Apply for a Labour Rebate
The Innovation and Development Labour Rebate (IDLR) is a refundable labour rebate, which may apply to projects in support of the development and/or commercialization of new products, processes, and services that will be sold primarily beyond the borders of PEI. A new product, process, or service is one that has not previously been successfully developed in Prince Edward Island for commercial production or sale.
The IDLR provides a rebate equal 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. Any individuals maintaining ownership in the company are not eligible.
Projects are expected to be short term; the IDLR 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 IDLR. Innovation PEI may agree to pro-rate the eligible rebate, with partial payments over several years (maximum ten years).
Am I eligible?
Companies eligible to apply for the Innovation and Development Labour Rebate have a permanent establishment in PEI and carry on the development of new or innovative products, processes, or services within a strategic industrial sector. Strategic sectors include:
- export-focused manufacturing and processing;
- financial services;
- information and communications technology; and
- renewable energy.
How do I apply?
You must apply for the Innovation and Development Labour Rebate before the project is undertaken. To be eligible for assistance, your project must provide economic benefit to the province. For each project approved, claims will be accepted on a quarterly basis, with payments issued against eligible payroll expenditures supported by appropriate documentation.
For each approved project, 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). Should the project fail to comply with the terms and conditions of the contract or be discontinued, government may at its sole discretion:
- declare the applicant to be in nonperformance (default) of the contract;
- request the applicant to repay in full the incentive received; and/or
- take necessary legal action to collect the incentive amount in full with interest.
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.