BUSINESS INCENTIVES

There are a variety of incentives to help grow your company in Saskatoon.

BUSINESS DEVELOPMENT INCENTIVES

Administered by SREDA, the Business Development Incentives is a tax abatement initiative that can include exemptions or reductions of any city tax or fee waiving of utility deposits and down payments on land; and exemptions or reductions of prepaid servicing levies. The incentive was established to encourage the attraction and expansion of businesses to facilitate investment and long-term job creation.

VACANT LOT AND ADAPTIVE RE-USE INCENTIVE PROGRAM

The Vacant Lot and Adaptive Re-use Incentive Program is designed to encourage development on existing vacant or brownfield sites, and the reuse of vacant buildings in established buildings in the city by providing financial and/or tax-based incentives to owners of eligible properties.

INDUSTRIAL LAND INCENTIVES PROGRAM

Through the Industrial Land Incentives Program, the cost of land can be deferred by offering a long-term lease at a 10-year locked-in rate based on the City of Saskatoon’s cost of borrowing plus 1%. There is also an option to purchase the land at the market value at the time of the lease agreement.

TECHNOLOGY & RESEARCH

SASKATCHEWAN TECHNOLOGY START-UP INCENTIVE

The Saskatchewan Technology Start-Up Incentive (STSI) is designed to encourage investment in early-stage technology startups that bring new products to market and create jobs in Saskatchewan. The program offers a non-refundable 45% tax credit to Saskatchewan-based investors who invest in Eligible Technology Startup Businesses (ESBs).

SASKATCHEWAN RESEARCH AND DEVELOPMENT TAX CREDIT

The Saskatchewan Research and Development (R&D) Tax Credit encourages innovative research and development activity in Saskatchewan. The 10% income tax credit is refundable on the first million dollars of annual eligible expenditures for Saskatchewan Canadian-controlled private corporations.

SASKATCHEWAN COMMERCIAL INNOVATION INCENTIVE

The Saskatchewan Commercial Innovation Incentive (ICII) is a new growth tax incentive that offers eligible corporations a reduction of the provincial Corporate Income Tax (CIT) rate to 6%, for a period of 10 years. A first of its kind in North America “patent box” style tax incentive, the SCII program is open to a wide variety of eligible intellectual property (IP) types, including patents, plant breeders’ rights, trade secrets and copyrights (computer programs and algorithms).

The Saskatchewan Technology Fund is a funding program designed to support industry-driven technology, innovation, and improvement projects that lead to the mitigation, sequestration or capture of greenhouse gases (GHGs).

MANUFACTURING INCENTIVES

MANUFACTURING AND PROCESSING PROFITS TAX REDUCTION

The Manufacturing and Processing Profits Tax Reduction, reduces the Saskatchewan Corporation Income Tax (CIT) rate by as much as 2% points on Canadian manufacturing and processing profits, as reported on the federal T2 CIT return. Saskatchewan-based firms with a high allocation of income to Saskatchewan will receive a larger tax reduction than firms with a low allocation of income.

MANUFACTURING AND PROCESSING INVESTMENT TAX CREDIT

The Saskatchewan Investment Tax Credit (ITC) for Manufacturing and Processing (M&P) is available to manufacturing and processing corporations filing a T2 CIT return with some allocation of taxable income to Saskatchewan. This is a refundable tax credit designed to encourage plant and equipment investment for M&P activities in Saskatchewan.

MANUFACTURING AND PROCESSING EXPORTER TAX INCENTIVE

The Manufacturing and Processing (M&P) Exporter Tax Incentives provide non-refundable tax credits to eligible corporations that expand the number of M&P-related full-time employees above the number that were employed in 2014.

The M&P Exporter Tax Incentive will also provide non-refundable tax credits to eligible corporations that expand the number of their full-time employees who primarily conduct activities that are typically considered to be “head office” functions. This portion of the incentive will offer an eligible business non-refundable tax credits equal to $10,000 in respect of each incremental full-time “head office” employee for each of the 2015 through 2022 taxation years.

CORPORATION INCOME TAX REBATE FOR PRIMARY STEEL PRODUCTION

The Corporation Income Tax Rebate for Primary Steel Production provides a tax incentive for eligibility primary steel producers that make a minimum capital investment of $100 million in new or expanded productive capacity.

