To encourage bioscience companies to do business in Prince Edward Island, the province is offering a “tax holiday” to eligible companies. If you have clients in this industry, you may want to let them know about the benefits of this program and help them apply.
Both new and existing bioscience firms can apply, but they must have more than 10 employees and at least $750,000 in annual payroll costs. If a business gets approved for this program, it still needs to pay its provincial corporate income tax as usual but will then receive a rebate through Innovation PEI. The rebate can be in effect for up to 10 years.
To apply, businesses need to submit a Business Development Application Form to Innovation PEI. This form is also used for other programs so your clients must specify they are applying for the Bioscience Tax Holiday at the top of the form. They must include their contact name,
mailing address, and details for a contact person. They must also share information about their total sales, exports, and number of employees in PEI. On top of that, they need to attach a variety of supporting documents, including a description of the history of their business, a list of shareholders and managers, an outline of the benefits of their business to the province, and any additional information as requested. Existing businesses must include financial statements for the last two years, and new businesses must include business plans.
Helping your clients apply for tax credits and rebate programs is just one way to make your services even more valuable. If your clients don’t qualify for this particular program, consider finding other provincial or federal programs that can help them to offset their tax liability.