Innovation and Development Labour Rebate Program
PE, Canada
Tax credit for development and commercialization in Prince Edward Island (PEI)
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- grant_single|allIndustries
grant_single|grantors
- Government of Prince Edward Island
- Innovation PEI
grant_single|status
grant_card_status|open
grant_single_labels|preview
25% tax credit for eligible labour costs on projects to develop and commercialize new products, processes and services in PEI.
grant_single_labels|projects
Eligible projects and activities for this grant include short-term initiatives linked to the development, expansion, and commercialization of new products, processes, and services primarily for export beyond PEI. These projects must involve incremental job creation within specific strategic sectors.
- Development of new exportable products
- Expansion of current production facilities
- Commercialization of innovative processes
- Introduction of new services primarily for foreign markets
- Job creation linked to the above activities
grant_single|admissibleProjectsExample
$50,000
Stratford
Launching an innovative software solution from a new office
$87,500
Kensington
Commercializing new organic farming techniques from Kensington targeting the global market
$37,500
Charlottetown
Developing a new line of sustainable packaging for export from Charlottetown
$62,500
Charlottetown
Introducing a new marine transport service from Charlottetown for international clients
$60,000
Cornwall
Developing a new AI-driven customer service platform from Cornwall for global businesses
$75,000
Summerside
Expanding solar panel production facilities for international markets
grant_single_labels|admissibility
The PEI Labour Rebate supports Island businesses in Prince Edward Island that create new jobs linked to development, expansion, and commercialization of export products, processes, and services. Eligible businesses must operate in specific strategic sectors and meet other criteria such as having no defaulted debt obligations.
- Business must be located in Prince Edward Island and registered to conduct business there.
- Manufactures, processes, or develops goods or services primarily for export.
- Operates within one of 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 first-of-its-kind exportable goods or services in other sectors.
- Not having a defaulted outstanding debt obligation on file in the Province’s Central Default Registry.
- New project submissions should not be in default on any reporting, project completion, or financial obligation to Innovation PEI.
grant_eligibility_criteria|who_can_apply
The PEI Labour Rebate is available to businesses located in Prince Edward Island that are registered and actively operating. These businesses should primarily manufacture, process, or develop goods or services for export, and operate within specific strategic sectors or offer unique exportable goods or services.
- Bioscience
- Aerospace and defence
- Advanced manufacturing and processing
- Renewable energy and clean technology
- Information and communications technology
- Creative and cultural industries
- First-of-its-kind exportable goods or services (other sectors may be considered)
grant_eligibility_criteria|eligible_expenses
Projects are expected to be short term; the PLR is applied to a maximum of one year of eligible labour expenses. The project may exceed one year, but only one year’s expenditures will be used to calculate the PLR.
- Salaries and wages paid to PEI residents for incremental, full-time positions (1850 hours)
- Each position must have a gross wage of at least $35,000 per annum
- Businesses may be eligible for partial payments over several years (maximum ten years)
grant_eligibility_criteria|zone
The PEI Labour Rebate is available exclusively to businesses located in Prince Edward Island, Canada. Eligible businesses must be registered and actively operating within PEI.
- Business must be located in Prince Edward Island
- Business must be registered to conduct business in Prince Edward Island
- Business must be actively operating in Prince Edward Island
grant_single_labels|criteria
Yes, there are evaluation and selection criteria for this grant. Applications are reviewed on a first-come, first-serve basis and are assessed using specific evaluation considerations.
- Potential for long-term viability
- Degree of innovation
- Qualifications and track records of managers
- Market potential
- Availability of program funds
- Employment creation
- Level of assistance from other government supports offered or available
- Economic benefit to the province of Prince Edward Island
grant_single_labels|register
- Step 1: Consult with an Innovation PEI Business Development Officer
- Purpose: Obtain guidance on the suitability of the project and the application process.
- Implications: The officer may recommend alternative funding programs if the project is not a good candidate for the PEI Labour Rebate.
- Step 2: Prepare Business Information and Supporting Documents
- Purpose: Gather detailed business history, financial statements, business plan, and descriptions of the proposed project.
- Implications: The gathered documents should include economic benefits, cost estimates with quotations, and funding sources for the project.
- Step 3: Outline the History and Description of the Business
- Purpose: Provide a detailed history and operation description of the business.
- Implications: Existing businesses need to submit financial statements for the previous two years, while new businesses require a completed business plan.
- Step 4: Describe the Proposed Project
- Purpose: Present a detailed description of the project or activity related to the products and/or services delivered by the business.
- Implications: Include detailed information on estimated costs, economic benefits to the organization and PEI, and market position and projected market share.
- Step 5: Submit the Application
- Purpose: Complete the application form and attach all required supporting documents.
- Implications: Ensure the application is submitted before making any financial or legal commitments for the project to qualify for consideration.
- Step 6: Review and Acceptance
- Purpose: Await the review of your application by Innovation PEI.