AGRICULTURE & AGRI-VALUE INCENTIVES

AGTECH GROWTH FUND

The Agtech Growth Fund (AGF) is a research and development (R&D) funding program designed to accelerate the commercialization of game-changing technological innovations in the province’s agricultural sector.

AGRICULTURE DEVELOPMENT FUND

The Agriculture Development Fund supports the growth of the agriculture industry in Saskatchewan by providing $15 million in ADF funding annually for public and private researchers to help develop solutions to emerging problems that constrain production and value-added processing.

PRODUCT DEVELOPMENT PROGRAM

The Product Development Program provides funding for prototype and product development services to food, beverage and other agri-processing value-added companies. The client will work with the Food Centre to determine which service provider is most appropriate to provide the prototype and product development services.

SASKATCHEWAN LEAN IMPROVEMENTS IN MANUFACTURING

The Saskatchewan Lean Improvements in Manufacturing (SLIM) program provides funding assistance to agribusinesses for adoption of best practices, new technologies and state-of-the-art processes that stimulate improvements in productivity and efficiency.

SASKATCHEWAN VALUE-ADDED AGRICULTURE INCENTIVE

The Saskatchewan Value-Added Agriculture Incentive (SVAI) program offers non-refundable tax credits on capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan.

MINING & ENERGY INCENTIVES

CRITICAL MINERALS PROCESSING INVESTMENT INCENTIVE (CMPII)

The Critical Mineral Processing Investment Incentive (CMPII) offers transferable Crown royalty/freehold production tax credits for qualified greenfield or brownfield value-added processing projects at a rate of 15 per cent of eligible program costs. The CMPII is open to value-added processing projects across all segments of Saskatchewan’s aluminum, cobalt, copper, gallium, helium*, lithium*, magnesium, nickel, rare earth elements and zinc industries.

OIL AND GAS PROCESSING INVESTMENT INCENTIVE

The Oil and Gas Processing Investment Incentive (OGPII) offers transferable oil and gas royalty/freehold production tax credits for qualified innovation commercialization projects at a rate of 25 per cent of eligible project costs.

OIL INFRASTRUCTURE INVESTMENT INCENTIVE

The Oil Infrastructure Investment Program (OIIP)offers transferable oil and gas royalty/freehold production tax credits for qualified projects at a rate of 20 per cent of eligible project costs.

SASKATCHEWAN CRITICAL MINERALS INNOVATION INCENTIVE (SCMII)

The Saskatchewan Critical Minerals Innovation Incentive (SCMII) offers transferable Crown royalty/freehold production tax credits for qualified innovation commercialization projects at a rate of 25 per cent of eligible projects costs. The SCMII targets a broad range of innovations deployed across all segments of Saskatchewan’s aluminum, cobalt, copper, gallium, helium*, lithium*, magnesium, nickel, rare earth elements and zinc industries.

SASKATCHEWAN MINERAL EXPLORATION TAX CREDIT

Saskatchewan residents can invest in mineral exploration activities within the province by purchasing eligible flow-through shares issued by approved mineral exploration companies under the Saskatchewan Mineral Exploration Tax Credit (SMETC) program. The tax credit is 25 per cent (10 per cent provincial and 15 per cent federal).

SASKATCHEWAN PETROLEUM INNOVATION INCENTIVE

The Saskatchewan Petroleum Innovation Incentive (SPII) is intended to encourage research, development, and demonstration of new technologies that facilitate the expanded production of Saskatchewan’s oil and natural gas resources.

TARGETED MINERAL EXPLORATION INCENTIVE

The Targeted Mineral Exploration Incentive (TMEI) supports the diversification of Saskatchewan’s mineral sector by encouraging exploration for base metals, precious metals, and diamonds. Other components of the strategy include the provision of new airborne geophysical data and complementary ground-based geoscience investigations.


Business in Saskatoon

Saskatoon’s mix of economic diversity, low business costs and high quality of life make it the perfect place for businesses and people to thrive.

Life in Saskatoon

From a low cost of living and short commute times, to great schools and endless entertainment options, there’s no better place to work and play.

Business in Saskatoon

Saskatoon’s mix of economic diversity, low business costs and high quality of life make it the perfect place for businesses and people to thrive.

Life in Saskatoon

From a low cost of living and short commute times, to great schools and endless entertainment options, there’s no better place to work and play.