Enriched Investment Tax Credit

Who is eligible?

Who is not eligible

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.

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.

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.

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.

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.