Nova Scotia Business Inc. (NSBI) has approved two business development incentives in the form of payroll rebates for Apple Valley Foods Incorporated and NTT Data Canada Inc.
Apple Valley Foods Incorporated (AVF), located in Kentville, is a manufacturer and exporter of frozen fruit pies. AVF has the potential to create up to 80 jobs in its expansion of its business operations in Nova Scotia. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates that the company would spend $15,400,000 in payroll over the duration of the agreement.
It is estimated the new employees would contribute provincial tax revenues of $1,644,000 through their income and consumption taxes over the five years. As a result, AVF would earn up to $1,155,000 through the payroll rebate, over five years.
AVF would be eligible for a smaller rebate based if it creates fewer than 80 new jobs.
NTT DATA Canada Inc. (NTT DATA), located in Halifax, is expanding its Nova Scotia operations and has the potential to create up to 500 jobs in its expansion in Halifax. Based on the maximum growth forecast of the six-year payroll rebate agreement, NSBI estimates that NTT DATA could spend $87.75 million in salaries over the duration of the agreement.
It is estimated the new employees would contribute provincial tax revenues of about $9.511 million through their income and consumption taxes. As a result, the company is qualified to earn up to a maximum of $7,020,000 through the payroll rebate agreement.
NTT DATA would be eligible for a smaller rebate if it creates fewer than 500 new jobs.
For more information on Apple Valley Foods and NTT DATA, go to www.nsbi.ca/articles.
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