Payroll Rebate Approved

Nova Scotia Business Inc. (NSBI) has approved a business development incentive, in the form of a payroll rebate, for Lixar I.T. Inc., Halifax.

Lixar, a mobile application, analytics, cloud services and software design company, has the potential to create up to a maximum of 40 new jobs. Based on the maximum growth forecast of the five-year payroll rebate agreement, NSBI estimates Lixar will spend $6.9 million in salaries.

The new employees will pay provincial personal income taxes of about $752,000. As a result, Lixar will earn up to $552,000 through the payroll rebate, over five years.

Lixar will be eligible for a smaller rebate if it creates fewer than the 40 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 in the Nova Scotia economy
• for every dollar a company spends on the new jobs, it receives between five and ten 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.