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Payroll Rebate Approved

Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for Global Spatial Technologies Solutions Inc. (GSTS) of Ottawa.

GSTS focuses on developing applications using space and ground sensors, to enhance safety, energy efficiency, security, and environmental sustainability of the transportation and maritime sector. By opening operations in Halifax, the company has the potential to create up to a maximum of 42 new jobs under the payroll rebate agreement. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates GSTS could spend $14,345,000 in salaries.

It is estimated the new employees would contribute provincial tax revenues of about $1.95 million through their income and consumption taxes. As a result, GSTS would earn up to $1,147,600 through the rebate agreement. GSTS would receive a smaller rebate if it creates fewer than 42 new jobs.

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

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