The Nova Scotia government is providing a total of $10 million over the next two years for a new “innovation rebate program” for the forestry sector, aimed at companies that invest in their operations.
Administered through Nova Scotia Business Inc., the program will provide a rebate of up to 25 per cent on eligible capital projects worth between $1 million and $15 million.
Projects that could be eligible for the rebate program include newly established production facilities, or initiatives that diversify products, improve production processes or provide production capacity to enter new markets.
The program is separate from the $50 million transition fund that was set up to assist the forestry sector following the closure of the Northern Pulp mill in Pictou County.
Last week, the province announced that it would top the fund back up after spending $13.5-million. It will also put the money into a trust to be administered by three government appointees it says will be announced soon.
So far, the transition fund has allocated $7 million to more silviculture and road work on Crown and private lands, $5 million to provide a guarantee for the Forestry Contractor Financing program and $1.5 million to help workers from across the sector connect to customized programming in the skilled trades.