Apply for Specialized Labour Tax Credit
The Specialized Labour Tax Credit provides an incentive for workers with specialized expertise or skills not yet available in Prince Edward Island to accept employment here.
Who is eligible for Specialized Labour Tax Credit?
The tax credit is paid to the specialized worker who migrates to the province for a specific position. The employer must demonstrate that the position was previously advertised in local print news media and could not be filled from the existing PEI labour pool.
The company hiring the specialized worker must be active in a strategic sector such as:
- export-focused manufacturing and processing
- interactive, information and communication technology
- financial services
- renewable energy
The company will not be approved for both the Specialized Labour Tax Credit and the Innovation and Development Labour Rebate for the same position.
What level of assistance is available?
The Specialized Labour Tax Credit applies to personal income tax paid to a maximum of 17 per cent on the eligible income earned by an eligible individual. The credit is effective for one year from the employment start date.
What is the process to recruit specialized labour?
This tax credit is not automatically available, apply for the tax credit before making an employment offer.
Apply to Innovation PEI for a Specialized Labour Tax Credit certificate.
If the application meets the criteria and the employee is approved, Innovation PEI will issue a Specialized Labour certificate to the eligible employee.
To claim the rebate, the employee submits the certificate and a copy of the Notice of Assessment and T4 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.