Biggins Lacy Shapiro & Company, LLC

Saskatchewan Economic Development Incentive and Financing Programs

TAX INCENTIVES 

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. 
 
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.
 
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 2019 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.
 
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 nonrefundable R&D Tax Credits that may be claimed by a corporation is limited to $1.0 million per year.
 
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.
 
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 per cent or greater 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.
 
 Updated June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com