The Government of Prince Edward Island is pleased to renew the Aerospace Tax Rebate Program, says Minister of Innovation and Advanced Learning Allen Roach.
“I am pleased to announce a 10-year extension to the rebate program that has successfully assisted with attracting and retaining aerospace companies since 1993,” said Minister Roach. “Prince Edward Island’s aerospace sector is a strong contributor to our province’s economy and it is important that we continue to accelerate this expanding sector to ensure a vibrant economic future in our province.”
The Aerospace Tax Rebate Program provides a full rebate annually on all corporate income tax paid to the province for operations conducted in Prince Edward Island to eligible aviation-related companies. Companies also receive a full annual rebate of all real property tax attributable to ownership or rental of facilities in Prince Edward Island. Eligible companies must be aerospace firms operating in Prince Edward Island with 20 or more employees or a payroll in excess of $700,000. The program will apply to Aerospace companies under the current program, and new aerospace companies that fit the criteria. The current program is set to expire on December 31, 2012.
“Today’s announcement is a great example of the progress government is making in their commitment to further enhance and enrich its relationship with Aerospace P.E.I.,” said Jeff Poirier, Director, Aerospace Association of Prince Edward Island. “This tax rebate program has proven to be of great benefit to aerospace companies in the past and an additional 10 years will certainly allow aerospace companies to be even more competitive on the industry’s world stage.”
An economic impact analysis of the aerospace sector on Prince Edward Island shows the sector has been growing successfully since 1992, contributing greatly to the province’s economy. The sector has grown in sales from $5 million in 1992 to more than $360 million last year. The direct payroll averages $39 million per year, generating about $3.7 million in provincial income taxes, and more than 3,500 jobs on Prince Edward Island can be attributed to the aerospace industry. The Government of PEI continues to drive the economy and profile of the province, inspiring growth in people, productivity and economy, now and into the future.
For more information about the Aerospace Tax Rebate Program, visit www.innovationpei.com.