Incentives
Businesses choosing Summerside, Prince Edward Island are now eligible for incentives in the form of tax relief and locked-in energy rates. The new incentives are designed to encourage targeted businesses to locate or expand their operations in order to create more economic activity, increase consumer and investor confidence and demonstrate the City's commitment to improving conditions within the city.
The incentives will also encourage property owners and developers to invest in renovation, electrical systems and the expansion or creation of new mixed-use housing. You can download an application form here.
Tax Abatement Incentive
The City will rebate the municipal tax component for a minimum of three years on any incremental assessment on projects that achieve more than $500,000 in new assessment provided at least twenty‐five percent (25%) of the increased assessment is commercial. The rebate would apply to only the incremental assessment, and apply only to the municipal taxation levied. Further abatements up to five years total are available if applicants meet the eligibility criteria and create a minimum number of new jobs by the third year of the program.
Electrical Energy Cap Rate Incentive
In conjunction with the Tax Abatement Incentive, a unique Energy Incentive is also available for qualifying projects. With the recent completion of Summerside’s wind farm, Summerside Electric has effectively “locked in” a significant portion of its electric purchase costs. This security of pricing is being offered to new qualifying projects within the City who are customers, or will be customers, of Summerside Electric. The Energy Incentive Program is in the form of a rate freeze on electrical kilowatt charges for qualifying projects, and will remain in place for the same three to five year period as the municipal tax rebate component.
Complementary Provincial and Federal Incentive Programs
Innovation and Development Labour Rebate (IDLR)
A refundable wage rebate of 37.5% to projects in support of the development and/or commercialization of new products, processes and services that have not previously been successfully developed in PEI.
Specialized Labor Tax Rebate (SLTR)
The SLTR is used to hire and recruit key leadership personnel in the management and technical specialist areas for companies establishing operations in PEI where the knowledge or skill is not yet available in the local labour market. The 17% tax rebate applies to the personal income tax of the eligible individual.
Business Development Program (ACOA-BDP)
ACOA can provide an unsecured, interest-free loan toward the eligible costs of a new establishment, expansion, modernization or a project that improves your competitiveness. ACOA’s contribution is repayable on a time schedule (up to eight years) tailored to your business plan.
Atlantic Innovation Fund (AIF)
Aimed at increasing innovation capacity, the AIF can provide assistance of up to 75% of total eligible costs for commercial, private sector projects. Eligible costs include wages, salaries, capital costs and other operating expenses directly related to the research and development project.
Scientific Research and Experimental Development
The SR&ED program is the largest single source of federal government support for industrial R&D and it provides open-ended access to tax credits.
Low-Interest Loans
The Provincial Government provides secured, asset-based, low-interest repayable loans for eligible companies that are establishing or expanding operations in Prince Edward Island. The loan applications are reviewed on case-by-case basis and are based upon the capital needs outlined in a viable business plan. Apply today!
