Canada: Changes to corporate incentives (Saskatchewan)

Changes to corporate incentives in Saskatchewan reflect measures in the province’s 2022 budget

Corporate incentives in Saskatchewan reflect measures in the province’s 2022 budget

Changes to corporate incentives in Saskatchewan reflect measures in the province’s 2022 budget, as delivered on 23 March 2022.

  • Bill 82 includes a measure that would enhance the Saskatchewan value-added agriculture incentive.
  • Regulations would increase the province’s annual cap to the Saskatchewan technology start-up incentive, effective 1 April 2022. 

Background

The provincial budget announced an enhanced tax credit rate for the Saskatchewan value-added agriculture incentive to up to 40% (from 15%), depending on the level of investment. The credit would apply to capital expenditures valued at $10 million* or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan. Qualifying projects may include canola crush facilities, pea protein processors, oat milling operations, malt producing operations, and cannabis oil facilities. Specifically, the budget proposed to enhance the tax credit rate for the incentive at the following rates:

  • 15% on the portion of a project up to $400 million
  • 30% on the portion of a project between $400 million to $600 million
  • 40% on the portion of a project over $600 million

The enhanced tax credit rate would be retroactive to the origin of the program in 2018, and the maximum credit available for a single qualifying project would be $250 million.

Saskatchewan also announced an increase in the annual cap of the maximum value of the Saskatchewan technology start-up incentive tax credit to $3.5 million per year (from $2.5 million), effective 1 April 2022. This program offers a non-refundable 45% tax credit to individual, corporate or venture capital corporation investments in eligible start-up businesses that are developing new technologies, or applying existing technologies in a new way, to create qualifying new proprietary products, services or processes. In its 2021 budget, the province extended the Saskatchewan technology start-up incentive through 31 March 2026.

Read an April 2022 report prepared by the KPMG member firm in Canada

*$ = Canadian dollar

 

 

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