CII will contribute 20% toward the cost of technologically advanced machinery, equipment, clean technology, software, and hardware with preference given to export oriented corporations in qualified industries listed in section 2. The maximum contribution under the Productivity Investment Program for both the Workplace Innovation and Productivity Skills Incentive and Capital Investment Incentive combined is limited to $1 million in any provincial fiscal year.
CII gives preference to corporations that export outside of Nova Scotia. Consideration will be given to non-exporting corporations if a compelling case can be presented.
The CII is limited to corporations in the following industries:
Advanced manufacturing and processing
Development of non-traditional sources of energy
Aerospace and defence
Information and communication technology (ICT)
Professional, Scientific and Technical Services excluding the following: Legal Services; Accounting, Tax Preparation, Bookkeeping and Payroll Services; Advertising and Related Services; Photographic Services; Veterinary Services; Translation and Interpretation Services
Under certain circumstances, strategic gateway and trade related activities may be eligible under the Capital Investment Incentive.
In limited circumstances, activities including construction, farming, fishing, mining, logging, and petroleum and natural gas operations may be eligible where significant productivity enhancements can be demonstrated from the capital investment. For purposes of CII, companies primarily involved in wholesale, retail, and accommodations and food services are excluded.
"Qualified Property" means technologically advanced machinery, equipment, clean technology, software, and hardware. The decision as to what assets meet the definition as Qualified Property is at the discretion of the Province.
In general, the property must not have been used or leased before it was acquired by the corporation and will be used by the corporation in Nova Scotia. Where used equipment is deemed eligible by prior written consent, it may not have previously generated a Capital Investment Incentive or a Manufacturing and Processing Investment Credit.
It should be noted that not all Qualified Property for an approved project will necessarily be eligible for the 20% Investment Incentive. It is the responsibility of the corporation to demonstrate to the satisfaction of the Province that the property should be considered "Qualified Property."
CII will be reduced to the extent that non-repayable funding is contributed from other government of Nova Scotia sources.
To be eligible to claim the 20% Capital Investment Incentive, an application must be submitted to the Department of Economic and Rural Development and Tourism (ERDT), through the Investment Division, prior to any commitment to purchase the Qualified Property. The corporation will provide details of the anticipated productivity improvement, impact on operations and employment, payback period, estimated costs and a copy of the previous year financial statements. If the application is approved, a Letter of Offer will be issued. On completion of the purchase, the corporation will submit a claim for reimbursement supported by invoices and proof of payment. A reimbursement of 20% of the cost, up to a maximum of $1 million, will be issued. Acquisitions less than $25,000 will not be considered.
Criteria for the Nova Scotia Capital Investment Incentive
The 20% Capital Investment Incentive is limited to Qualified Property intended for productivity improvements and aligns with the Province’s economic plan.
Other factors considered in the evaluation of an applicant's request for assistance will include:
potential for long-term viability;
qualifications and track records of managers;
cost benefit to the province;
availability of program funds;
level of technological advancement;
degree of productivity enhancements;
payback period for the investment;
level of assistance from other government programs offered or available; and
other information as ERDT may reasonably request from time to time.
Application for the Nova Scotia Capital Investment Incentive
A corporation may apply for CII with respect to one or more Qualified Properties, but in no case will a corporation be eligible for more than $1 million in reimbursement in any provincial fiscal year. Qualified Property information must be provided in Attachment A of the application form and the application must be made after December 20, 2010 and prior to any commitment to purchase the Qualified Property or as agreed upon in the Letter of Offer (outlined below in guideline 7).
During periods of significant demand, it may be necessary to limit applications within the availability of funds for the program. As part of the program administration it would ultimately be the responsibility of The Province will exercise the sole discretion to determine such limitations, as well as to determine what constitutes Qualified Property under the program.
Approval and Issuance of the Nova Scotia Capital Investment Incentive
Upon receipt, the application for CII will be reviewed. If the application is approved, a Letter of Offer will be issued. The Letter of Offer will provide the following information:
the name of the corporation to which the Capital Investment Incentive will be issued and amount of maximum contribution;
a description of the approved Qualified Property and
other information specific to the particular application, as required.
Approvals are at the sole and absolute discretion of the Province.
Requirement to Provide Information and Audit
Upon completion of the acquisition and installation of the Qualified Property, the corporation agrees to provide such other information as ERDT may reasonably request from time to time for program evaluation purposes including, but not limited to, information that the Qualified Property is retained for at least five years, failing which, the corporation agrees to repay the contribution to ERDT.
ERDT shall have the right, acting in its sole discretion, to audit the corporation's records and documentation related to this transaction.
Freedom of Information and Protection of Privacy Act
Information collected in connection with this program is subject to, and will be treated in accordance with, the Nova Scotia Freedom of Information and Protection of Privacy Act. For additional information see: www.foipop.ns.ca/.
Revocation of Letter of Offer
A Letter of Offer may be revoked where government is satisfied that the corporation was not eligible for CII, or that the property was not a Qualified Property, on the basis of information discovered after the issuance of the Letter of Offer.
Availability of funding under the Capital Investment Incentive is allocated based on adherence to the criteria outlined in the program guidelines and on a "first come, first serve" basis until available funding has been exhausted. The Province may terminate the Productivity Investment Program or amend the Program at any time in its sole discretion, however, any issued Letter of Offer will be honoured.
In the event of the corporation becoming insolvent or making an assignment under the Bankruptcy and Insolvency Act, making a proposal to creditors (whether voluntary or involuntary) under the Bankruptcy and Insolvency Act, having a petition under the Bankruptcy and Insolvency Act filed or presented against it, taking or proposing to take the benefit of any provision of the Companies Winding Up Act of Nova Scotia or the Companies' Creditors Arrangement Act of Canada or such similar legislation, or ceases to carry on business in the Province of Nova Scotia, the issued Letter of Offer shall become null and void.
Summary of Timelines and Deadlines
A corporation is not eligible for a Capital Investment Incentive unless the corporation is approved for the Capital Investment Incentive prior to any commitment to purchase the Qualified Property or as outlined in the Letter of Offer. The Letter of Offer is valid for 6 months from the date issued unless otherwise outlined in the Letter of Offer.
Approved corporations will consent to participate in any public announcement and/or public ceremony relating to the awarding of the Investment Incentive to the corporation and related accomplishments, at a mutually agreeable time.
Applications for training support under CII can be submitted to:
Economic and Rural Development and Tourism
Capital Investment Incentive
1660 Hollis St.
Halifax, NS B3J 1V7
Tel: 902- 424-8822