N.S. BUSINESS INC.–-Payroll Rebate Approved
Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for Surrette Battery Company Limited of Springhill, Nova Scotia.
Surrette Battery is a manufacturer of lead-acid batteries for railroad, marine, motive power, and renewable energy applications. The company has the potential to create up to a maximum of 90 new jobs under the payroll rebate agreement. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates Surrette Battery could spend $11.13 million in salaries.
It is estimated the new employees would contribute provincial tax revenues of about $1.18 million through their income and consumption taxes. As a result, Surrette Battery would earn up to $810,600 through the rebate agreement. Surrette Battery would receive a smaller rebate if it creates fewer than 90 new jobs.
- payroll rebates are designed in a way that the tax revenue generated for the province by the new jobs in Nova Scotia is always more than the amount spent on the rebate
- payroll rebates are only paid after a business has generated actual payroll for the Nova Scotia economy
- for every dollar a company spends on the new jobs, it receives between five and 10 cents back
- when a company submits an annual rebate claim, it must send NSBI audited information that confirms the number of jobs it created that year
- payroll rebates are paid through the Strategic Investment Funds
Information on NSBI transactions can be found at http://www.novascotiabusiness.com/fundingdisclosures.