NSBI Approves Payroll Rebate
Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for East Coast Metal Fabrication (2015) Inc. (ECMF).
Located in Edwardsville, Cape Breton Regional Municipality, ECMF is a custom metal fabricator that services the heavy and light metal fabrication markets as well as the oil, mining and marine industries throughout Canada and internationally.
ECMF has the potential to create up to 80 jobs under the five-year payroll rebate agreement. Based on the maximum growth forecast of the agreement, NSBI estimates the company could spend $9.45 million in salaries.
It is also estimated the new employees would contribute provincial tax revenues of $1.2 million through their income and consumption taxes. As a result, the company would earn a rebate up to $680,400 over five years.
ECMF will be eligible for a smaller rebate if it creates fewer than 80 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 https://www.novascotiabusiness.com/fundingdisclosures .