Enriched Investment Tax Credit

Capital-intensive upgrades can be a major hurdle for manufacturers looking to scale, modernize, or compete in export markets. For Prince Edward Island businesses investing in new machinery or production equipment, the Enriched Investment Tax Credit offers a meaningful way to reduce the after-tax cost of those investments. Delivered by Innovation PEI, this credit builds on the province’s standard corporate investment incentive and is designed to encourage higher-productivity manufacturing and processing activity within the province.

The program is geared toward PEI-based companies that manufacture, process, or develop goods and services primarily for export, particularly in strategic areas such as advanced manufacturing, bioscience, clean technology, aerospace, ICT, and creative industries. Eligible businesses can receive a provincial corporate tax credit covering roughly a quarter of qualifying equipment costs, which is then applied against future PEI corporate income taxes. Because the support is non-repayable and tied directly to capital investment, it can significantly improve project feasibility when upgrading or expanding production capacity. Projects are assessed as they are submitted and must demonstrate a clear economic benefit to the province.

For manufacturing and processing businesses planning equipment purchases and long-term growth in PEI, understanding how this tax credit fits with other government supports can make a real difference. Reviewing the full program details can help determine whether your next investment could qualify.