Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for Web.com Canada, Inc., New Glasgow.
WEB.com Canada, Inc. is expanding in Nova Scotia and has the potential to create up to a maximum of 330 jobs in its expansion of business operations in New Glasgow. Based on the maximum growth forecast of the eight-year payroll rebate agreement, NSBI estimates that WEB.com Canada, Inc. could spend $78.8 million in salaries.
It is estimated the new employees would contribute provincial tax revenues of about $8.17 million through their income and consumption taxes. As a result, the company is qualified to earn up to a maximum of $6,307,200 through the payroll rebate agreement. WEB.com Canada, Inc. would be eligible for a smaller rebate if it creates fewer than 330 new jobs.
Web.com Canada, Inc. is also receiving support from the Department of Labour and Advanced Education for workforce development and attachment.
Quick facts:
— 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 spent on 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 Funds
Information on NSBI transactions can be found at http://www.novascotiabusiness.com/fundingdisclosures .
Source: Release