Specialized Labour Tax Credit for Employers
The Specialized Labour Tax Credit provides an incentive for workers with specialized expertise or skills not yet available in Prince Edward Island to accept employment here.
Who is eligible for Specialized Labour Tax Credit?
The tax credit is paid to the specialized worker who migrates to the province for a specific position. The employer must demonstrate that the position was previously advertised in local print news media and could not be filled from the existing PEI labour pool.
The company hiring the specialized worker must be active in a strategic sector such as:
- export-focused manufacturing and processing
- interactive, information and communication technology
- financial services
- aerospace
- bioscience
- renewable energy
The company will not be approved for both the Specialized Labour Tax Credit and the Innovation and Development Labour Rebate for the same position.
What level of assistance is available?
The Specialized Labour Tax Credit applies to personal income tax paid to a maximum of 17 per cent on the eligible income earned by an eligible individual. The credit is effective for one year from the employment start date.
What is the process to recruit specialized labour?
- This tax credit is not automatically available, apply for the tax credit before making an employment offer.
- Apply to Innovation PEI for a Specialized Labour Tax Credit certificate.
- If the application meets the criteria and the employee is approved, Innovation PEI will issue a Specialized Labour certificate to the eligible employee.
- To claim the rebate, the employee submits the certificate and a copy of the Notice of Assessment and T4 to Innovation PEI.
View the Specialized Labour Tax Credit Application for Certificate (PDF file)
Application must be submitted before any financial or legal commitment is made on the project.
Business Development Application (PDF)
Business Development Application (Online)
*This information is provided for information purposes and is not comprehensive and reflective of all Innovation PEI policies. Not all projects meeting the minimum assistance criteria outlined will receive funding. Please consult with an Innovation PEI staff member for guidance specific to your company's situation.