Nova Scotia Investment Credits
February 19, 2010No CommentsInvestment Credit Program Strengthens Competitiveness of Nova Scotia Businesses
Economic and Rural Development
The province has introduced a program that will strengthen the competitiveness of Nova Scotia’s manufacturing and processing sector and help stimulate the province’s economy.
A new 10 per cent investment credit will allow businesses to improve operations and become more competitive, more productive and more sustainable.
“Nova Scotia businesses are facing critical changes and an increasingly competitive environment,” said Economic and Rural Development Minister Percy Paris. “At a time when the economy needs stimulation, this investment is a strong signal of support to this sector.”
The program, originally announced by Premier Darrell Dexter last fall, is an incentive to manufacturers and processors. It offsets the cost of purchasing new technology, machinery and equipment, and the savings are reinvested into the businesses.
“This is an investment that will pay significant dividends,” said Mr. Paris. “Productive and competitive firms often lead to better-paying, higher-skill jobs that are able to survive in the long term. And the money saved will stay right here in Nova Scotia.”
Administered by the Department of Economic and Rural Development, the program will reimburse companies investing $50,000 or more in a project for 10 per cent of the costs, to a maximum of $1 million. The credit is for eligible investments made after Jan. 1. The budget is $4.5 million for this fiscal year and starting in 2011-12, the program will have an annual budget of $25 million.
The province, in consultation with industry, developed the program to ensure it met the needs of the manufacturing and processing sector and that as many companies as possible could access the initiative.
“We are very pleased that government has listened to the needs of innovative manufacturers in Nova Scotia,” said Ann Janega, vice-president, Nova Scotia division of the Canadian Manufacturers and Exporters. “The new credit program is accessible, efficient and effective in improving productivity. It will increase the competitiveness of the manufacturing sector and create more jobs for Nova Scotians.”
The Manufacturing and Processing Investment Credit builds on the 10 per cent Atlantic Investment Tax Credit offered by the federal government for manufacturing and processing activities.
More information on the program, including guidelines and an application form, is available at www.gov.ns.ca/econ/mpic .
Economy, Taxation