Released on April 11, 2022
Legislation to enhance the Saskatchewan Value-added Agriculture Incentive (SVAI) tax rebates and regulations to increase the Saskatchewan Technology Start-up Incentive (STSI) tax credit cap were introduced today, changes aimed at attracting major investment to Saskatchewan.
"The SVAI has helped incent global corporations to undertake major projects in Saskatchewan," Deputy Premier and Finance Minister Donna Harpauer said. "These corporations are investing billions, creating construction and permanent jobs, and establishing Saskatchewan's leadership in value-added agriculture.
"In 2021, a record $17.5 billion in agri-food exports from Saskatchewan helped feed the world. Enhancements to the SVAI will make Saskatchewan even more competitive and effective in attracting investment to grow the industry and our province's economy."
The SVAI is a non-transferable 15 per cent tax rebate on capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan.
The Income Tax Act Amendment Act, 2022 increases the credit from 15 per cent to 30 per cent for the portion of a project between $400-$600 million in value, and from 15 per cent to 40 per cent on the portion of the project that is more than $600 million in value.
The legislation caps the dollar value of the SVAI credit at $250 million, meaning no single project can be eligible for more than that amount of SVAI tax relief.
Regulations for the Saskatchewan Technology Start-up Incentive (STSI) have been amended.
"The STSI has been a key part of our Government's commitment to drive growth in the technology sector," Harpauer said. "Since launching in 2018, the program has attracted over $45 million of investment into 46 early-stage companies from over 230 angel investors."
The STSI encourages investment in early-stage technology start-ups that develop new products and create jobs. The program offers a non-refundable 45 per cent tax credit to Saskatchewan-based investors who invest in eligible technology start-up businesses.
Last year, the STSI was extended for five years. This year, through amendments to The Saskatchewan Technology Start-up Incentive Regulations, the annual STSI tax credit cap is increasing from $2.5 million to $3.5 million.
For more information, contact:Jeff Welke