Tax Credits & Business Development Incentives

Tax Credits & Business Development Incentives:

In the southeast Saskatchewan region there are several levels of tax credits and development incentives, federal, provincial and municipal, available to assist established companies in growth and expansion, welcome new companies to set up new operations, and assist the independent homeowner/builder. The following is a sample, but by no means an extensive list of programs available.

 

Municipal

Information currently available on municipal economic development incentives in southeast Saskatchewan includes:

Provincial

  • Agriculture Development Fund - The Agriculture Development Fund supports research and development. Funding is provided to agriculture and agri-food research and development projects that help the Ministry of Agriculture to achieve its strategic goals, and support the development of an innovative, diversified, and value-added economy for Saskatchewan.

  • Corporation Capital Tax Exemption of up to $5,000,000 is available for fiscal years beginning on or after January 1, 2002 based upon the proportion of total salaries and wages that are paid in Saskatchewan by a taxable corporation and its associated corporations.

  • FCC AgriSpirit Fund is designed to improve the quality of life in rural communities. Projects funded in the past have included hospitals and medical centres, childcare facilities, fire and rescue equipment, playgrounds, food banks, libraries, recreation centres and community gardens. The next intake of applications is May 2011.

  • Film Employment Tax Credit - This tax incentive helps create new employment opportunities for Saskatchewan residents involved in this industry.

  • Manufacturing & Processing Investment Tax Credit - Information on the non-refundable income tax credit designed to encourage plant and equipment investment in Saskatchewan.

  • Manufacturing & Processing Profits Tax Reduction - Saskatchewan-based manufacturing and processing firms with a high allocation of income to Saskatchewan will receive a significant reduction in their corporate income tax rate.

  • Mineral Exploration Tax Credit offers a non-refundable 10 per cent tax credit to Saskatchewan taxpayers who invest in eligible flow-through shares issued by mining or exploration companies after March 31, 2009.

  • Mining Royalty and Tax Information furnishes a variety of information circulars pertaining to coal, metallic/industrial minerals, potash and uranium royalties and taxes in Saskatchewan.

  • Oil and Gas Industry Upstream Emission Reduction Initiative is a joint review between Saskatchewan Energy and Resources and industry to evaluate opportunities and develop technological innovations to reduce GHG emissions.

  • Oil and Gas Royalty Rates - In the spring of 2010 the provincial government introduced a reduction in to provide increased incentive for investment in oil exploration and horizontal drilling.

  • Petroleum Research Incentive is intended to encourage research, development and demonstration of new technologies that facilitate the expanded production of Saskatchewan's oil and natural gas resources.

  • Saskatchewan Carbon Dioxide EOR and Storage Initiative has been developed to prepare information required to assess the different barriers to implementing carbon dioxide EOR in oil fields in Saskatchewan evaluation and to jointly cost-share the design and implementation of new pilot projects in two or more Saskatchewan oil fields.

  • SaskBIO funding is in the form of a one-time repayable capital contribution to new and expanding eligible biofuel facilities. For program purposes, the scale of eligible Saskatchewan investment is set at a minimum of five per cent to a maximum of 20 per cent of the organization's share holdings. •Funding is available over a four year period from April 1, 2008 to March 31, 2012.

 

Federal

  • Canada Business Services for Entrepreneurs provides access to an on-line searchable Government grants, loans and financing database to assist businesses in finding resources and support tailored to specific needs.

  • Capital cost allowance (CCA) allows businesses to depreciate property such as a building, furniture, or equipment used in business or professional activities. As properties wear out or become obsolete over time, you can deduct their cost over a period of several years.

  • Canadian Film or Video Production Tax Credit is available to qualifying Canadian corporations who employ Canadians to produce films or television programs

  • Flow-through shares (FTSs) allow certain corporations in the mining, oil and gas, and renewable energy and energy conservation sectors may issue FTSs to help finance their exploration and project development activities.

  • Input Tax Credits (ITCs) As a GST/HST registrant, you may be eligible to recover the GST/HST you paid or owe on purchases and expenses related to your commercial activities. You can only claim ITCs to the extent that your purchases and expenses are for consumption, use, or supply in your commercial activities.

  • Natural Resources Canada offers several grants and incentives for industry promoting and incorporating efficient uses of energy into their operations

  • Research & Development Tax Credit - The Research and Development (R&D) Credit encourages R&D activity in Saskatchewan.

  • Scientific Research and Experimental Development (SR&ED) program is a federal tax incentive program, administered by the Canada Revenue Agency (CRA), that encourages Canadian businesses of all sizes, and in all sectors to conduct research and development (R&D) in Canada.

  • In 2009 the province introduced the Miscellaneous Statutes (Labour Mobility) Amendment. Part of a Pan-Canadian plan this initiative makes changes to professional regulatory legislation to ensure professional certification from other jurisdictions is recognized.

  • The province has recently entered into an agreement with Alberta and BC, the New West Partnership, designed to create Canada's largest interprovincial barrier-free trade and investment market and see the provinces work together to the benefit of workers, businesses and investors in all three provinces.

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