If your business operates in marine technology or aerospace in Prince Edward Island, tax rebates can reduce your corporate tax and property tax costs each year. PEI has targeted rebate programs for export-driven, high‑payroll firms in these sectors, administered by Innovation PEI. This guide explains how the Advanced Marine Technology Tax Rebate and the Aerospace and Defence Tax Rebate work, who qualifies, and how to prepare before you apply.
PEI uses tax rebates—not one‑time grants—to support long‑term employment and exports in strategic industries. These programs rebate a portion of eligible taxes you have already paid, which makes them especially valuable for established companies with steady payrolls.
The Advanced Marine Technology Tax Rebate was designed to support PEI’s growing marine technology cluster, which accounted for 8.3% of the province’s total exports in 2015.
Key eligibility requirements include:
Important: Innovation PEI notes that the Advanced Marine Technology Tax Rebate has expired. However, businesses with prior approvals or active agreements should confirm ongoing eligibility directly with Innovation PEI.
The Aerospace and Defence Tax Rebate supports firms operating in and around Slemon Park and other aerospace facilities across PEI.
To qualify, your business must:
The majority of PEI’s aerospace employment—over 900 workers—is based at Slemon Park, a 1,500‑acre aerospace business park near Summerside. However, your business does not need to be physically located at Slemon Park to qualify.
Both programs function as tax rebates, not upfront funding.
While Innovation PEI does not publish a fixed dollar cap, rebates are typically tied to:
There is no published maximum funding amount. Your rebate value depends on the taxes your business pays during the eligible period.
Because these rebates are tied to actual tax payments, they tend to benefit companies with:
Tools like GrantHub’s eligibility matcher can help you filter PEI programs by industry, payroll size, and export activity in seconds.
Unlike many grants, these tax rebates are negotiated directly with Innovation PEI.
Typical steps include:
Start this conversation early. Retroactive approvals are not guaranteed, especially if your business structure or staffing changes.
Assuming startups automatically qualify
These rebates require minimum employee and payroll thresholds. Early‑stage companies often fall short.
Ignoring export requirements
Advanced marine technology firms must be exporting from PEI. Domestic-only sales may disqualify you.
Waiting until tax season to ask about eligibility
Innovation PEI expects early engagement. Waiting too long can limit your options.
Not confirming tax treatment with your accountant
Tax rebates may be considered taxable income. Always confirm how rebates affect your corporate return.
Q: Is the Advanced Marine Technology Tax Rebate still available?
Innovation PEI states that the program has expired. Businesses with existing approvals should contact Innovation PEI to clarify ongoing rebate eligibility.
Q: Are these rebates capped at a maximum amount?
No public cap is listed. Rebates are tied to eligible taxes paid by your business, which means larger employers may receive larger rebates.
Q: Do new aerospace companies qualify for the Aerospace and Defence Tax Rebate?
Yes. Both new and existing firms can qualify if they meet employee or payroll thresholds and operate in an eligible aerospace or defence activity.
Q: Do I need to be located at Slemon Park?
No. While many aerospace firms are based there, location at Slemon Park is not a requirement.
Q: Are tax rebates taxable income in Canada?
In many cases, yes. The treatment depends on how the rebate is structured and recorded. Speak with your accountant for advice specific to your business.
GrantHub tracks hundreds of active grant and tax rebate programs across Canada—including PEI sector incentives—so you can quickly see which ones match your payroll, industry, and export profile.
If your business operates in marine technology or aerospace, these PEI tax rebates can materially reduce your annual tax burden. The key is confirming eligibility early and aligning your payroll and export activity with provincial criteria. GrantHub helps you stay on top of sector‑specific incentives and spot alternatives if a program has expired or changed.
See also:
Was this article helpful?
Rate it so we can improve our content.
Canada Proactive Disclosure Data
The Canadian government has funded over 400,000 businesses through 1.27 million grants and contributions. Check your eligibility in 60 seconds.