NSBI Approves Payroll Rebates

Nova Scotia Business Inc. (NSBI) has approved new business development incentives in the form of payroll rebates for two companies choosing to locate and grow in Halifax.

Both are technology-related companies, but each works in different industry sectors.

Influitive helps companies create customer communities, through its platform AdvocateHub, to accelerate sales, improve customer experience, and drive product innovation.

Influitive has the potential to create up to 30 jobs under the five-year payroll rebate agreement. Based on the maximum growth forecast of the agreement, NSBI estimates the company could spend $7 million in salaries.

It is also estimated the new employees would contribute provincial tax revenues of $821,000 through their income and consumption taxes. As a result, the company would earn a rebate up to $448,000 over five years.

Influitive would be eligible for a smaller rebate if it creates fewer than 30 new jobs.

Savormetrics Inc. is a food technology company that creates tools for its clients to help them detect and predict food quality and safety metrics in real time. Their clients include grocery chains and food processors.

Savormetrics has the potential to create up to 75 jobs under the three-year payroll rebate agreement. Based on the maximum growth forecast of the agreement, NSBI estimates the company could spend $9,112,500 in salaries.

It is also estimated the new employees would contribute provincial tax revenues of $1,056,000 through their income and consumption taxes. As a result, the company would earn a rebate up to $619,650 over three years.

Savormetrics would be eligible for a smaller rebate if it creates fewer than 75 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 of 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 Fund

Information on NSBI transactions can be found at http://www.novascotiabusiness.com/fundingdisclosures .