NSBI Approves Payroll Rebate

Nova Scotia Business Inc. (NSBI) has approved a business development incentive in the form of a payroll rebate for L3Harris Technologies Inc., in Enfield.

L3Harris is a leading provider of in-service support, with over 50 years of experience in the aerospace and defence markets. The company provides core functions, including the complete spectrum of supply chain management, integrated logistics support, software and cybersecurity and systems engineering.

L3Harris has the potential to create up to 75 jobs under the five-year payroll rebate agreement. Based on the maximum growth forecast of the agreement, NSBI estimates that the company could spend $18 million in salaries.

It also estimated that the new employees would contribute provincial tax revenues of around $2.3 million through their income and consumption taxes. As a result, the company would earn a rebate of up to $1.3 million over five years.

The company will be eligible for a smaller rebate if it creates less than 75 new jobs.

Quick Facts:

• payroll rebates are designed in a way that the tax revenue generated for Nova Scotia by the new jobs 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 has created that year
• payroll rebates are paid through the Strategic Investment Funds

Additional Resources:

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