October 12, 2006
For immediate release
Premier Announces New Tax Incentives Aimed to Bolster Growth of Bioscience Industry in Prince Edward Island
Development and Technology
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Under this new tax incentive program, bioscience companies of more than 10 employees and a $750,000 annual payroll are eligible to receive a full rebate on their provincial corporate income taxes for up to 10 years. Premier Binns said money rebated to bioscience companies will be reinvested, helping to create more jobs and opportunities in the sector.
“This major tax rebate will be a great boost to further strengthen the bioscience industry which already represents over $60 million in revenues to Prince Edward Island. Eighteen of these companies now employ over 650 people,” said Premier Pat Binns. “This program will be a strong incentive for established bioscience companies to relocate to PEI and bolster the growth of those already operating here. It will create even more higher-paying jobs and economic diversity in our Island economy.”
The Premier said similar tax incentive packages have helped to stimulate growth in the aerospace sector; and the Progressive Tax Rebate Program, announced by the Provincial Government in 2004, has helped to create upwards of 600 new jobs in PEI.
“Bioscience has seen significant growth in the last 6-7 years and, with this announcement today along with other incentives already in place, this industry will continue to see increasing revenues,” said Hon. Mike Currie, Minister of Development and Technology. “Our Government, under the leadership of Premier Pat Binns, has identified the bioscience industry as a targeted sector of our economy for growth, and we believe today’s announcement will allow our province to be a leader in this field.”
Growth in PEI’s Research and Development sector has led the country for the past three years. Premier Binns said an important element of this continued cluster development is to allow Island-based bioscience companies to compete in the global marketplace.
“While we have seen tremendous growth in bioscience in a short time, we have to continue to work closely with the industry to find ways for these companies to find an edge in what has become a very competitive industry worldwide,” concluded the Premier.