Aerospace Tax Holiday
Highlights
This program is a fantastic opportunity for your business. If you operate in the aerospace or defense sectors in Prince Edward Island, you can receive a full refund on all provincial corporate income tax paid. This means more money stays in your business, helping you grow and innovate.
You can use these tax savings for various activities. Whether you're expanding aircraft maintenance facilities, developing advanced training programs, or upgrading avionics, this program supports a wide range of aerospace-related projects. The goal is to help you invest in your operations without the burden of provincial corporate taxes.
There are no conditions or payback periods. As long as your business has 20 or more employees or a payroll over $700,000, you qualify. This tax holiday can significantly reduce your expenses, allowing you to reinvest in your business and contribute to the local economy.
Financing Details
This program offers a Tax Credit in the form of a full rebate on all provincial corporate income tax paid by eligible aerospace and defense companies in Prince Edward Island. Additionally, it includes a rebate on all real property tax related to ownership or rental of facilities within the province.
Repayment Terms and Interest Rates:
- There are no repayment terms or interest rates involved as this is a tax credit, not a loan.
Eligible Expenses:
- The tax credit covers the total amount of provincial corporate income tax and real property tax paid by the company. This incentive is designed to support business operations and expansion within the aerospace and defense sectors.
Restrictions on Use of Funds:
- The funds from this tax credit cannot be used towards personal expenses or non-business related expenditures. They are strictly meant to offset the costs associated with corporate and property taxes.
Fees:
- There are no fees associated with applying for or receiving this tax credit.
Qualifications
- Business must be located in Prince Edward Island, specifically in Slemon Park.
- Business must be categorized in the "Aerospace and Defence" sector as defined by the Province of Prince Edward Island.
- Business must be engaged in eligible aerospace and defence-related activities.
- Business must have 20 or more employees or a payroll exceeding $700,000.
- Both new aerospace firms to Prince Edward Island and existing aerospace firms operating in the province are eligible.
- Eligible types of businesses include:
- Original equipment manufacturers
- Strip and paint shops
- Repair and overhaul operations
- Training facilities
- Various aviation support businesses
Description
This program is a fantastic opportunity for your business. If you operate in the aerospace or defense sectors in Prince Edward Island, you can receive a full refund on all provincial corporate income tax paid. This means more money stays in your business, helping you grow and innovate.
You can use these tax savings for various activities. Whether you're expanding aircraft maintenance facilities, developing advanced training programs, or upgrading avionics, this program supports a wide range of aerospace-related projects. The goal is to help you invest in your operations without the burden of provincial corporate taxes.
There are no conditions or payback periods. As long as your business has 20 or more employees or a payroll over $700,000, you qualify. This tax holiday can significantly reduce your expenses, allowing you to reinvest in your business and contribute to the local economy.
Program Steps
Gather Required Documentation
- Prepare documentation that proves your company’s eligibility, including:
- Employee headcount records
- Payroll records
- Business registration details
- Compile any additional documents required by the Province of Prince Edward Island.
- Prepare documentation that proves your company’s eligibility, including:
Fill Out the Application Form
- Obtain the application form from the Province of Prince Edward Island for the tax rebate incentive program.
Submit Your Application
- Complete the application form and attach the required documentation.
- Submit the application to the appropriate provincial department.
Await Approval
- Your application will be reviewed by provincial authorities.
- Be prepared to respond to any requests for additional information or clarification.
Receive Your Tax Rebate
- If approved, you will receive a full rebate annually on all corporate income tax paid to the province.
- You will also receive a full rebate annually for all real property tax related to your facilities in Prince Edward Island.
