Aerospace Tax Holiday

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.

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?

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.

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.