Issue link: https://digital.canadianlawyermag.com/i/56562
the North East Avalon region. The program's aim is to encourage the development of new high-end resorts in the province. As well, Newfoundland and Labra- dor has a reduced corporate tax rate on manufactur- ing and processing profi ts earned in the province. Prince Edward Island offers a Specialized Labour fers a signifi cant non-tax incentive in the form of the Prince Edward Island Innovation and Development Labour Rebate, which provides rebates of 37.5 per cent of eligible salaries and wages paid in connection with the "development and/or commercialization of new products, processes and services that will be sold pri- marily beyond the borders of Prince Edward Island". OTHER TAX INCENTIVES Nova Scotia offers a three year tax holiday for new small business corporations with at least two employ- ees (at least one of whom is full-time and unrelated to any shareholder), provided the corporation is not associated with another corporation, is not a profes- sional corporation, and meets certain other criteria. Newfoundland and Labrador's Economic Divers- ifi cation and Growth Enterprises ("EDGE") Program provides incentives for new business initiatives if: there is the potential that at least 10 new permanent jobs will be created and maintained, a minimum cap- ital investment of $300,000 will be made (or incre- mental annual sales of $500,000 will be generated), the business would not establish itself or expand without EDGE assistance, the EDGE incentives will not give the business a direct competitive advantage over another business in the province, and there will be a substantial net economic benefi t to the prov- ince. The incentives include: a 100 per cent rebate on provincial corporate income tax and payroll tax for 10 to 15 years (depending on where the business is established in the province), a 50 per cent rebate on federal corporate income tax for the same period, a further fi ve year period of partial corporate income tax rebates (a phase out period), and a 100 per cent rebate on municipal property and/or municipal busi- ness taxes for the 10 to 15 year period, together with an additional fi ve year phase out period. Newfoundland and Labrador also offers a Resort Property Investment Tax Credit, which is a credit of 45 per cent of the purchase price of "Qualifying Resort Development Property Units" purchased outside of 6 SPRING 2012 DOING BUSINESS IN ATLANTIC CANADA Tax Credit, which is a personal income tax credit de- signed to attract specialized workers, with skills or knowledge not otherwise available in the Prince Ed- ward Island labour market, to Prince Edward Island. Individuals who qualify for the tax credit receive a rebate of up to 17 per cent of personal income taxes paid. The worker must migrate to Prince Edward Is- land to fulfi ll a specifi c position, which the employer must be able to demonstrate could not be fi lled from the Prince Edward Island labour pool (pre-approval is required before an offer of employment is made). Employees must be employed in certain "strategic sectors" identifi ed by the provincial government to qualify for the program. Also, the same position cannot qualify for both the Specialized Labour Tax Credit and the Innovation and Development Labour Rebate (described earlier). Prince Edward Island also offers sector-specifi c tax holidays for corporations in targeted sectors, cur- rently biosciences and aerospace. In addition to the provincial tax incentives de- scribed in this article, readers should keep in mind that the Atlantic provinces also offer many non-tax incentives (e.g. payroll rebates and direct grants) to attract businesses to their jurisdictions. If you are considering commencing business in Atlantic Canada, or expanding an existing business, your Stewart Mc- Kelvey advisor can assist you in navigating through the many available options. A professional tax ad- visor should be consulted in all cases before acting on the basis of the information in this article, as all of the programs have detailed eligibility requirements that must be satisfi ed and which cannot be described in detail in an article of this length. Jim Cruickshank Halifax, N.S. 902.420.3394 jcruickshank@stewartmckelvey.com Joel Reed Saint John, N.B. 506.632.8306 jreed@stewartmckelvey.com