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Prince Edward Island Business Development
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INVEST IN PRINCE EDWARD ISLAND /
SECTORS OF EXCELLENCE /
Aerospace 
The aerospace industry continues to soar to new heights in Prince Edward Island since it took flight in the province just over 10 years ago. Aerospace is now Prince Edward Island’s fourth largest industry and it accounts for 25 per cent of international exports.
Today, the industry is Prince Edward Island’s second largest exporter, producing a broad range of products and services. While most of the work is oriented toward the regional aircraft market, Prince Edward Island-based companies are also involved in other related sectors such as helicopters, space and defence, mass-transit, medical equipment and high-performance industrial engine industries.
Some of the best-known names in aerospace have chosen to establish business in Prince Edward Island. Honeywell Engines, Systems and Services, Atlantic Turbines International, Inc., Wiebel Aerospace, Testori Americas Corp., MDS-PRAD Technologies,
Tronos Canada Inc and Tube-Fab Ltd. all call Prince Edward Island home.
There are approximately 700 employees in the aerospace industry across Prince Edward Island - the majority of these jobs are at Slemon Park.
Slemon Park is a 1,500 acre business park located just outside of Summerside, Prince Edward Island which includes an airport with two runways and numerous well maintained hangars ranging in size from 25,000 to 300,000 square feet.
Additionally, the Park has an on-site residential community with a full
range of recreational facilities.
Slemon Park is the only aerospace business park in Canada that offers on-site training. Holland College’s Aerospace Technology Centre has been an asset in the development of the aerospace industry with its ability to tailor training programs to meet existing tenants’ needs or the specific requirements of new tenants.
A Tax Rebate Incentive Program for all eligible aviation-related companies provides a full rebate annually on all corporate income tax paid to the province for operations conducted at Slemon Park. There’s also a full rebate annually of all sales tax paid to the government attributed to the purchase of goods and services, and a full rebate annually of all real property tax attributable to ownership or rental of facilities at Slemon Park.
The vibrant aerospace industry in Prince Edward Island holds promise for creating new employment opportunities and wealth for the province well into the future.
Tax Rebate Incentive Program
A 20 year tax rebate incentive program took effect on January 1, 1993 and applies to eligible companies
which establish operations at Slemon Park, Prince Edward Island. Eligible companies are defined as
those engaged in aviation or aerospace-related businesses, which may include, but is certainly not
limited to, original equipment manufacturers, strip and paint shops, repair and overhaul operations,
training and various aviation support businesses. The tax rebate incentive program includes the following
three taxes:
- Corporate Income Tax - A full rebate annually on all Corporate Income Tax paid to the government
of Prince Edward Island by aviation-related businesses for operations conducted at Slemon Park,
Prince Edward Island.
- Sales Tax - A full rebate annually of all sales tax paid to the Government of Prince Edward Island
attributed to the purchase of goods and services related to aviation-related activities at Slemon Park,
Prince Edward Island.
- Real Property Tax - A full rebate annually of all real property tax attributable to ownership or rental
of facilities at Slemon Park, Prince Edward Island.
Tax Advantage
| Net Income Before Taxes |
Slemon Park,
Prince Edward
Island |
Canada
(excluding PEI) (1) |
USA (2) |
| Net Income Before Taxes |
$1,000,000 |
$1,000,000 |
$1,000,000 |
| Federal Corporate Tax |
$221,200 |
$221,200 |
$340,000 |
| Provincial/State Corporate Tax |
$75,000 |
$139,300 |
$62,200 |
| Total Taxes |
$296,200 |
$360,500 |
$402,200 |
| Net Income After Tax (3) |
$703,800 |
$639,500 |
$597,800 |
| Rebate - Provincial/State Corporate Tax |
$75,000 |
$0 |
$0 |
| Rebate - Provincial/State SalesTax (4) |
$142,000 |
$0 |
$0 |
| Rebate - Provincial/State Property Tax (5) |
$15,000 |
$0 |
$0 |
| Total Rebate |
$232,000 |
$0 |
$0 |
| Net Income |
$935,800 |
$639,500 |
$597,800 |
| Percentage Increase In Net Income From Rebates |
33% |
0% |
0% |
Note 1 - 1996 Canadian Average excluding PEI
Note 2 - Average 8 US States (TX,WA,OH,MA,NC,CA,AR,FL) selected due to significant presence of aerospace industry.
Note 3 - Corporate capital taxes, franchise tax and business taxes for both Canada and US as well as Canadian Investment Tax Credits have been excluded.
Note 4 - Sales tax rebate based on operations of $10 million in sales & employing 100 people.
Note 5 - Property tax rebate based upon 50,000 sq. ft. building
Training
Holland College's Aerospace and Industrial Technology Centre in Slemon Park ensures the industry has the
personnel to meet their future growth. Our stable labour force and excellent training ensure the best
value in the industry.
For additional information, please contact us.
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