Economic Diversification and Growth Enterprises
NL, Canada
Incentives to grow new business in Newfoundland and Labrador
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|minCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateJuly 09, 2024
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Department of Industry, Energy and Technology (NL)
- Government of Newfoundland and Labrador
grant_single|status
grant_card_status|open
grant_single_labels|preview
Tax rebates of 100% on provincial income tax, 50% on federal corporate income tax, and 100% on municipal property or business tax for 10 or 15 years.
grant_single_labels|projects
There are no project or activities eligible mentioned for this grant.
grant_single|admissibleProjectsExample
$275,000
Calgary
Implementing an energy-efficient lighting system in public spaces
$200,000
Vancouver
Launching a community kitchen initiative to provide healthy meals
$275,000
Montreal
Developing a sustainable waste management program for urban areas
$275,000
Halifax
Establishing a mental health support center for youth
$250,000
Toronto
Developing an innovative financial management platform for small businesses
$250,000
Ottawa
Creating an online educational platform for underprivileged students
grant_single_labels|admissibility
Eligibility criteria for the Economic Diversification and Growth Enterprises (EDGE) program are focused on new capital investment, job creation, and the overall economic benefit to the province.
- Potential for new capital investment of at least $300,000 or incremental sales of at least $500,000
- Potential to create and maintain at least 10 new permanent jobs in the province
- Activity would not take place in the province without EDGE incentives
- Substantial net economic benefit to the province
- No direct competitive advantage over existing businesses in the province
grant_eligibility_criteria|who_can_apply
The Economic Diversification and Growth Enterprises (EDGE) program is available to national and international companies establishing a new enterprise in the province, local companies that want to expand, and local entrepreneurs who are interested in new business start-ups. To be eligible, the company must meet specific criteria demonstrating potential for significant capital investment, job creation, and a substantial net economic benefit to the province.
- Companies with potential for new capital investment of at least $300,000, or incremental sales of at least $500,000.
- Companies with potential to create and maintain at least 10 new permanent jobs in the province.
- Companies that would not take place in the province in the absence of the EDGE incentives, in preference to another location or at the proposed time.
- Companies that provide a substantial net economic benefit to the province.
- Companies that would not result in a direct competitive advantage over other businesses already established in the province, if provided EDGE status.
grant_eligibility_criteria|who_cannot_apply
There are specific types of companies that are not eligible for this grant.
- Companies outside of Canada
- Non-profit organizations
- Government organizations
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include:
- Salaries and wages for project personnel
- Direct costs for materials and supplies
- Contractual services
grant_eligibility_criteria|zone
The eligibility for the Economic Diversification and Growth Enterprises (EDGE) grant is based on geographic zones determined by the Economic Diversification and Growth Enterprises Act.
- 100 per cent tax rebate for 10 years on the Northeast Avalon
- 100 per cent tax rebate for 15 years outside the Northeast Avalon
grant_single_labels|criteria
The Economic Diversification and Growth Enterprises (EDGE) program has specific eligibility criteria for companies to be considered for EDGE status. These criteria include requirements for new or expanding business activities, potential for job creation, and overall economic benefit to the province.
- The business activity must involve new or expanding business activity.
- Potential for new capital investment of at least $300,000, or incremental sales of at least $500,000.
- Potential to create and maintain at least 10 new permanent jobs in the province.
- The business activity would not take place in the province without the EDGE incentives.
- The business activity must have a substantial net economic benefit to the province.
- The business activity must not give the company a direct competitive advantage over other businesses already established in the province.
grant_single_labels|register
- Step 1: Prepare application – Ensure your business meets the eligibility criteria, including potential for new capital investment of at least $300,000 or incremental sales of at least $500,000, creation of 10 new permanent jobs, etc.
- Step 2: Submit application – Submit the application to the Economic Diversification and Growth Enterprises Board with all required documentation.
- Step 3: Evaluation by the Board – The Board evaluates the application. They may request additional information to conduct a proper evaluation.
- Step 4: Board recommendation – Based on their evaluation, the Board makes a recommendation to the Lieutenant-Governor in Council through the Minister of IET.
- Step 5: Approval by Lieutenant-Governor in Council – Obtain approval for EDGE status from the Lieutenant-Governor in Council.
- Step 6: Enter into contract – If approved, enter into a contract with the Provincial Government and maintain the eligibility criteria to receive the EDGE benefits.
grant_single_labels|otherInfo
The Economic Diversification and Growth Enterprises (EDGE) program offers various benefits to companies, including tax rebates and access to Crown land. The program aims to incentivize new business investments and job creation in the province.
- 100 per cent rebate/remission on provincial corporate income tax and the provincial health and post-secondary education (payroll) tax
- 50 per cent rebate on federal corporate income tax
- Five-year even phase-out period of partial rebates on provincial and federal taxes
- 100 per cent rebate on municipal property and/or municipal business taxes
- Access to un-serviced Crown land for $1
Apply to this program
Economic Diversification and Growth Enterprises (EDGE) Program Grant Summary
The Economic Diversification and Growth Enterprises (EDGE) Program provides significant financial incentives, including tax rebates and access to Crown land, to encourage new business investment, expansion, and job creation in Newfoundland and Labrador. The program is aimed at fostering economic diversification and stimulating private sector job growth by offering national and international companies various economic benefits.
