Saskatchewan Value-added Agriculture Incentive
The Saskatchewan Value-added Agriculture Incentive (SVAI) is a non-refundable, non-transferable tax credit on capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan.
The SVAI utilizes a graduated tax credit structure for rebates, as follows:
- 15 per cent tax credit on expenditures up to 400M;
- 30 per cent tax credit on expenditures between $400M and $600M; and
- 40 per cent tax credit on expenditures exceeding $600M.
The total incentives to be claimed by any single project is $250M.
Companies apply the credit against corporate income tax (CIT) paid and are able to claim the credit over a three- to 10-year period once the new or expanded facility is brought into operation.
Value-added agriculture is defined as: The physical transformation or upgrading of any raw/primary agricultural product(s) or any agricultural byproduct or waste into a new or upgraded product. This definition excludes facilities solely dedicated to cleaning, bagging, handling and/or storing of primary products.
The SVAI is administered by the Ministry of Trade and Export Development.
The SVAI makes one of the world's top value-added agricultural investment environments even more attractive.
Upon the commissioning of a new or expanded facility, companies apply the tax credit against CIT paid and are able to claim the credit over a three- to 10-year period. Redemption of the credits are limited to 20 per cent in year one, 30 per cent in year two, and 50 per cent in year three, following the taxation year in which a Certificate of Eligibility is issued. Remaining amounts can be carried forward for up to 10 years.
In addition to reducing the tax paid based on a percentage of qualifying capital expenditures, eligible applicants will be entitled to claim any other eligible tax incentive or grant Saskatchewan may offer without impacting SVAI eligibility or impairing the ability to claim the SVAI tax credit.
- Qualifying projects include new and existing value-added agricultural facilities. To be eligible, the project must have $10 million in new capital expenditures, demonstrate the expenditures were made for the purposes of increasing productive capacity, and meet the program's definition of value-added agriculture activity. Potential examples include pea protein processors, oat milling operations, malt producers, and cannabis oil processing facilities.
- To qualify for the incentive, applicants will be required to provide certification from a qualified third party confirming that the eligible capital expenditures resulted in an increase in productive capacity. If all requirements are met, the Ministry of Trade and Export Development will issue a SVAI Certificate of Eligibility. The tax credit can be claimed by submitting the SVAI Claim Form and Certificate of Eligibility to the Ministry of Finance, along with the corresponding taxation information.
The program is effective as of September 1, 2017.
3. How to Apply
- Prepare and submit the SVAI – Application for Conditional Approval. If you have questions about the application process, refer to the SVAI – Program Overview and Application Instructions or contact email@example.com
- If your application meets the preliminary eligibility requirements, you will receive a letter conditionally approving the investment project.
- Following completion of the investment project, submit the SVAI – Request for Certificate of Eligibility and required attachments.
- If the corporation meets the program requirements, the Ministry of Trade and Export Development will provide you with a SVAI Certificate of Eligibility stating the eligible capital expenditures to claim.
- The taxation year that the Certificate of Eligibility is issued initiates the applicant's 10-year rebate period to claim the SVAI.
- To initiate the rebate period, file the T2 CIT with the Canada Revenue Agency (CRA). Once the CIT return has been assessed and a T2 Notice of Assessment from the CRA has been received, complete the SVAI Claim Form and submit it to the Ministry of Finance, including a copy of the:
- The SVAI Certificate of Eligibility, as issued by the Ministry of Trade and Export Development; and
- Current year Notice of Assessment or Reassessment.
A claim form will need to be submitted for each year that the rebate is claimed.
- The Ministry of Finance will verify the Claim Form and provide:
- A rebate calculated in accordance with the program legislation; or
- A written notice indicating that the corporation is not entitled to the rebate and the reasons for the determination.
4. Application Documents
5. Further Information
For more information about the program, see SVAI Program Overview and Application Instructions, or contact the Ministry of Trade and Export Development at firstname.lastname@example.org.
For information on the SVAI Claim Form, contact the Ministry of Finance at:
Phone: 1-800-667-6102 or 306-787-6645