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Government Introduces Legislation to Encourage Value-Added Agriculture Investment

Released on April 19, 2018

Today, Trade and Export Development Minister Jeremy Harrison introduced Bill 125, The Saskatchewan Value-Added Agriculture Incentive, for first reading in the Saskatchewan Legislature.

The new incentive, announced as part of the 2018-19 Budget, is designed to improve investment attraction and retention outcomes in the province’s value-added agriculture sector.  It offers a 15 per cent non-refundable tax credit for value-added agriculture facilities that make a significant capital investment to expand production capacity.

“Robust economic growth and new investment in key sectors is crucial to Saskatchewan’s people and their communities,” Harrison said.  “To accomplish this, we must continually find new ways to foster a competitive business environment in our province.”

Qualifying projects include new and existing value-added agricultural facilities.  To be eligible, a project must have $10 million in new capital expenditures, demonstrate that capital expenditures were made for the purposes of increasing productive capacity, and meet the definition of value-added agriculture.  Potential examples include pea protein processors, oat milling operations, malt producers, or cannabis oil processing facilities.

The incentive is designed to be used in addition to other existing incentives in Saskatchewan that a project could also qualify for.  Redemption of the benefits is limited to 20 per cent in year one after the facility enters operation, 30 per cent in year two, and 50 per cent in year three.  There will be a maximum carry-forward of 10 years on any remaining credit amount.

The program will begin accepting applications in mid to late 2018.


For more information, contact:

Deb Young
Trade and Export Development
Phone: 306-787-4765

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