The Innovation & Development Labour Rebate Program (IDLR)

The IDLR is a performance-based incentive offered to eligible companies expanding in or locating to Prince Edward Island.

The IDLR is a rebate of 37.5% of your eligible gross payroll paid out over a one year term. Innovation PEI may agree to pro-rate the eligible rebate, with partial payments over several years (for example, 7.5% for five yrs).

To receive the rebate, your company must create or retain a targeted number of jobs, at a minimum determined salary, within a set timeframe.

Aerospace Tax Holiday

A Tax Rebate Incentive Program for all eligible aviation-related companies provides a full rebate annually on all corporate income tax, sales tax, and real property tax paid to the province for operations conducted in Prince Edward Island. Eligibility requirements include:

• Aerospace firms operating in Prince Edward Island
• Aerospace companies in eligible activities that have 20 or more employees or a payroll in excess of $500,000
• Companies engaged in eligible activities that categorize them in the “Aerospace” sector as defined by the Province of Prince Edward Island

Bioscience Tax Holiday

The Bioscience Tax Holiday provides eligible companies with rebates of up to ten years of provincial corporate income taxes. Eligibility requirements include:

• Bioscience firms operating in Prince Edward Island
• Bioscience companies that have more than ten employees and a $750,000 annual payroll.
• Companies engaged in eligible activities that categorize them in the “Bioscience” sector as defined by the Province of Prince Edward Island.

Atlantic Canada Opportunities Agency Assistance Programs Business Development Program (BDP)

The Business Development Program (BDP) is designed to help you set up, expand or modernize your business by providing access to capital in the form of interest-free, unsecured, repayable contributions. ACOA can provide an unsecured, interest-free loan towards the eligible costs of a new establishment, expansion, modernization or a project which improves your competitiveness. ACOA's contribution is repayable on a time schedule tailored to your circumstances.

Atlantic Innovation Fund (AIF)

The Atlantic Canada Opportunities Agency’s Atlantic Innovation Fund (AIF) is an initiative through which the Government of Canada is making strategic investments aimed at increasing Atlantic Canada’s innovation capacity. The AIF focuses on R&D projects in the area of natural and applied sciences, as well as in social sciences, humanities, arts and culture, where these are explicitly linked to the development and commercialization of technology-based products, processes or services. The Atlantic Innovation Fund can provide assistance of up to 80% of total eligible costs for non-commercial projects and up to 75% of total eligible costs for commercial, private sector projects. Commercial applicants seeking funding of $1,000,000 or less are not eligible under the Atlantic Innovation Fund. Projects are approved under the Atlantic Innovation Fund through a series of competitive funding rounds.

Island Prosperity - A Focus for Change

Island Prosperity - A Focus for Change is an innovation and prosperity strategy launched by the Government of Prince Edward Island in late 2008. The Island Prosperity Strategy (IPS) includes support aligned under three main pillars: Investing in People, Investing in Innovation, and Investing in Economic Infrastructure.

Within the Investing in Innovation pillar are economic development initiatives targeted at four priority sectors: bioscience, information technology, aerospace, and renewable energy. Each of these sectors has significant potential for growth and is a natural fit with our traditional strengths, allowing our knowledge and resource based economy to evolve to include more innovative, competitive value chains.

A key economic development tool of the Island Prosperity Strategy is a suite of competitive peer-reviewed funding programs. The IPS Programs reward PEI companies with innovative projects, assisting with the costs associated with the development of proof of concept, development and commercialization.

Island Prosperity Strategy Funding Programs

The Pilot and Discovery Fund will contribute up to $25,000 to support early stage proof-of-concept projects that will lead to the development of new products, services or processes in the priority sectors. Projects that have a high level of risk but whose success may lead to strong economic development within PEI will be given preference.The Development and Commercialization Fund will support Island-based businesses and researchers who have moved beyond the prototype and pilot stage, have tested and developed a product and wish to move toward manufacturing or commercial scale production.

The Development and Commercialization Fund will contribute up to $100,000 to support projects that have moved beyond the prototype and pilot stage, have tested and developed a product, and are prepared to move toward manufacturing or commercial scale production.

The Rural Broadband Fund (RBF) is a strategic partnership between Bell Aliant and the Province of Prince Edward Island. This fund represents a commitment made by the Province and Aliant to increase investment in information technology projects in rural areas of Prince Edward Island. The RBF will provide a grant of up to $50,000 for one year projects (or $100,000 towards projects extending through two years) that demonstrate innovation in the information technology sector and focus on rural economic development through the use of the Island wide broadband network.