Aerospace Tax Holiday
- Open continuously
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.
At a glance
Funding available
- Reduce environmental footprint
- Develop workforce skills
- Varies by project
- Open continuously
Eligible candidates
- Manufacturing
- Prince Edward Island
- All legal structures
- All revenue ranges
- 20 employees minimum
- Rural or Northern Residents
- Startups
Next Steps
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.
Eligibility
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.
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.