The Corporation Income Tax Rebate for Primary Steel Production provides a tax incentive for eligible primary steel producers that make a minimum capital investment of $100 million in new or expanded productive capacity.
An eligible primary steel producer is a company that:
- smelts and refines metals to produce steel in ingot or molten form;
- then rolls, draws or casts that steel into sheet, strip or other form at a production facility in Saskatchewan.
The tax incentive for each year of a five-year rebate period will be based on the incremental Saskatchewan Corporation Income Tax payable by the corporation as a result of the new investment.
The tax incentive rebate schedule is as follows:
- 100% of the incremental tax for each of the first two years of the rebate period;
- 75% of the incremental tax for the third year of the rebate period;
- 50% of the incremental tax for the fourth year of the rebate period;
- and 25% of the incremental tax for the fifth year of the rebate period.