NSBI Approves Payroll Rebate
Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for Ultra Electronics Maritime Systems Inc. located in Dartmouth, Nova Scotia.
Established in 1947, the company delivers sophisticated sonar systems to navies around the world. It is one of the oldest, continuously operating electronics design and manufacturing operations in Canada, and the largest electronics product design company in Atlantic Canada.
Ultra could potentially create up to 150 jobs which would be supported by the five-year payroll rebate agreement. Based on the maximum growth forecast of the agreement, NSBI estimates that the company could spend about $37 million in salaries. It also estimated that the new employees would contribute provincial tax revenues of around $4.7 million through their income and consumption taxes. As a result, the company would earn a rebate of up to $2.5 million over five years.
The company will be eligible for a smaller rebate if it creates fewer than 150 new jobs.
- payroll rebates are designed in a way that the tax revenue generated for Nova Scotia by the new jobs 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 has 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