Hiring specialized talent to turn new ideas into market-ready products can be a major cost for growing companies on Prince Edward Island. The Innovation and Development Labour Rebate Program is designed to ease that pressure by helping Island businesses offset a portion of the wages tied directly to innovation and commercialization work. Delivered by Innovation PEI, this refundable tax credit supports projects focused on developing, expanding, or bringing new products, processes, or services to market—particularly those aimed at customers beyond PEI.
The program is a strong fit for small, medium-sized, and larger businesses in sectors such as bioscience, aerospace and defence, advanced manufacturing, clean technology, information technology, and creative industries. Eligible projects typically involve incremental job creation connected to innovation, with support covering roughly 25 percent of qualifying labour costs for new full-time roles. While projects may span longer periods, the rebate is generally calculated on up to one year of eligible wages, helping businesses manage early-stage staffing costs as they scale new offerings.
Because funding levels vary by project and applications are assessed as they are received, timing and project readiness matter. For PEI businesses planning to invest in skilled talent to drive export-focused growth, learning more about how this labour rebate works—and how it fits alongside other supports—can be an important next step.
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