If your PEI business is investing in new equipment, the Enriched Investment Tax Credit can reduce your provincial tax bill by covering part of the cost. This program offers a 25% corporate tax credit on eligible manufacturing and processing equipment, which is much higher than PEI’s standard 10% credit. Applying at the right stage can help you get approved.
The Enriched Investment Tax Credit (EITC) is a provincial corporate income tax credit managed by Innovation PEI. It supports export-focused businesses that invest in advanced equipment to grow or modernize their operations.
This program is different from PEI’s standard Corporate Investment Tax Credit of 10%. Eligible businesses receive the higher rate because they operate in priority sectors and focus on exports.
To claim the Enriched Investment Tax Credit, your business must:
Some businesses outside these sectors may still qualify if they produce first-of-its-kind exportable goods or services, but approval is up to Innovation PEI.
The credit applies to capital costs for qualified manufacturing and processing equipment. This usually includes:
General operating costs, labour, and marketing expenses are not eligible.
Claiming the Enriched Investment Tax Credit is not automatic. Timing and documentation are important.
Innovation PEI expects businesses to confirm eligibility before or during the investment phase, not after equipment is already in use. Tools like GrantHub’s eligibility matcher can help you quickly filter PEI tax credits by sector and project type.
You must submit a project application to Innovation PEI outlining:
Once approved, complete the equipment purchase and keep:
These documents support both Innovation PEI review and your corporate tax filing.
The approved tax credit is applied against your provincial corporate income tax. If you do not meet all program requirements, you may need to pay back the credit.
Buying equipment before confirming eligibility
Retroactive approvals are not guaranteed. Always check first.
Assuming all equipment qualifies
Only equipment used directly in manufacturing or processing is eligible. Office or general-purpose assets are usually excluded.
Ignoring export requirements
Businesses focused mainly on local PEI or Canadian markets often do not qualify.
Overlooking repayment conditions
This is not a refundable grant. Failing to meet program terms can mean you must repay the credit.
Q: What is the Enriched Investment Tax Credit in PEI?
It is a provincial corporate tax credit that covers up to 25% of eligible manufacturing and processing equipment costs for export-focused businesses in strategic sectors.
Q: Is the Enriched Investment Tax Credit refundable?
No. It is a repayable corporate tax credit, meaning it reduces provincial tax payable but may need to be repaid if conditions are not met.
Q: Do ICT and clean technology companies qualify?
Yes. ICT, renewable energy, and clean technology businesses are explicitly listed as eligible strategic sectors.
Q: Can startups apply for the Enriched Investment Tax Credit?
Startups may qualify if they are actively operating, export-focused, and investing in eligible equipment. Early-stage companies without export activity often do not qualify.
Q: How much can my business receive?
The maximum support is 25% of eligible project costs, with no published minimum investment threshold.
Getting the Enriched Investment Tax Credit can help reduce your equipment costs and support growth, but your project must fit PEI’s requirements. To make your application process easier, follow these steps:
Checklist for Claiming the Enriched Investment Tax Credit:
GrantHub tracks hundreds of active grant and tax credit programs across Canada, including PEI incentives. Using these resources helps you plan investments with confidence and avoid costly mistakes.
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