Enriched Investment Tax Credit
Charlottetown, PE, Canada
Rebates for manufacturing and processing exporters in PEI
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Government of Prince Edward Island
- Innovation PEI
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a provincial corporate tax credit of 25% on costs associated with qualified manufacturing and processing equipment. To be eligible, your business should be operating in a strategic sector such as bioscience, aerospace and defence, renewable energy and
grant_single_labels|projects
This grant is limited to companies that are located within Prince Edward Island, Canada. The eligible area is specifically defined to target local economic development and export-oriented activities within the province.
- Prince Edward Island, Canada.
grant_single|admissibleProjectsExample
$250,000
Charlottetown
Purchasing new machinery for bioscience research at BioTech Innovations
$212,500
Halifax
Upgrading processing methods at Healthy Harvest Co-op
$300,000
Calgary
Implementing advanced aerospace manufacturing techniques at AeroTech Solutions
$237,500
Edmonton
Modernizing manufacturing facilities at Northern Fabricators Ltd
$225,000
Vancouver
Acquisition of high-productivity equipment for TechnoWave Inc
$250,000
Toronto
Installing renewable energy technology at Green Future Co-op
grant_single_labels|admissibility
Eligibility for this grant is determined by location, business operation specifics, and financial standing according to the outlined criteria.
- The business must be located in Prince Edward Island and registered to do business and actively operating there.
- The business must manufacture, process, or develop goods or services primarily for export.
- The business must operate within these strategic sectors: bioscience, aerospace and defence, advanced manufacturing and processing, renewable energy and clean technology, information and communications technology, creative and cultural industries, or be a first-of-its-kind exportable goods or services in other sectors.
- The business must not have a defaulted outstanding debt obligation on file in the Province’s Central Default Registry.
- New project submissions from an applicant in default on any reporting, project completion or financial obligation to Innovation PEI must resolve these issues to be eligible.
grant_eligibility_criteria|who_can_apply
To be eligible for the Enriched Investment Tax Credit, a business must meet the following criteria:1. Location: The business must be located in Prince Edward Island (PEI).2. Registration and Operation: It must be registered to do business and actively operating in PEI.3. Type of Business: The business should be involved in manufacturing, processing, or developing goods or services primarily for export.4. Strategic Sectors: The business must operate within one of the following strategic sectors: - Bioscience - Aerospace and defence - Advanced manufacturing and processing - Renewable energy and clean technology - Information and communications technology - Creative and cultural industries - Other sectors may be considered if the business offers "first-of-its-kind" exportable goods or services.5. Debt Obligations: The business should not have any defaulted outstanding debt obligations on file in the Province’s Central Default Registry.6. Past Compliance: New project submissions will not be reviewed if the applicant is in default on any reporting, project completion, or financial obligation to Innovation PEI without resolving the default first.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain companies and industries due to their main activity or financial status. The restrictions are in place to ensure alignment with the grant's objectives and to maintain financial integrity.
- Companies involved in activities such as construction, farming, fishing, mining, logging, and petroleum and natural gas operations.
- Businesses that have a defaulted outstanding debt obligation on file in the Province's Central Default Registry.
- Applicants in default on any reporting, project completion, or financial obligation to Innovation PEI.
grant_eligibility_criteria|eligible_expenses
The Enriched Investment Tax Credit supports activities focused on modernization and productivity improvements for manufacturing and processing companies in Prince Edward Island. Eligible initiatives emphasize investment in advanced machinery and equipment aimed at enhancing export capabilities.
- Investments in machinery or equipment used for manufacturing and processing goods primarily for export.
- Acquisition of new, unused qualified property in Prince Edward Island dedicated to manufacturing or processing.
- Applications that demonstrate the use of advanced manufacturing and processing methods to exceed labour productivity standards.
grant_eligibility_criteria|zone
The grant covers expenses specifically related to qualified property used for manufacturing or processing.
- Purchase of machinery or equipment that is qualified under the definition in subsection 127(9) of the Federal Act.
grant_single_labels|criteria
The evaluation and selection of projects for the Enriched Investment Tax Credit are based on specific criteria aimed at ensuring economic benefits to the province and alignment with strategic priorities.
- Potential for long-term viability, including qualifications and track record of senior management.
- Cost benefit to the Province of Prince Edward Island.
- Employment creation.
- Export sales and import substitution.
- Environmental impact.
- Availability of program funds.
- Level of assistance from other government programs offered or available.
grant_single_labels|register
Here are the steps to submit an application for the Enriched Investment Tax Credit:
- Step 1: Preliminary Consultation
- Contact an Innovation PEI Business Development Officer for guidance.
- Discuss the suitability of your project for the Enriched Investment Tax Credit.
- Step 2: Application Preparation
- Gather detailed business information including the history and description of the business.
