Established back in December 1994, the Economic Diversification and Growth Enterprises (EDGE) Program was designed to encourage new business investment in the province of Newfoundland and Labrador.
EDGE is an incentive-based program that is available to local companies who want to expand their businesses, local entrepreneurs who are interested in new business start-ups, as well as national and international companies who wish to establish a new enterprise in the province.
A new business or an existing business interested in expanding in the province may apply for EDGE status if:
- There is the potential to create and maintain at least 10 new permanent jobs in the province;
- It is prepared to make a minimum capital investment of at least $300,000, or generate incremental sales of at least $500,000 annually;
- It would not establish or expand in the province in the absence of the EDGE incentives, in preference to another location or at the time when it is proposed to do so;
- It will have a substantial net economic benefit to the province; and
- It would not result in the company having a direct competitive advantage over other businesses already established in the province, if provided EDGE status.
In order to receive EDGE benefits, the EDGE designated companies must reach and maintain these eligibility criteria before they enter into a contract with the province of Newfoundland, unless deemed a temporary circumstance by the Lieutenant Governor, in which a temporary pardon can be granted and benefits continued.
EDGE designated contracts may be amended or revoked at any time if the company fails to comply with the terms of the contract entered into with the Province.
Companies approved for EDGE status are eligible for the following incentives and benefits:
- 100% rebate on provincial corporate income tax and the provincial health and post-secondary education (payroll) tax. The tax “holiday” for eligible companies is 10 years within the Northeast Avalon area and 15 years outside the Northeast Avalon area, as defined in the Economic Diversification & Growth Enterprises Act;
- 50% rebate on federal corporate income tax for the periods referenced above.
- A further five-year phase-out period of partial rebates on the provincial and federal taxes referenced above, declining by 20 percent in each year of the phase-out period;
- 100% rebate on municipal property and/or municipal business taxes for 10 or 15 years, followed by a five-year phase-out of such rebates, where individual municipalities elect to participate in the EDGE program; and
- Access to unserviced Crown land for $1.00 where such land is required to implement the company’s business plan.
How to Apply
- Department of Tourism, Culture, Industry and Innovation
- EDGE Application Form
- Confidential Statement of Personal Net Worth
For more information regarding the Economic Diversification and Growth Enterprise program, please contact:
Tax Administration Division
Department of Finance
P.O. Box 8700
3rd Floor, East Block,
St. John’s, NL A1B 4J6
Tel: (709) 729-6297
Fax: (709) 729-2856