NSBI Approves Innovation Rebate

Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of an innovation rebate for RKO Steel Limited.

Based in Burnside Industrial Park, RKO Steel has been manufacturing steel products, coatings and other high quality steel items for over 30 years, for export across Canada, the United States and other international markets.

RKO Steel Limited is proceeding with a $2.9 million capital investment to add specialized stainless and aluminum welding equipment to meet the increased demand for export and help increase efficiency and production levels.

The company is eligible to earn a maximum innovation rebate of $725,000 upon completion of its project, based on eligible capital spending of $2.9 million.

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 up to 25 per cent against eligible project costs.

Quick facts:

• the Innovation Rebate Program was developed in consultation with Nova Scotia companies
• the Innovation Rebate 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 up to 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.