Released on August 11, 2017
The Saskatchewan Commercial Innovation Incentive (SCII), proclaimed the Government of Saskatchewan on June 30, 2017, is now accepting applications.
The SCII will support the commercialization of new and transformative innovations, by reducing the provincial Corporate Income Tax rate for eligible corporations to six per cent for a period of 10 years—on taxable income earned from the commercialization of a broad range of qualifying types of intellectual property in Saskatchewan. This includes patents, plant breeders’ rights, trade secrets and copyright (computer programs and algorithms). Eligible corporations will be able to extend the benefit period to 15 years if the majority of the related research and development has been conducted in the province.
“The Government of Saskatchewan has identified innovation as essential to the province’s future economic success,” Economy Minister Jeremy Harrison said. “This 'patent box' style incentive which is the first of its kind in North America will help create that success, by positioning Saskatchewan as a world-class destination for companies looking to bring new innovations to market, attracting entrepreneurial talent and promoting commercially-focused research and development activity.”
The incentive program is accessible to any company in the world operating in any sector, regardless where or when the research and development for the qualifying intellectual property occurred, or whether the company owns or licenses the technology. Qualification will be determined using criteria outlined in the program’s established scientific and economic eligibility tests.
The SCII is one of a number of innovation initiatives introduced as part of the 2017-18 provincial budget. Other initiatives include:
To learn more about the Saskatchewan Commercial Innovation Incentive or to apply to the program, visit the website at www.saskatchewan.ca/innovation-incentive.
- A commitment of $250,000 to support the operations of the province’s first technology incubator, Co.Labs;
- The reformed Saskatchewan Research and Development (R&D) Tax Credit which introduces a refundable 10 per cent R&D tax credit in respect of the first $1 million in annual qualifying expenditures incurred in Saskatchewan by Canadian-controlled private corporations.
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