On April 10, 2018, Saskatchewan’s Minister of Finance, Donna Harpauer, presented Saskatchewan’s provincial budget for 2018-2019. The budget announces two new incentives for investments in the technology and agricultural sectors:
1. The Saskatchewan Technology Start-up Incentive
This two-year pilot program provides a 45 percent non-refundable tax credit to individual and corporate investors who invest in qualifying tech companies. Eligible small businesses are early stage technology startups that are developing new technologies, or applying existing technologies in a new way to create new proprietary products, services or processes that are repeatable and scalable. To be eligible, the business must also be incorporated and headquartered in Saskatchewan and have fewer than 50 employees, the majority of which are located in the Province.
The credit that can be claimed each year is capped at $140,000 per investor. Unused tax credits can be carried forward for four years after the eligible investment is made.
2. The Saskatchewan Value-added Agriculture Incentive
This incentive benefits businesses making a minimum capital investment of $10 million in an eligible project. To be eligible, projects must upgrade or transform raw or primary agricultural products. The incentive is provided through a non-refundable income tax credit equal to 15 percent of the eligible project’s qualifying capital investments.
These incentives seek to promote diversification and growth in Saskatchewan’s economy, and particularly in those targeted sectors where Saskatchewan is thriving. The tax incentives for investors are directed towards supporting investments, job creation and productivity in Saskatchewan, and have the potential to enhance Saskatchewan’s competitiveness in the technology and agricultural industries, and to encourage Saskatchewan to become a leader in these sectors.