Saskatchewan Commercial Innovation Incentive (SCII)

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 for definitions of eligible cascading and forking.

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

1. 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:
   1. The proposed innovation has no equivalent in the Canadian marketplace or is an exceptional advance on the current state of the art in Canada;
      
      AND/OR
      
      
   2. 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.
2. Establish/identify an eligible corporation where the only sources of revenue are related to the commercialization of the qualifying intellectual property.
3. Once an eligible corporation successfully completes the SCII scientific and sole corporation eligibility process, the Ministry of Trade and Export Development will issue a SCII Eligibility 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.

1. Prepare and submit the SCII – Application for Scientific Eligibility. If you have questions about the application process, refer to the SCII – Program Overview and Application Instruction or contact scii@gov.sk.ca. The Ministry of Trade and Export Development will provide information to submit the application form and related content through a secure online platform.
2. If your company meets the scientific eligibility requirements, you will receive a letter approving the company's Scientific Eligibility from the Ministry of Trade and Export Development.
3. Establish/identify an eligible corporation whose only sources of revenue are related to the commercialization of the qualifying intellectual property.
4. If your corporation successfully completes the SCII scientific and sole corporation eligibility qualifying process, the Ministry of Trade and Export Development will provide you with a Certificate of Eligibility.
5. Your corporation can begin the 10- or 15-year program period in any taxation year. In a claim year, file your T2 corporation income tax return with the CRA. Once the CIT return has been assessed and a T2 Notice of Assessment from the CRA has been received, complete an SCII – Claim Form and submit it to the Ministry of Finance, including a copy of:
   • The SCII Certificate of Eligibility, as issued by the Ministry of Trade and Export Development;
   • Current year T2 Corporation Income Tax Return; and
   • Current year Notice of Assessment or Reassessment.
   A claim form will need to be submitted for each year of the 10- or 15-year program period.
6. The Ministry of Finance will verify the claim form and provide:
   • A rebate calculated in accordance with program legislation; or
   • A written notice indicating that the corporation is not entitled to the rebate and the reasons for the determination.
7. Corporations with ongoing IP development and expansion can apply to qualify new iterations of goods, services, and processes tied to the original qualifying IP without re-applying to the program. Prepare and submit a SCII – Notice of Cascading and Forking Form to the Ministry of Trade and Export Development, who will provide a letter qualifying or disqualifying the new iteration(s).

SCII – Program Overview and Application Instructions

SCII – Application for Scientific Eligibility

SCII – Sole Corporation Eligibility 

SCII – Notice of Cascading and Forking

SCII – Claim Form

SCII – Technical Assessor's Application Evaluation Form

For more information about the program, see SCII-Program Overview and Application Instructions, or contact the Ministry of Trade and Export Development at scii@gov.sk.ca.

For information on the SCII – Claim Form, contact the Ministry of Finance at:
Phone: 1-800-667-6102 or 306-787-6645
Email: sasktaxinfo@gov.sk.ca