Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for GeoSpectrum Technologies Inc.
GeoSpectrum specializes in underwater acoustic transducers and listening systems. A transducer is an electronic device that converts energy from one form to another such as microphones and loudspeakers. For over two decades, the company has been meeting the needs of their customers as designers and manufacturers of hydrophones and sound projectors as well as consultants on the integration and testing of acoustic systems in the aerospace and defence sector.
By expanding operations in Nova Scotia, the company has the potential to create up to a maximum of 30 jobs under the payroll rebate agreement. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates GeoSpectrum Technologies could spend $7,000,000 in salaries.
It is estimated the new employees would contribute provincial tax revenues of $821,000 through their income and consumption taxes. As a result, GeoSpectrum Technologies would earn up to $490,000 over five years.
GeoSpectrum Technologies 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 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