Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for Velsoft Training Materials Inc., based in New Glasgow, Nova Scotia.
Velsoft, a fully-integrated e-learning company, has the potential to create up to a maximum of 30 new jobs related to the expansion of its virtual campus opportunities and line of business. Based on the maximum growth forecast of the agreement, NSBI estimates the company could spend $4,500,000 in salaries.
It is also estimated the new employees would contribute provincial tax revenues of $480,000 through their income and consumption taxes. As a result, the company would earn a rebate up to $315,000 over five years.
Velsoft Training Materials Inc. would be eligible for a smaller rebate if it creates fewer than 30 new jobs.
— 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 of the rebate
— payroll rebates are only paid after a business has generated actual payroll for the Nova Scotia economy
— for every dollar a company spends on the new jobs it receives between five and 10 cents back
— when a company submits an annual rebate claim, it must send NSBI audited information that confirms the number of jobs it created that year
— payroll rebates are paid through the Strategic Investment Fund
Information on NSBI transactions can be found athttp://www.novascotiabusiness.com/fundingdisclosures.