Economic Development Minister Heath MacDonald
©Heather Taweel/The Guardian
Aerospace, bioscience companies outperform to earn higher benefits
The P.E.I. government is giving away $6.9 million more in tax rebates to aerospace and bioscience companies than it expected to, thanks to better sales and profits than originally predicted.
The province offers corporate tax rebates to up-and-coming sectors, such as aerospace and bioscience, as part of efforts to grow the province’s economy. The tax rebates are tied to business success – so the more revenue they generate for the economy, the more rebates they receive.
Cabinet recently approved a special warrant of $6.9 million to address the increase in tax rebates for 10 companies in these two sectors.
Economic Development Minister Heath MacDonald says increased provincial revenues will offset this special warrant, so it will not increase the province’s budget deficit.
“This is a sign of positive economic development in key sectors,” he said.
“As companies succeed and grow, they add employees who spend money in the community and they invest in expansions to their businesses, which contributes to the provincial economy.”
The bioscience industry in Prince Edward Island includes 40 companies that generate $125 million in sales annually. It employs more than 1,300 Islanders in highly skilled positions and is responsible for more than 1,700 direct and indirect jobs. Bioscience has tripled in size over the past 10 years.
Aerospace companies generate $149 million to the provincial economy and employ more than 1,360 Islanders. Like bioscience, the sector has grown steadily particularly in international exports, which have increased by 300 per cent over the past five years.
P.E.I. companies benefiting from $6.9 million in tax rebates
Aerospace sector: Vector; Honeywell; Action Aero; 3 Points Aviation; Tronos Jet Maintenance; MDS Coating Technologies; Tube-Fab
Bioscience sector: BioVectra; Sekisui Diagnostics; Elanco Animal Health