- Prepare financial statements for the previous two years (for existing businesses) or a business plan (for new businesses).
- Describe the proposed project or activity and its economic benefits to Prince Edward Island.
- Provide detailed cost estimates supported by written quotations and identify the source of funds.
- Outline the business's current market position and projected market developments.
- Compile a list of all shareholders and key management personnel.
- Step 3: Submit Application
- Ensure application submission before any financial or legal commitment to the project.
- Submit the full application package to Innovation PEI online.
- Ensure all required information and documents are included for the application to be considered complete.
- Step 4: Application Review and Approval
- Applications are reviewed on a first-come, first-serve basis subject to budget availability.
- Upon approval, receive a Letter of Offer outlining the terms and conditions of the tax credit.
- Step 5: Implementation and Rebate Claim
- Complete the purchase and implementation of the qualified property.
- Submit a cost summary to Innovation PEI to verify the amount invested in qualifying property.
- File the company’s annual income tax return and notice of assessment to receive the rebate cheque.
grant_single_labels|otherInfo
Applicants must comply with the terms and conditions of approval, and crucial timelines must be adhered to for eligibility.
- A corporation must apply for the Enriched Investment Tax Credit before making the investment in qualified property.
- Information collected is subject to the Prince Edward Island Freedom of Information and Protection of Privacy Act.
- Participants must consent to a public announcement relating to the investment and related accomplishments.
grant_single_labels|contact
innovation@gov.pe.ca
902-368-6300
Apply to this program
Boosting Prince Edward Island's Export Capabilities through Tax Credits
The Enriched Investment Tax Credit is designed to enhance the competitive edge of manufacturing and processing companies in Prince Edward Island by providing substantial tax incentives for capital investments focused on productivity and export. This initiative aims to modernize equipment and support companies in key sectors, ensuring significant economic benefits for both the businesses involved and the province as a whole.
In-Depth Insight into the Enriched Investment Tax Credit Program
The Enriched Investment Tax Credit is a strategic economic measure introduced to strengthen Prince Edward Island’s manufacturing and processing sectors. This program extends a 25 percent corporate tax credit to eligible businesses investing in new machinery or equipment intended to boost manufacturing and processing capabilities, primarily for export purposes. By encouraging the acquisition of high-productivity machinery, the tax credit not only aims to augment the manufacturing capacity but also seeks to enhance the competitive stance of local businesses on a global scale. This aligns with Prince Edward Island’s broader economic aspirations of increasing export activities and fostering economic growth within the province.
Eligibility for this tax credit is designed to focus on strategic sectors including bioscience, aerospace, and renewable energy, among others, which are crucial for Prince Edward Island’s economic advancement. The rationale behind such targeted eligibility is to ensure that investments generate substantial and sustainable economic benefits for the province while promoting innovation and competitiveness. By supporting businesses that operate within these sectors, the tax credit plays a vital role in fostering a progressive business environment and encouraging the development of new technologies and services that can be offered internationally.
Participating companies must demonstrate significant potential, including effective management practices and a sound business model that points towards long-term sustainability. This ensures that the tax credit not only supports immediate financial needs but also facilitates enduring economic contributions. Furthermore, the economic advantages anticipated include job creation, increased export opportunities, and the establishment of Prince Edward Island as a desirable destination for innovative and productive business operations.
Moreover, the program has a crucial stipulation that demands compliance with specific productivity standards. This is aimed at ensuring that the new investments genuinely contribute to increased efficiency and better operational outcomes. Companies must be able to substantiate their investments with comprehensive proposals that highlight the prospective impacts on productivity and export capabilities, thus linking their business activities directly with provincial economic goals.
Performance monitoring is another significant element of the Enriched Investment Tax Credit. Approved companies are required to accept and adhere to the terms outlined in a formal letter of offer, which serves as a contractual agreement with Innovation PEI. This acceptance implies a commitment to achieving predefined outcomes and provides a framework for assessing the success of the tax credit in fostering economic development. Regular monitoring ensures that the tax credit continues to support businesses effectively while gleaning insights that can guide future policy enhancements.
The program also offers some flexibility; for instance, unused tax credits can be applied to corporate income taxes for up to seven years following the acquisition of qualified property. This ability to carry forward tax credits offers a financial cushion, allowing companies to benefit from the tax incentive as their investments mature and begin to yield returns. This extended timeline underscores the program's commitment to sustained economic impact rather than short-term gains.
In conclusion, the Enriched Investment Tax Credit acts as a catalyst for advancing Prince Edward Island's manufacturing and processing sectors by encouraging strategic capital investments. It provides a robust framework for supporting cutting-edge manufacturing techniques and elevating the export potential of local industries. By aligning tax incentives with clearly defined economic objectives, the program helps ensure that investments contribute positively to the island's prosperity, driving growth, innovation, and job creation while maintaining a sustainable economic environment.
