The Nova Scotia government has approved another payroll rebate agreement with a global information technology company that the province says could produce 1,000 jobs within six years.
In a release Tuesday, the province said the agreement with Cognizant could result in an estimated $246.6 million in combined salaries and benefits within six years. As well, the province would collect income and consumption taxes to the tune of $31.9 million from the new employees.
“As a result, the company could earn a rebate of up to $20.7 million under this agreement,” the province said. Payroll rebates typically mean the province will receive more in tax revenue than the amount spent on the rebate.
Nova Scotia first announced a rebate agreement with Cognizant in January 2022. In June 2023, Cognizant reached the milestone of 1,000 employees in Nova Scotia, which the province describes as “an impressive growth baseline on which the new rebate agreement will be applied.”
The province notes that the company will be eligible for smaller rebates if the targets outlined in the agreement are not met.
In the release, Cognizant’s Canadian head of delivery centres, Jay MacIsaac, said the company had “exceeded expectations in Halifax in under two years.”
“Our collaboration with local universities, such as Dalhousie, underscores our dedication to nurturing local talent combined with our global expertise. We are grateful for the Province’s support – together we’re driving Nova Scotia’s ICT sector forward,” said MacIsaac.
The jobs would be in the information and communications technology sector, which could include developers and analysts.