News release

Payroll Rebate Approved

Nova Scotia Business Inc. (Dec. 2004 - Nov. 2022)

Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for MDA Systems Ltd., a space and defence company developing advanced surveillance solutions for export sale to NATO and militaries worldwide.

MDA Systems Ltd. will develop software from its Dartmouth office that will enable its customers to be aware of what is happening on oceans and waterways using data from the internet, satellites and national systems.

The company has the potential to create up to a maximum of 50 jobs under the five-year payroll rebate agreement. Based on the maximum growth forecast of the agreement, NSBI estimates the company could spend $13,685,000 in salaries.

It is also estimated the new employees would contribute provincial tax revenues of $1,752,000 through their income and consumption taxes. As a result, the company would earn a rebate up to $1,094,800 over five years.

MDA Systems Ltd. would be eligible for a smaller rebate if it creates fewer than 50 new jobs.

Quick facts:

  • 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 of 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 Fund

Information on NSBI transactions can be found at http://www.novascotiabusiness.com/fundingdisclosures .