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Apply for the Saskatchewan Commercial Innovation Incentive (Patent Box)

The Saskatchewan Commercial Innovation Incentive (SCII) lowers the provincial corporate income tax rate to six per cent for 10 consecutive years for eligible corporations that commercialize their qualifying intellectual property in Saskatchewan. Companies can extend the benefit period to 15 years if 50 per cent or more of the related research and development (R&D) in advance of commercialization has been conducted in Saskatchewan.

This new growth tax incentive is open to any company, operating in any sector, from anywhere in the world, regardless of where or when the R&D for the qualifying intellectual property occurred.

The first of its kind in North America, this patent box style incentive applies to a wide variety of intellectual property types, including patents, plant breeders’ rights, trade secrets and copyrights (computer programs and algorithms.)

The SCII is administered by the Saskatchewan Ministry of the Economy. The Industrial Research Assistance Program, a division of the National Research Council, will provide technical assessment services for the SCII application’s scientific eligibility evaluation.

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1. Benefits

The SCII helps to make Saskatchewan one of the best jurisdictions to commercialize exceptional intellectual property. Applicants may directly own the intellectual property or hold a recognized licence for the intellectual property and/or the related goods, services or processes. In addition to receiving a reduced corporate income tax rate of six per cent, eligible corporations will be entitled to: 

  • Choose when to begin the tax rebate period;
  • Claim any other eligible tax incentive or grant Saskatchewan may offer without impacting SCII eligibility or impairing the ability to claim the SCII tax rebate; and
  • Extend the SCII tax rebate terms to eligible cascading* or forking goods, services, and processes.
*See the SCII Program Overview and Application Instructions document for definitions of eligible cascading and forking.

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2. Eligibility

To qualify for the program, an applicant must meet the following requirements: 

a) Own or license qualifying intellectual property that is linked to the commercialization of new goods, services, or processes in Saskatchewan.  The qualifying IP/good(s), service(s), and process(es) must meet one of the following definitions:

i. The proposed innovation has as no equivalent in the Canadian marketplace or is an exceptional advance on the current state of the art in Canada; 

AND/OR,

ii. The proposed innovation has unique features and benefits that offer exceptional differentiation from current competitive offerings in the Canadian marketplace and is sufficiently unique that the potential exists to create a competitive advantage or create a new market niche.

b) Establish/identify an eligible corporation where the only sources of revenue are related to the commercialization of the qualifying intellectual property.

c) Demonstrate new economic benefits to Saskatchewan by meeting two of the five economic benchmarks (these can be accumulative over any period of time):

  • $3 million in R&D expenditures in Saskatchewan (including labour costs) – consisting of new R&D, existing R&D pertaining to the qualifying intellectual property, or a combination of new and existing R&D;
  • 10 net new full-time employees;               
  • $10 million in net new capital expenditures;
  • $3.5 million in new provincial CIT taxes paid; or
  • Optional: A proposed new economic benefit benchmark as pre-approved by the Ministry of the Economy.

d) Once the applicant/eligible corporation demonstrates the required new economic benefits to Saskatchewan, it will be issued an SCII Certificate. The corporation can then submit the SCII Certificate to the Ministry of Finance at a time of its choosing to begin claiming its 10 or 15-year corporate income tax rebate benefit period.


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3. How To Apply

To apply for the SCII program, companies need to prepare and submit the SCII - Application Form. If you have questions about the application process, refer to the SCII - Program Overview and Application Instructions or contact scii@gov.sk.ca. Once the application is ready to submit, the applicant notifies the Ministry of the Economy via scii@gov.sk.ca. The Ministry of the Economy will provide information to submit the application form and related content through a secure online platform.

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5. Further Information

For more information on the program, contact scii@gov.sk.ca

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