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Province Proclaims Saskatchewan Commercial Innovation Incentive Act

Released on June 30, 2017

The Government of Saskatchewan proclaimed the Saskatchewan Commercial Innovation Incentive (SCII) Act, on June 30, 2017.

Designed to support the commercialization of new and transformative innovations, the incentive program will reduce 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.

“This incentive will advance a number of provincial priorities in the Saskatchewan Plan for Growth, by creating new jobs and opportunities to secure foreign direct investment, and attracting entrepreneurial talent to our province,” Economy Minister Jeremy Harrison said.  “By bringing more commercialized intellectual property to local, national and international markets from the province, the SCII will be a strong promoter of Saskatchewan’s investment climate across all innovation sectors.”

As North America’s first of its kind “patent box” style incentive, the SCII will help position companies to take full advantage of their wealth of creative and leading research and development.  The 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 incentive’s established scientific and economic eligibility tests.

“Saskatchewan’s future economic success will increasingly depend on knowledge and innovation, and this program will support this success by promoting commercially-focused research and development activity here,” Harrison said.  “It will help make the province a strong innovation leader—for the benefit of all Saskatchewan people.”

The SCII is one of a number of innovation initiatives introduced as part of the 2017-18 provincial budget.
Other initiatives include:
  • A commitment of $250,000 to support the operations of the province’s first technology incubator, Co.Labs; and
  • 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.
Applications to the SCII will be available in August 2017.

To learn more about the program, view the factsheet at


For more information, contact:

Deb Young
Phone: 306-787-4765

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