- Implications: If approved, accept the letter of offer which will then constitute a contract between the government and the applicant.
grant_single_labels|otherInfo
The PEI Labour Rebate program has specific application requirements and performance monitoring guidelines.
- An application must be submitted before any financial or legal commitment is made on the project.
- Innovation PEI encourages potential applicants to consult with an Innovation PEI Business Development Officer for guidance on the suitability of the project and the application process.
- If the application is approved, a letter of offer stating the terms and conditions of approval will be forwarded to the applicant or corporate contact, which will constitute a contract upon acceptance.
- Innovation PEI reserves the right to deny a grant application or request for payment if it suspects or detects fraudulent intent.
Apply to this program
PEI Labour Rebate: Stimulating Job Creation in Prince Edward Island
Overview of the PEI Labour Rebate Program
The Prince Edward Island (PEI) Labour Rebate (PLR) program is an initiative designed to spur economic growth by offering refundable labour rebates on incremental job creation. This targeted funding aims to support businesses in developing, expanding, and commercializing new products, processes, and services that reach markets outside of PEI.
Eligibility Criteria for PEI Labour Rebate
For a company to qualify for the PEI Labour Rebate, it must meet a series of critical requirements. Firstly, the business must be physically located in Prince Edward Island and be actively operating while being registered to conduct business within the province. Additionally, the business must be involved in the manufacturing, processing, or development of goods or services primarily intended for export. The strategic sectors that the program aims to foster include:
- Bioscience
- Aerospace and Defence
- Advanced Manufacturing and Processing
- Renewable Energy and Clean Technology
- Information and Communications Technology
- Creative and Cultural Industries
Under special circumstances, businesses offering first-of-its-kind exportable goods or services in other sectors may also be considered. It’s vital to note that businesses with defaulted outstanding debt obligations in the Province's Central Default Registry or those in default on any innovation project with PEI will not be eligible for the rebate until these issues are resolved.
Supported Activities and Costs
Projects intended for the PLR program are expected to be short-term. The rebate applies to a maximum of one year of eligible labour expenses, even if the duration of the project exceeds this period. Innovation PEI, however, offers flexibility through prorated rebates that can be dispersed over several years, with a maximum limit of ten years. The rebate can cover up to 25% of eligible salaries and wages, which are defined as the payments made to PEI residents for incremental, full-time positions (1,850 hours annually) with a minimum gross wage of $35,000 per annum. Notably, labour costs for full-time positions already receiving funding from another government source will not be eligible for the PLR. Additionally, any individuals who own part of the business are also excluded from receiving this rebate for their roles.
Application Evaluation Criteria
Once a business submits a complete application, it will be reviewed on a first-come, first-serve basis. A complete application is defined as one that includes all the required information and supporting documents submitted to Innovation PEI. Although meeting the minimum criteria is essential, it does not automatically guarantee funding. Evaluation also includes considerations such as:
- Long-term viability of the project
- Degree of innovation
- Qualifications and track records of managerial staff
- Market potential
- Availability of program funds
- Employment creation capacity
- Level of existing government support
The overarching criterion is the economic benefit that the project will provide to Prince Edward Island. Innovation PEI retains the right to deny applications or request for payment if fraudulent intent is suspected or detected.
Performance Monitoring and Agreement Terms
Upon approval of the application, a letter of offer detailing the terms and conditions will be sent to the applicant. Acceptance of this letter results in a binding contract between the government and the applicant. Continuous compliance with the outlined terms is necessary to maintain eligibility for the PLR.
Steps to Apply for the PEI Labour Rebate
Prospective applicants are encouraged to consult with an Innovation PEI Business Development Officer for guidance on the eligibility and suitability of their project. This preliminary consultation aims to determine if the PLR is the appropriate program or if other funding opportunities might be more fitting. Applications must be submitted prior to any financial or legal commitments being made on the project. To complete the application, businesses need to provide detailed information and several supporting documents, including but not limited to:
- An outline and description of the business history
- Detailed financial statements for the previous two years (for existing businesses) or a comprehensive business plan (for new businesses)
- A description of the proposed project and its relation to the business’s products and services
- Detailed economic benefits for both the business and Prince Edward Island
- Costs estimates supported by written quotations
- Sources of funds for the project, such as lending institutions, banks, and other government loans/grants
- An explanation of the business's current and projected market positions, including expected increases in market share
- A list of shareholders and key management personnel
Conclusion
The PEI Labour Rebate program represents a significant opportunity for businesses aiming to grow their operations and market reach beyond Prince Edward Island. By offering substantial financial support for incremental job creation, the program not only facilitates business growth but also contributes to the broader economic development of the province. Companies engaged in innovative and export-oriented activities are strongly encouraged to explore this funding opportunity, ensuring they meet all eligibility requirements and prepare comprehensive applications to maximize their chances of receiving support.
