Innovation and Development Labour Rebate Program
Highlights
The PEI Labour Rebate (PLR) is designed to help your business grow by offering a refundable labour rebate on new job creation. This program is perfect for businesses like yours that are expanding and developing new products or services for export. By participating, you can receive a rebate of up to 25% of eligible salaries and wages for new full-time positions, making it easier to manage labor costs as you scale.
Why should you apply?
- Financial Support: Get up to 25% back on eligible salaries and wages for new full-time positions.
- Growth Opportunity: Use the rebate to expand your workforce and develop new products or services.
- Economic Benefit: Contribute to the economic growth of Prince Edward Island while growing your business.
What’s in it for you?
- Cost Savings: Reduce your labor expenses significantly, freeing up funds for other critical areas of your business.
- Easy Qualification: If your business is actively operating in PEI and meets the criteria, you can qualify for this rebate.
- Long-term Viability: The program supports projects with potential for long-term success, ensuring your business can thrive.
Applying for the PEI Labour Rebate is straightforward, and the benefits can provide a substantial boost to your business’s growth and sustainability.
Financing Details
Type of Financing: Wage Subsidy
Repayment Terms and Interest Rates:
- No repayment terms or interest rates apply, as this is a refundable rebate.
Eligible Expenses:
- Salaries and wages for incremental, full-time positions (minimum 1,850 hours annually).
- Positions must have a gross wage of at least $35,000 per year.
- Only salaries and wages paid to PEI residents are eligible.
Ineligible Uses:
- Full-time positions already receiving labour cost funding from another government source.
- Salaries and wages for individuals maintaining ownership in the business.
Fees:
- No fees are associated with this program.
Qualifications
- Must be located in Prince Edward Island.
- Must be registered to conduct business and actively operating in Prince Edward Island.
- Must manufacture, process, or develop goods or services primarily for export.
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
- First-of-its-kind exportable goods or services in other sectors may be considered.
Disqualifications:
- Businesses with 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.
- Full-time positions receiving labour cost funding from another government source.
- Individuals maintaining ownership in the business.
Description
This program offers your business a refundable labour rebate for creating new jobs. You can get back up to 25% of eligible salaries and wages for new full-time positions. Each position must pay at least $35,000 per year and be filled by a PEI resident.
The rebate applies to jobs linked to developing, expanding, or commercializing new products, processes, or services sold outside PEI. This can help you grow your business and reach new markets.
The rebate is available for up to one year of eligible labour expenses. If your project lasts longer, the rebate can be spread out over several years, up to a maximum of ten years. This program can significantly reduce your labour costs, making it easier to invest in your business's future.
Program Steps
Consult with an Innovation PEI Business Development Officer: Reach out to an officer for guidance on the suitability of your project and the application process. They can provide valuable insights and recommendations.
Prepare Documentation: Gather and prepare the necessary documents for your application. You will need:
- A history and description of your business.
- Financial Statements for the previous two years (for existing businesses).
- A completed business plan (for new businesses).
- A description of the proposed project or activity.
- Detailed economic benefits to the organization and Prince Edward Island.
- Estimated costs of the proposed project or activity, supported by written quotations.
- Source of funds for the project (e.g., lending institutions, banks, government loans/grants).
- Explanation of your business's current market position and projected market.
- A list of all shareholders and key management personnel.
Complete the Application: Fill out the application form with all required information. Ensure that all sections are thoroughly completed and accurate.
Submit the Application: Submit your completed application to Innovation PEI before making any financial or legal commitments on the project. Ensure all required documents are included.
Review and Acceptance: Innovation PEI will review your application. If approved, you will receive a letter of offer outlining the terms and conditions. Accept the letter to formalize the contract between your business and the government.
Monitor Performance: Once approved, adhere to the terms and conditions stated in the letter of offer. Innovation PEI may require performance monitoring to ensure compliance and successful project completion.