corporate income tax paid to the province for up to 10 years, targeting companies that demonstrate robust research capacities, high employment, and significant export activities. Modeled after the successful aerospace industry tax incentives, the AMT tax rebate aims to foster innovation, create jobs, and establish PEI as a hub for advanced marine technology.

PEI's marine technology sector has seen explosive growth over the past few years. In 2015, the sector accounted for 8.3% of the province's total exports, with staffing numbers close to 200 and sales exceeding $100 million. The emergence of this industry is supported by several key factors: 1. **Stable Economy:** A strong, stable economy provides a conducive environment for business growth. 2. **Skilled Labour:** The availability of a skilled workforce, supported by marine-based training programs at Holland College and technical graduates from the new engineering school at the University of Prince Edward Island. 3. **Infrastructure:** The presence of four ports facilitates easy access for exporting goods. 4. **Government Support:** Initiatives like the AMT tax rebate are critical in providing financial incentives to businesses.

To benefit from the AMT tax rebate, companies must meet specific eligibility criteria: 1. **Company Status:** Both new and existing advanced marine technology companies can apply. 2. **Minimum Staff Requirements:** Companies must employ a minimum of 15 PEI staff with a payroll of at least $700,000 per annum. 3. **Sector and Export Focus:** Companies must operate within the AMT sector and engage in exporting from PEI. 4. **Research Capacity:** Eligible companies should have proven research capacities and be involved in the development of innovative marine technologies aimed at global applications.

The AMT tax rebate offers significant financial advantages to eligible companies: 1. **Tax Savings:** A full yearly rebate on all corporate income tax paid to the province for up to 10 years, which can greatly reduce the effective tax rate and improve profitability. 2. **Resource Allocation:** The tax savings can be reinvested into further research and development, leading to innovative solutions and improved competitiveness. 3. **Attracting Investment:** The rebate can serve as a magnet for attracting new investments and talent to PEI, further bolstering the sector.

Companies interested in the AMT tax rebate should consult with Innovation PEI staff for detailed guidance on the application process. Although meeting the minimum criteria is essential, not all projects will necessarily receive funding.

1. **Initial Consultation:** Reach out to Innovation PEI to discuss your company's specific situation and determine your eligibility. 2. **Documentation:** Prepare the necessary documentation to demonstrate eligibility, including proof of staff numbers, payroll, and sector activities. 3. **Submission:** Submit your application and await confirmation. 4. **Ongoing Compliance:** Ensure ongoing compliance with eligibility criteria to maintain rebate benefits over the 10-year period.

For more details, you can contact: Doug MacDonald, Aerospace, Defence, and Advanced Manufacturing Business Attraction and Emerging Sectors 94 Euston Street, PO Box 910 Charlottetown, PE C1A 7L9 Telephone: (902) 368-6300 Facsimile: (902) 368-6301 Toll-free: 1-800-563-3734 Email: business@gov.pe.ca

The Advanced Marine Technology tax rebate is a powerful tool designed to incentivize growth and innovation within PEI's marine technology sector. By offering substantial tax rebates, the province hopes to attract and nurture companies that are at the forefront of marine technology innovation. This initiative not only provides financial relief to businesses but also strengthens the local economy, creates high-quality jobs, and positions PEI as a leader in the advanced marine technology industry. For businesses in this sector, the AMT tax rebate represents a significant opportunity to enhance their growth trajectory and make meaningful contributions to the global marine technology landscape.