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Saskatchewan Value-added Agriculture Incentive

The Saskatchewan Value-added Agriculture Incentive (SVAI) is a non-transferable 15% tax rebate on capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan.

Companies apply the benefit against corporate income tax (CIT) paid and are able to claim the benefit 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.

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1. Benefits

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 benefit against CIT paid and are able to claim the benefit over a three- to 10-year period. Redemption of the benefits is limited to 20% in year one after the facility enters operation, 30% in year two, and 50% 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 15% 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.

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2. Eligibility

  1. 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.

  2. In order to qualify for the incentive, applicants will be required to provide certification from an independently qualified third party confirming that the eligible capital expenditures resulted in an increase in productive capacity. As long as all requirements are met, the Ministry of Trade and Export Development will issue an SVAI Eligibility Certificate. The tax refund can be claimed by submitting the SVAI Eligibility Certificate to the Ministry of Finance, along with the corresponding T2 taxation information.

  3. Redemption of the benefits is limited to 20% in year one after the facility enters operation, 30% in year two, and 50% in year three. Remaining amounts can be carried forward for up to 10 years, following the taxation year in which a Certificate of Eligibility is issued.

The program is effective as of September 1, 2017, to accommodate projects that have been recently initiated.

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3. How To Apply

  1. 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 svai@gov.sk.ca
     
  2. If your application meets the preliminary eligibility requirements, you will receive a letter conditionally approving the investment project.

  3. Following completion of the investment project, submit the SVAI – Request for Certificate of Eligibility and required attachments.

  4. 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.

  5. Following the taxation year that the Certificate of Eligibility is issued, the applicant has 10 years to claim the SVAI.

  6. 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;
    • 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 that the rebate is claimed.

    7. 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.
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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 svai@gov.sk.ca

For information on the SVAI Claim Form, contact the Ministry of Finance at:

Phone: 1-800-667-6102 or 306-787-6645
Email: sasktaxinfo@gov.sk.ca


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