TAX INCENTIVES

Saskatchewan Commercial Innovation Incentive (SCII):  Tax incentive that offers eligible corporations a reduction of the provincial Corporate Income Tax (CIT) rate to 6%, for a period of 10 consecutive years for utilizing qualifying intellectual property in the province. Companies can extend the CIT benefit period to 15 years if 50% or more of the related research and development (R&D) has been conducted in Saskatchewan. SCII applicants can either own or hold a recognized license for their qualifying IP/good(s), service(s), and processes.‍

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Saskatchewan Value-Added Agriculture Incentive (SVAI):  Non-refundable and non-transferable tax credit for new or existing value-added agriculture facilities that make a minimum capital investment of $10 million to expand productive capacity. The tax credit uses a graduated structure for rebates, equal to 15% on expenditures up to $400 million, 30% on expenditures between $400 million and $600 million, and 40% on expenditures exceeding $600 million. A single project can claim up to $250 million in total incentives through the program. Companies may claim the credit over a three- to ten-year period once the facility is in operation.‍

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Manufacturing and Processing Profits Tax Reduction:  The Manufacturing and Processing Profits Tax Reduction reduces the provincial corporate income tax rate by as much as two percentage points on Canadian manufacturing and processing profits. ‍

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Manufacturing and Processing Investment Tax Credit: Refundable tax credit designed to encourage plant and equipment investment for M&P activities in Saskatchewan. The tax credit is equal to 6% of the total capital cost of the asset.‍

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Manufacturing and Processing Exporter Tax Incentive: Provides non-refundable tax credits to eligible businesses that expand the number of their full-time manufacturing employees above the number that was employed in 2014. The incentive will provide $3,000 in non-refundable tax credits for each incremental full-time employee for the 2015 through 2022 taxation years. Tax credits are applied against Saskatchewan corporate income tax and unused amounts can be carried forward for up to 5 years. Additional credits of $10,000 per employee can be awarded for full-time headquarters employees maintained over the same time period. Eligible businesses must derive at least 25% of their revenues from the export of their manufactured goods to the rest of Canada or internationally. ‍

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Research and Development (R&D) Tax Credit:  Partially refundable tax credit for R&D activities in Saskatchewan. The 10% income tax credit is refundable on the first million dollars of annual eligible expenditures for Saskatchewan Canadian-controlled private corporations. In all other cases, the credit is nonrefundable and can be applied against Saskatchewan CIT owed in the subsequent ten years (or the previous three taxation years). The total of refundable and non-refundable R&D Tax Credits that may be claimed by a corporation is limited to $1 million per year.‍

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Municipal Property Tax Abatement:  Legislation allows Saskatchewan municipalities to offer discretionary five-year property tax abatements. Municipal tax abatements and other incentives are managed by individual municipalities.

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Last Updated: July 2023