PEI Labour Rebate

The PEI Labour Rebate (PLR) supports the growth of Island businesses through a refundable labour rebate on incremental job creation. Employment growth must be linked to the development, expansion and/or commercialization of new products, processes, and services that will be sold primarily beyond the borders of PEI.

Grant Deadline

Deadline not available

Funding Amount

Deadline not available

Type of Grant

Tax Credit

Sectors

Aerospace, Arts & Culture, Biotechnology, Clean Energy, Clean Tech, Environmental Sustainability, Food Processing, Industrial, Technology, Telecommunications

Demographics

Incorporation

For Profit

Perks

Region Restriction

This grant is restricted to whole of Canada

Keywords

Age Restriction

This grant is age restricted from 18 to 100

Eligibility and Requirements

Who is eligible for PEI Labour Rebate? 

To be an eligible applicant, a business must be located in Prince Edward Island and:

• be registered to conduct business and actively operating in Prince Edward Island; 
• 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
• first-of-its-kind exportable goods or services in other sectors may be considered.

A business that has a defaulted outstanding debt obligation on file in the Province’s Central Default Registry is not eligible for Innovation PEI assistance

What activities and costs are supported?

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. Innovation PEI may agree to pro-rate the eligible rebate, with partial payments over several years (maximum ten years).

What level of assistance is available?

The PLR provides a rebate up to 25 per cent of eligible salaries and wages. Eligible salaries and wages are paid to PEI residents for incremental, full time positions (1850 hours), and each position must have a gross wage of at least $35,000 per annum. 

A full-time position receiving labour cost funding from another government source is ineligible to receive funding for the same from the PEI Labour Rebate.

Any individuals maintaining ownership in the business are not eligible.

What criteria are used to evaluate applications? 

Eligible businesses that submit complete applications will be reviewed on a first-come, first-serve basis. An application is considered to be complete and received when all required information has been submitted to Innovation PEI.

Not all projects meeting the minimum criteria will receive funding. Applications will also be evaluated using the following considerations:

• potential for long-term viability;
• degree of innovation;
• qualifications and track records of managers;
• market potential;
• availability of program funds;
• employment creation; and
• level of assistance from other government supports offered or available.

The project must provide economic benefit to the province of Prince Edward Island. 

Performance Monitoring

If the application is approved, Innovation PEI will require acceptance of a letter of offer stating the terms and conditions of approval will be forwarded to the applicant or corporate contact. When accepted, the letter of offer shall constitute a contract between government and the applicant(s). 

How do I apply?

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 project is not a good candidate for PEI Labour Rebate, the Business Development Officer may recommend alternative funding programs that may be available. 

An application must be submitted before any financial or legal commitment is made on the project.

What do I need to apply?

To complete the application, be prepared to provide detailed business information and supporting documents including:

• outline the history and provide a description of the business; 
• existing businesses will need detailed Financial Statements for the previous two years; 
• new businesses will need a completed business plan; 
• description of the proposed project or activity in relation to the products and/or services delivered by the business; 
• detailed description of the economic benefits to the organization and to Prince Edward Island; 
• detailed information on the estimated costs of the proposed project or activity (cost estimates should be supported by written quotations);
• source of funds for the project (for example, lending institutions, banks, government loans and/or grants); 
• explanation of the business's current market position and projected market, outlining any increases in market share; and
• a list of all shareholders and key management personnel.

Grant Application website

https://www.princeedwardisland.ca/en/service/pei-labour-rebate

Contact

For more information, please contact

Innovation PEI

94 Euston Street

PO Box 910

Charlottetown, PE C1A 7L9

Phone: 902-368-6300

Toll-free (North America): 1-800-563-3734

Fax: 902-368-6301