New tax incentives have been announced for two Prince Edward Island industrial parks: the existing West Prince Business Park in Bloomfield and the Pooles Corner Business Park which is currently under development. The Honourable Mike Currie, Minister of Development and Technology, unveiled this latest plan today to further promote and encourage business development across the province.
"The business environment is strong on the Island, and PEI business parks already offer a great deal of benefits to companies that are starting up, expanding or relocating," said Minister Currie. "Identifying two 'tax-free' zones in outlying areas of the province will encourage further growth and spread business development across PEI.
"When prospecting for businesses to come to the province, businesses want convenience and they want the proper infrastructure," added Minister Currie. "The eastern and western extremities of the province needed infrastructure, and we felt the announcement of tax-free business parks would do a lot to encourage business expansion in those areas."
Companies locating within the West Prince or Pooles Corner business parks will receive added tax incentives in addition to the traditional benefits garnered at any Island business park such as available labour force and low business costs. The tax incentives are:
SALES TAX: a full annual rebate in sales tax paid to the PEI government attributed to the purchase of goods and services related to operations within the park, as well as a full annual rebate, for the first three years of operation, of sales tax paid on capital purchases.
CORPORATE INCOME TAX: an amount equal to thirty percent (30%) of the company's capital investment in the park will be set aside to offset future. corporate income tax paid to the government of PEI
REAL PROPERTY TAX: a full rebate annually of all real property tax attributable to ownership of facilities within the park.
In order to receive the above tax incentives, companies must meet certain criteria such as: be a newly incorporated entity; have potential for a minimum capital investment of $300,000, or incremental sales $500,000 annually; have potential to create a minimum of 10 jobs and be consistent with the principle of sustainable economic development. Minister Currie also stressed that no company will receive these tax incentives if their move to either one of these parks will displace jobs currently located in another part of PEI or will give the company an unfair competitive advantage over existing businesses in the province.
"The tax incentives aren't designed to promote any one area of PEI. Instead the goal is to stimulate new economic growth which will benefit the entire province through business development and increased employment," said Minister Currie. "This is why no company will receive these benefits unless its operation represents new opportunities which in no way pose a negative impact to any other area or business in PEI."
The Province of PEI, through PEI Business Development, encourages growth at the following: Borden-Carleton Business Park, Charlottetown Airport Authority, Cornwall Business Park, Gateway Village, Kensington Business Park, Kinkora Area Business Centre, Slemon Park Industrial Park, Souris Food Park, Strait Crossing Fabrication Yard, Stratford Business Park, Summerside Industrial Park, West Prince Business Park and the West Royalty Industrial Park. Inquiries can be directed to PEI Business Development's Property Manager at (902)368-6300.