NSBI Approves Payroll Rebate
Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for REDspace Inc. to expand its operations in Bedford.
REDspace is a full-service digital studio specializing in mobile, web, video and gaming for media brands and networks including Turner, NBC, FOX, Viacom, and Sony Pictures. The company provides new ways for its clients to deliver interactive experiences to its users around the world.
REDspace Inc. has the potential to create up to 125 jobs under the five-year payroll rebate agreement. Based on the maximum growth forecast of the agreement, NSBI estimates the company could spend $22,187,500 in salaries.
It is also estimated the new employees would contribute provincial tax revenues of $2,518,000 through their income and consumption taxes. As a result, the company would earn a rebate up to $1,497,500 over five years.
REDspace Inc. would be eligible for a smaller rebate if it creates fewer than 125 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 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 .