Understanding the Economic Diversification and Growth Enterprises (EDGE) Program
The Economic Diversification and Growth Enterprises (EDGE) Program, established under the Economic Diversification and Growth Enterprises Act on December 16, 1994, is a pivotal economic development and marketing tool designed to attract new business investments in Newfoundland and Labrador. The primary goal of the EDGE program is to diversify the province's economy while stimulating private sector job creation through a comprehensive package of tax-related and economic incentives.
Available to national and international companies aiming to establish new enterprises, as well as local companies looking to expand or entrepreneurs planning new business startups, the EDGE program is a versatile mechanism designed to cater to various business needs. To qualify for EDGE status, businesses must meet specific eligibility criteria that ensure the initiatives are beneficial to the broader economic landscape of Newfoundland and Labrador.
Eligibility Criteria for EDGE Status
To be considered for EDGE status, companies must demonstrate they are engaging in a new or expanding business activity that fulfills these essential conditions:
- Capital Investment and Sales: The business must show potential for new capital investment of at least $300,000 or incremental sales of at least $500,000.
- Job Creation: The venture must have the potential to create and sustain a minimum of 10 new permanent jobs in the province.
- Incentive Dependency: The project must indicate that it would not proceed in the province in the absence of EDGE incentives, potentially favoring another location or a different project timeline.
- Economic Benefit: The business must offer a substantial net economic benefit to Newfoundland and Labrador.
- Competitive Fairness: The business should not gain a direct competitive advantage over other businesses already established in the province as a result of receiving EDGE status.
Companies granted designation as an EDGE Corporation must enter into a contract with the Provincial Government and maintain these eligibility requirements to continue receiving EDGE benefits. The terms set out in the contract ensure that the ventures sustain economic growth and job creation initiatives as stipulated by the program guidelines.
Benefits of the EDGE Program
EDGE designated companies enjoy an array of benefits designed to reduce operational costs and enhance business attractiveness. These benefits include:
- Provincial Corporate Income Tax and Payroll Tax Rebates: Companies receive a 100% rebate or remission on provincial corporate income tax and the provincial health and post-secondary education (payroll) tax. This tax "holiday" extends for 10 years on the Northeast Avalon and 15 years outside the Northeast Avalon. This is followed by a five-year phase-out period of partial rebates.
- Federal Corporate Income Tax Rebates: A 50% rebate, paid by the province, on federal corporate income tax for the aforementioned durations.
- Municipal Property and/or Business Taxes Rebates: Companies receive a 100% rebate on these taxes for 10 or 15 years, depending on their location, followed by a five-year phase-out period. This benefit applies if the individual municipalities elect to participate in the EDGE program.
- Access to Crown Land: Businesses can access un-serviced Crown land for $1 if such land is essential for implementing the company's business plan.
Administration and Oversight
Applications for the EDGE program are evaluated by an independent Board of Directors appointed by the Lieutenant-Governor in Council. The board's primary responsibilities include reviewing applications, ensuring adherence to eligibility criteria, and making recommendations for EDGE status to the Lieutenant-Governor in Council through the Minister of Industry, Energy, and Technology (IET).
The board operates without its own staff, relying on administrative support from the Department of Industry, Energy, and Technology (IET). This efficient organizational structure ensures that resources are directed towards evaluating and supporting business applications rather than maintaining separate administrative functions.
Performance Reporting and Accountability
The EDGE program is subject to stringent performance reporting and accountability measures to ensure it meets its stated objectives. For each fiscal year of its activity plan, the EDGE board reports on its performance based on set objectives and indicators. The key objective for the fiscal year 2021-22 was to evaluate and make recommendations on all EDGE program applications submitted within the fiscal year and ready for review. This process ensures transparency and accountability in the administration of the program.
In the fiscal year 2021-22, the EDGE board reviewed and evaluated one application. However, no recommendation for EDGE status was made to the Lieutenant-Governor in Council during this period as further analysis was deemed necessary.
Conclusion
The Economic Diversification and Growth Enterprises (EDGE) Program is an essential initiative for fostering economic growth and diversification in Newfoundland and Labrador. By offering a comprehensive suite of financial incentives, including tax rebates and access to Crown land, the program attracts new investments, supports business expansion, and stimulates job creation. Companies interested in this program must meet specific eligibility criteria to ensure their projects provide substantial economic benefits to the province without unfairly disadvantaging existing businesses.
The oversight and evaluation responsibilities of the independent board ensure that only those ventures most conducive to provincial economic development gain EDGE status. The program's structured benefits and rigorous application process underscore Newfoundland and Labrador's commitment to fostering a competitive, varied, and flourishing economy.
