Payroll Rebate Amendment Approved

Nova Scotia Business Inc. (NSBI) has approved a second amendment to the existing Bank of N.T. Butterfield and Son Limited business development incentive agreement, which was announced in December 2015, in the form of a payroll rebate.

With this amendment, the company is projected to create an additional 60 jobs in the province, for a total of 160 jobs over the six-year agreement. Based on the maximum growth forecast of the six-year amended payroll rebate agreement, NSBI estimates

The Bank of N.T. Butterfield and Son Limited will spend about $28 million in salaries.

It is estimated the new employees would contribute provincial tax revenues of about $3.6 million through their income and consumption taxes. As a result, The Bank of N.T. Butterfield and Son Limited is qualified to earn up to $2,232,016 through the payroll rebate over the six-year agreement.

The Bank of N.T. Butterfield and Son Limited will be eligible for a smaller rebate if it creates fewer than 160 jobs.

Quick Facts:

• in 2015 NSBI announced that The Bank of N.T. Butterfield and Son Limited had been qualified to earn a payroll rebate for up to a maximum of $840,000 over six years, for up to 50 jobs
• in 2017, the agreement was amended to allow for further growth in Nova Scotia, qualifying The Bank of N.T. Butterfield and Son Limited to earn a payroll rebate up to a maximum of $1,674,237 for up to 100 jobs
• the company has earned $737,015.20 on the first four years of its current payroll rebate agreement
• 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 spent on the rebate

Additional Resources:

Information on NSBI transactions can be found at https://www.novascotiabusiness.com/fundingdisclosures .