Apply for Share Purchase Tax Credit
The Share Purchase Tax Credit provides a tax rebate to a Prince Edward Island personal individual, aged 19 or over, who invests in an eligible Prince Edward Island company.
Who is eligible for Share Purchase Tax Credit?
The company issuing the eligible share must apply for the Share Purchase Tax Credit. Publicly traded companies are not eligible.
The company must:
- be active in a strategic sector such as:
- export-focused manufacturing and processing
- interactive, information and communication technology
- life sciences
- renewable energy
- be permanently established in the province with 75 per cent or more of its payroll to employees residing in Prince Edward Island .
What level of assistance is available?
The Share Purchase Tax Credit provides a tax rebate on Prince Edward Island personal income tax in the amount of 35 per cent of the value of an eligible investment in an eligible PEI corporation. The maximum credit that an individual may claim in any taxation year is $35,000.
What is the process to receive a share purchase rebate?
- Apply to Innovation PEI for a Share Purchase Tax Credit certificate by completing the Business Development Application (pdf or online).
- If the application meets the criteria, Innovation PEI will issue a Share Purchase Tax Credit certificate to the company, setting out the cost of the qualified share and other information.
- Upon receipt of compensation for the share, the company will provide the certificate to the investor.
- The investor can claim the rebate by submitting the Share Purchase Tax Credit certificate with the investor's notice of assessment 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.