Canada: Measure to enhance value-added agriculture incentive receives Royal Assent (Saskatchewan)

Saskatchewan's Bill 82 received Royal Assent

Saskatchewan's Bill 82 received Royal Assent

Saskatchewan's Bill 82, which includes a measure to enhance the value-added agriculture incentive, received Royal Assent (on 18 May 2022). These changes were announced in Saskatchewan's 2022 budget which was delivered on 23 March 2022. Read TaxNewsFlash

Background

Saskatchewan announced in its budget that it is enhancing the tax credit rate for the value-added agriculture incentive from 15% to 40%, depending on the level of investment. This credit applies 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 enhances 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 is retroactive to the origin of the program in 2018, and the maximum credit available for a single qualifying project is $250 million.

Read a June 2022 report prepared by the KPMG member firm in Canada

*$ = Canadian dollar

 

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