NSBI Approves Innovation Rebate
Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of an innovation rebate for Michelin North America (Canada) Inc.
Since 1971, Michelin’s Pictou County site has been home to the company’s second-largest rubber-mixing operation. The facility also produces passenger-car and light-truck tires, curing membranes and houses corporate offices.
Michelin North America (Canada) Inc. is taking new steps to develop its Pictou operation with new equipment that will be the first of its kind in North America. The company is proceeding with a $14,278,000 total capital investment to install an innovative semi-finished manufacturing process, creating products that will be used in Michelin sites across the continent.
New equipment will create a previously imported product and will improve efficiency with faster production processes, increasing capacity of the facility and global competitiveness.
The company is eligible to earn a maximum innovation rebate of $3,569,500 upon completion of its project, based on eligible capital spending of $14,278,000.
To be considered for an innovation rebate, a company's total project costs must be between $2 million and $15 million. An approved rebate is 25 per cent against eligible project costs.
- the Innovation Rebate Program was developed in consultation with Nova Scotia companies
- the program provides financial incentives on projects that enable a company to increase innovation capacity through private-sector capital investments or adoption of new technologies and business processes
- the program provides a 25 per cent rebate based on eligible project costs, as defined in the Innovation Rebate Program Guidelines
- the total project cost must be between $2 million and $15 million. The maximum amount of eligible project costs to which the rebate will be applied is $15 million
- the maximum rebate amount for an eligible project, including related parties, cannot exceed $3,750,000 over a 24-month period
- the innovation rebate works as a rebate against a company’s direct costs and is only paid out once the project is complete
Information on NSBI transactions can be found at http://www.novascotiabusiness.com/fundingdisclosures .