Aerospace Tax Holiday

Q: How much funding can be received?

There is no informations about how much funding can be received.

Q: What is the deadline to apply?

The deadline to apply is not specified.

Q: Is the Aerospace Tax Holiday a grant, loan, or tax credit?

Aerospace Tax Holiday is a Tax Credits

Q: Who are the financial supporters of the Aerospace Tax Holiday?

Aerospace Tax Holiday is funded by Government of Prince Edward Island, Innovation PEI

Q: Who is eligible for the Aerospace Tax Holiday program?

To be eligible for the Aerospace Tax Holiday program, you must: • New aerospace firms to Prince Edward Island. • Existing firms already operating in the Province of Prince Edward Island. • Aerospace companies engaged in eligible activities with 20 or more employees or a payroll in excess of $700,000.

Q: Who can I contact for more information about the Aerospace Tax Holiday?

You can contact Government of Prince Edward Island.

Q: Where is the Aerospace Tax Holiday available?

The Aerospace Tax Holiday program is available the province of PE.

Q: Are startups eligible for the Aerospace Tax Holiday program?

Yes, startups are eligible to apply for the Aerospace Tax Holiday program.

Last Update: January 24, 2025

PE, Canada

No corporate tax for aerospace and defence employers in PEI

At a glance

Eligible Funding

No Condition

Timeline

Unspecified

Financing Type

Tax Credits

Eligible Industries

Manufacturing

Funds Providers

Unspecified

Program status

Open

Overview

Aerospace and defence related companies with more than 20 employees and a payroll over $700,000 get a full refund of all provincial corporate income tax paid.

Financing terms and conditions

The Aerospace Tax Holiday provides significant tax incentives aimed at supporting aerospace and defence-related businesses in Prince Edward Island. These financial modalities are designed to alleviate tax burdens, thereby encouraging investment and growth within the sector.

Full annual rebate on all corporate income tax paid to Prince Edward Island for eligible aerospace and defence-related operations conducted within the province.
Complete yearly rebate of real property tax for ownership or rental of facilities in Prince Edward Island by eligible companies.
Tax rebate incentives apply to eligible companies engaged in aviation or aerospace/defence-related businesses, including original equipment manufacturers, repair and overhaul operations, and various aviation support businesses.
The tax rebate program initially commenced on January 1, 1993, providing a 20-year incentive, which was extended for an additional 10 years in 2012.

Activities funded

This tax rebate incentive program facilitates economic development in Prince Edward Island by encouraging aerospace and defence-related businesses to establish or expand their operations at Slemon Park. Eligible projects and activities include operational and maintenance-related endeavors within the aerospace and defense sectors.

Establishment of original equipment manufacturing facilities.
Operations related to repair and overhaul of aerospace components or aircraft.
Development of strip and paint shops within the aerospace sector.
Training programs for aerospace and aviation industry personnel.
Support services related to aviation operations and business activities.

Examples of admissible projects:

$ 200,000

Development of advanced aviation training programs

$ 160,000

Establishment of aviation support services

$ 180,000

Upgrading avionics in the commercial fleet

$ 350,000

Development of a new strip and paint shop facility

$ 275,000

Expansion of aircraft maintenance and overhaul facilities

$ 210,000

Automation of supply chain management in aerospace

Eligibility

Eligibility for this grant is determined by specific requirements related to the company's profile and activities in Prince Edward Island.

Aerospace firms must be new to Prince Edward Island or existing firms already operating in the province.
The company must be engaged in eligible activities within the "Aerospace and Defence" sector as defined by the province.
The company must have 20 or more employees, or a payroll exceeding $700,000.
The business must establish operations at Slemon Park, Prince Edward Island.

Who is eligible?

Eligible applicants for the Aerospace Tax Holiday in Prince Edward Island include both new and existing aerospace and defence-related companies operating in the province. This initiative is designed to encourage business growth within the aerospace industry by offering tax rebates to qualifying companies. Specifically, the program targets companies engaged in aviation or aerospace/defence-related activities such as original equipment manufacturers, strip and paint shops, repair and overhaul operations, training, and various aviation support businesses. Eligible companies must either be new to Prince Edward Island or already established firms in the province with at least 20 employees or an annual payroll exceeding $700,000.

Who is not eligible

This program does not explicitly mention exclusions, but inferences can be made regarding ineligible companies. Companies outside of the aerospace sector or not engaged in activities defined within the "Aerospace and Defence" sector likely do not meet criteria.

Companies not classified within the "Aerospace and Defence" sector.
Businesses not involved in aviation or aerospace-related activities, such as non-manufacturing or non-service-related sectors within aerospace.

Eligible expenses

This program offers tax relief to aerospace and defence-related companies establishing or expanding their operations in Prince Edward Island. Eligible activities focus on various essential functions within the aerospace and defence sector.

Establishing operations for original equipment manufacturers in Slemon Park.
Setting up or expanding strip and paint shops for aerospace activities.
Developing facilities for aircraft repair and overhaul operations.
Launching training centers to support the aerospace industry workforce.
Creating aviation support services that enhance industry operations in the region.

Eligible geographic areas

This grant focuses on companies located within a designated business area in Prince Edward Island. The eligible geographical location is targeted to support and develop the region's aerospace sector.

Companies that establish operations at Slemon Park, Prince Edward Island.

How to apply

Eligibility Analysis

Review your company’s operations to ensure they fall within the predefined "Aerospace and Defence" sector as outlined by the Province of Prince Edward Island.
Confirm that your company has at least 20 employees or a payroll exceeding $700,000.

Gather Required Documentation

Prepare corporate income tax documents highlighting taxes paid for operations conducted in Prince Edward Island.
Compile property tax documents showing real property tax paid related to ownership or rental of facilities in Prince Edward Island.

Complete Application Form

Obtain the application form from the relevant provincial department administering the Tax Rebate Incentive Program.
Fill in the form with accurate company details and financial information regarding operations in Prince Edward Island.

Submission of Application

Submit the completed application form along with all required supporting documents to the designated provincial office.
Ensure submission is made well in advance of any stated deadlines to avoid any processing delays.

Confirmation and Follow-up

Upon submission, request a confirmation receipt from the provincial office acknowledging receipt of your application.
Maintain communication with the office to check on the status of the application if no confirmation is received within a reasonable timeframe.

Additional information

The aerospace tax holiday provides significant financial incentives for companies in the aerospace and defense sectors operating in Prince Edward Island. It aims to encourage both new and existing businesses to establish or expand their operations within the province, particularly in the Slemon Park business park.

The incentive program was initially for 20 years starting January 1, 1993, and extended for an additional 10 years in December 2012.
Companies must have at least 20 employees or a payroll exceeding $700,000 to be eligible.
Activities in aviation or aerospace/defense businesses are applicable.

Apply to this program

Frequently Asked Questions about the Aerospace Tax Holiday Program

Here are answers to the most common questions about the Aerospace Tax Holiday. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.