Aerospace Tax Holiday
Summerside, PE, Canada
No corporate tax for aerospace and defence employers in PEI
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Innovation PEI
- Government of Prince Edward Island
grant_single|status
grant_card_status|open
grant_single_labels|preview
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.
grant_single_labels|projects
The eligible geographical area for companies applying for this grant is specific to operations conducted within the Province of Prince Edward Island. This is especially relevant to businesses establishing or maintaining operations at Slemon Park.
- Province of Prince Edward Island.
- Slemon Park, Prince Edward Island.
grant_single|admissibleProjectsExample
$275,000
Expansion of aircraft maintenance and overhaul facilities
$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
$210,000
Automation of supply chain management in aerospace
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|who_cannot_apply
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.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is Prince Edward Island, specifically in Slemon Park.
- Prince Edward Island
- Slemon Park
grant_single_labels|register
- Step 1: 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.
- Step 2: 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.
- Step 3: 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.
- Step 4: 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.
- Step 5: 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.
grant_single_labels|otherInfo
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
Aerospace Tax Holiday on Prince Edward Island
The Aerospace Tax Holiday provides significant tax incentives for aerospace and defence-related companies operating in Prince Edward Island, designed to bolster the province's growing aerospace industry. Eligible companies can receive a full rebate on both corporate income tax and real property tax, enhancing the province's attractiveness to aerospace businesses.
Benefits and Structure of the Aerospace Tax Holiday
The Aerospace Tax Holiday is a strategic initiative aimed at nurturing the burgeoning aerospace industry within Prince Edward Island, particularly around the focal point of Slemon Park. Occupying a vast 1,500-acre expanse just outside Summerside, Slemon Park is not only home to the majority of the island’s aerospace workforce but also boasts significant infrastructure tailored to aerospace needs, including large hangars and an operational airport.
The tax holiday is configured to support both new and existing aerospace firms in the province, applicable to companies engaged in activities categorically within the aerospace and defence sectors. Specifically, qualifying entities—spanning from original equipment manufacturers to aviation support services—benefit from a full rebate on corporate income tax levied by the province. This stipulation, applicable annually, allows these businesses to reinvest savings into their operations, driving further innovation and growth.
Moreover, the program offers a complete rebate on all real property tax. This relief applies to both ownership and rental arrangements within the island, reducing the financial burdens associated with establishing and maintaining physical operations. The longevity of this incentive scheme, extending over a 20-year horizon initially and subsequently renewed for a decade in 2012, underscores the province's commitment to securing long-term aerospace investments.
The presence of a robust aerospace tax incentive program symbolizes not only fiscal relief but also a fertile environment for growth and sustainability. By removing significant tax barriers, Prince Edward Island postures itself as a competitive and appealing option for aerospace firms looking to either establish or expand their North American operations. This setting also affords aerospace companies the added advantage of maintaining a workforce amid a supportive community with residential amenities, recreational facilities, and hospitality services available within Slemon Park.
This strategic move aligns with Prince Edward Island's broader economic development goals, channeling targeted incentives into sectors with high employment potential and economic ripple effects. As global aerospace trends steer towards innovative solutions and competitive advantage, the tax holiday serves as a pivotal component of the island’s economic toolkit, ensuring local aerospace firms are both competitive within Canada and on the international stage.
Prospective aerospace companies, whether seeking to tap into regional markets or leverage the skilled workforce localized to Prince Edward Island, will find these incentives fittingly aligned with their strategic and operational objectives. As such, the Aerospace Tax Holiday stands as not merely a financial mechanism but as a cornerstone policy initiative aiding both immediate and future economic fortification of the province.
