Michelin plans EV tire production facility for Nova Scotia
The $300M project is getting assistance from the Capital Investment Tax Credit.
Key Takeaways:
- Michelin is planning a $300M facility expansion in Nova Scotia to produce tires for electric vehicles.
- Michelin will receive a tax credit of about $61.3 million over five years for the project.
- The project will also receive up to $44.3 million in federal funding .
The Whole Story:
Michelin, one of Nova Scotia’s largest employers, is moving forward with a major expansion of its manufacturing facility in Bridgewater with the help of a recently enhanced provincial tax credit.
“Nova Scotia is an amazing place to do business and Michelin’s decision to modernize and expand its operations here speaks volumes about our business environment,” said Premier Tim Houston. “Michelin’s strong commitment to greening their operations aligns with our government’s plan for a clean and green economy, where the environment and Nova Scotians can thrive, and no one is left behind.”
Michelin will modernize and expand its operation in Bridgewater, enabling the plant to produce energy efficent tires for the electric vehicle market and larger rim size tires.
In October, the province expanded the Capital Investment Tax Credit. The tax credit rate increased from 15 to 25 per cent, the cap from $30 million to $100 million for all applicants and extended the time period from 2025 to 2029.
Michelin will receive a tax credit of about $61.3 million over five years based on eligible capital investments of $302.7 million to be used in Nova Scotia.
The Government of Canada, through the Strategic Innovation Fund, is also contributing up to $44.3 million in federal funding toward Michelin’s expansion, pending a final agreement.
“Companies understand the excellence of Canada’s workers and auto sector – and today’s announcement is a testament to that,” said Prime Minister Justin Trudeau. “Here in Nova Scotia, we are once again seeing that when we invest in our workers, we build communities and an economy that works for everyone, while leaving a stronger, healthier future for our kids.”
The Capital Investment Tax Credit is a refundable corporate income tax credit that provides credit for capital costs of new equipment used primarily in manufacturing or processing goods for sale or lease, farming or fishing, logging, storing grain or harvesting peat.
Michelin employs more than 3,600 Nova Scotians at their manufacturing plants in Bridgewater, Lunenburg Co., Waterville, Kings Co. and Granton, Pictou Co.
