As part of an ongoing commitment to develop and implement incentive programs to attract new investment that supports innovation, economic development and diversification in Newfoundland and Labrador, the Honourable Andrew Parsons, KC, Minister of Industry, Energy and Technology, today announced details of the Provincial Government’s new Job Accelerator and Growth Program.

The Job Accelerator and Growth Program will incentivize qualified, established, profitable companies to establish and grow in Newfoundland and Labrador. The program is a valuable tool to attract high-growth companies and investment to the province, and will build on the success of other initiatives undertaken to support business growth.

Minister Parsons will be available to discuss the new program with media outside the House of Assembly today (Tuesday, July 25) at 1:00 p.m.

The application-based program provides qualified companies with a payroll rebate of 10 per cent for each incremental job created. A further five per cent is added for the hiring of a recent graduate in the province or a new resident to the province from another jurisdiction with priority skills that are in limited supply in Newfoundland and Labrador.  In return, the applicant must agree to create at least 20 incremental jobs over a three-year period with a minimum average salary of $50,000, and must demonstrate a long-term commitment to the province in the form of capital or other investment.

The Job Accelerator and Growth program provides Newfoundland and Labrador with a competitive advantage compared to other jurisdictions offering similar incentives to attract companies and investments.

This program is in alignment with the Provincial Government’s population growth strategies and will help to attract and retain companies that employ recent graduates, individuals with priority skills, and newcomers to increase the magnitude and capabilities of the local labour force.

The funds for this program are made available from the Department of Industry, Energy and Technology’s existing Investment Attraction Fund allocation, with up to $2 million in funding to be utilized annually for the next five years.

Quotes
“Our government is working successfully to attract new investment, new industries and new companies to Newfoundland and Labrador. Through the Job Accelerator and Growth Program, we will be further supporting the creation of new, well-paid jobs to generate a positive net return to the provincial treasury while continuing to support the growth of a diversified and innovative economy.”
Honourable Andrew Parsons, KC
Minister of Industry, Energy and Technology

“We welcome investments and incentives that help businesses in our province build and grow. This program will provide support to businesses who are already contributing significantly to our economy and community by giving them additional support to expand and attract talent. Whether it’s investing in new technologies, recruiting, developing new products and services, or expanding to new markets – we hope this program gives NL-based businesses an advantage they need to compete and succeed.”
AnnMarie Boudreau, CEO
St. John’s Board of Trade

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Learn more
Job Accelerator and Growth Program Guidelines

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BACKGROUNDER

 

Job Accelerator and Growth Program

The Job Accelerator and Growth Program aims to attract inward investment to the province in existing and emerging sectors, such as information technology and renewable energy.

The key objectives of the program include:

• Attracting inward investment in areas where there are gaps in innovation, technology and supply chain capabilities;
• Attracting individuals with priority skills to the province;
• Fostering inclusive job creation; and
• Increasing the likelihood of success for companies looking to enter or expand in the Newfoundland and Labrador economy.

Eligible Applicants
This program will seek high-growth opportunities presented by companies with a strong management team and a proven track record of success. Applications will be assessed on eligibility and conformance with program objectives, contingent on the availability of program funds. Companies in non-strategic sectors, such as residential and commercial real estate services, wholesale or retail, and lower-growth service operations will not be eligible.

To have a project approved by the Department of Industry, Energy and Technology for the Job Accelerator and Growth Program, each applicant under the program (“company”) must:

1. Be willing to (to be verified before disbursement):
   • Become a taxable Canadian corporation as defined in subsection 89(1) of the Income Tax Act (Canada), which was incorporated in Canada (either federally or in Newfoundland and Labrador) and legally entitled to conduct business in the province;
   • Become a Newfoundland and Labrador registered business in good standing; and
   • Have a permanent establishment in Newfoundland and Labrador.
2. Be an established enterprise and have operated for at least 24 months.
3. Demonstrate, to the satisfaction of the Department of Industry, Energy and Technology, that it is financially and commercially viable and has reasonable prospects for continued growth and
4. Be growth and innovative-focused.
5. Commit to creating at least 20 Full Time Equivalent (FTE) incremental jobs in the province after three years with an average gross salary of at least $50,000 annually.  The FTE threshold is 1,820 hours per year.
6. Not be in direct competition with local market entities.
7. Be willing to invest capital in the province or demonstrate intent to be a long-term presence.

Projects may include:

• Strengthening supply chains to enable production in Newfoundland and Labrador (projects that replace existing Newfoundland and Labrador-based producers are not permitted).
• Scaling production capacity for companies producing sustainable products and services that will support Newfoundland and Labrador’s economy.
• Increasing production capacity to enter new markets and produce new products.
• Establishing new production facilities in Newfoundland and Labrador.
• Technology development initiatives.

Eligible Costs
The Job Accelerator and Growth Program will provide an annual incentive for up to three years following approval in the program. This non-repayable contribution will be provided to the company at a standard rate of 10 per cent of the annual employee payroll. In addition, employee payroll related to the hiring of recent post-secondary graduates or newcomers to the province (new Canadians or Canadian residents from other provinces) with priority skills in limited supply may qualify for an additional five percent rebate.

Disbursements will occur annually and only after the department has verified that employment targets for each year have been met.

Applicants must commit to a minimum new hire threshold (minimum of 20 full-time equivalents) after three years, and annual targets shall be negotiated for years one and two.