Nova Scotia Business Inc. (NSBI) has approved business development incentives in the form of payroll rebates for Canadian Maritime Engineering Limited (CME), Mobivity Holdings Corp. (Mobivity), and TD Insurance.
CME Ltd. specializes in advanced manufacturing and repair, industrial services, and custom engineering for industries including oil and gas, mining, power, manufacturing, as well as national defence programs. The company has the potential to create up to a maximum of 80 jobs in its expansion of business operations in Sydney, Sambro, and Woodside, Halifax Regional Municipality. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates that CME could spend $17.5 million in salaries.
It is estimated the new employees would contribute provincial tax revenues of about $1.94 million through their income and consumption taxes. As a result CME is qualified to earn up to a maximum of $1.4 million through the payroll rebate agreement. CME would be eligible for a smaller rebate if it creates fewer than 80 new jobs.
To read more about CME’s plans and operations in Nova Scotia, go to http://www.novascotiabusiness.com/CME
Mobivity, a mobile marketing company headquartered in Arizona, has the potential to create up to a maximum of 40 jobs in its expansion of business operations in Nova Scotia. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates that Mobivity could spend $5.8 million in salaries.
It is estimated the new employees would contribute provincial tax revenues of about $611,000 through their income and consumption taxes. As a result Mobivity is qualified to earn up to a maximum of $427,500 through the payroll rebate agreement. Mobivity would be eligible for a smaller rebate if it creates fewer than 40 new jobs.
TD Insurance, Canada’s largest direct-response home and auto insurance group, has the potential to create up to a maximum of 300 jobs in its expansion of business operations in Nova Scotia. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates TD Insurance could spend $49,712,500 in salaries.
It is estimated the new employees would contribute provincial tax revenues of about $5,211,387 through their income and consumption taxes. As a result TD Insurance is qualified to earn up to a maximum of $3,977,000 through the payroll rebate agreement. TD Insurance would be eligible for a smaller rebate if it creates fewer than 300 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