Apply for Equipment Purchasing Tax Credit
The Enriched Investment Tax Credit adds to the existing PEI Investment Tax Credit of 10 per cent. It is applied to certain capital investments by manufacturing and processing companies. An enriched tax rebate of 25 per cent will be available through a pre-approved certificate process for high-productivity applications with a strong export focus.
Am I eligible for the Enriched Investment Tax Credit?
You may apply if your business is involved in manufacturing or processing, as defined by Canada’s Income Tax Act. Canada Revenue Agency Interpretation Bulletin IT-145R offers information about “manufacturing and processing” and how it applies to specific industries. The Enriched Investment Tax Credit is the same. You may apply if you intend to make a qualified investment in unused capital property that meets the guidelines for tax-deferred status.
How do I apply?
To qualify for the 10 per cent Investment Tax Credit, you will proceed as usual. After making the eligible investment you will claim the credit when you file your income tax. To access the 25 per cent tax rebate, you will first submit proposals to Innovation PEI. The credit will be issued on approval. The rebate will be offered after you provide cost information, with the certificate and the appropriate income tax filing, to Innovation PEI.
Application must be submitted before any financial or legal commitment is made on the project.
What do I need to apply for this service?
You should be prepared to provide the following:
- Business Plan Marketing Plan Project
- Feasibility or Market Study
- Competitive Analysis
- If the application concerns a study, please provide the consultant’s proposal(s) and the study’s terms of reference. (Costs should be supported by written quotations.)
What other information do I need to know before I fill in the application?
- Outline the history and description of your business.
- Existing businesses are required to provide detailed Financial Statements for the previous two years.
- New businesses and businesses planning expansions are required to submit complete business plans.
- List all shareholders and key management personnel.
- Describe the proposed project or activity in relation to the products and/or services delivered by your company.
- Describe the economic benefits to your organization and to Prince Edward Island.
- Provide detailed information on the estimated costs of the proposed project or activity. (Cost estimates should be supported by written quotations.)
- Outline all financial sources and provide appropriate contact information. (For example, lending institutions, banks, government loans and/or grants).
- Describe the size and capacity of your existing facility in relation to the proposed activity.
- Explain your current market position and identify your projected market outlining any increases in market share.