Manufacturing & Processing Investment Tax Credit Saskatchewan
Highlights
This program is designed for businesses like yours, offering significant tax incentives on new and used manufacturing and processing equipment. Why should you apply? Because it can help you reduce costs and improve your bottom line.
Key Benefits:
- Tax Credits on New Equipment: Administered by the Canada Revenue Agency, these credits can be claimed with your annual T2 Corporate Income Tax Return.
- Tax Credits on Used Equipment: Available for all qualifying purchases where PST has been paid, making it easier to upgrade your machinery without breaking the bank.
What's in it for you?
- Cost Savings: Reduce your tax liability, freeing up capital for other business needs.
- Easy Application Process: Simply include the necessary documentation with your tax return.
- Improved Cash Flow: Lower taxes mean more money to reinvest in your business.
Applying is straightforward, and the benefits can significantly enhance your financial health. Take advantage of this opportunity to invest in your business's future.
Financing Details
Type of Financing: Tax Credit
Eligible Expenses:
- Purchase of qualifying new manufacturing and processing (M&P) equipment.
- Purchase of qualifying used M&P equipment on which Provincial Sales Tax (PST) has been paid.
Use of Funds:
- Funds can be used to offset the cost of new or used M&P equipment.
Restrictions:
- Funds cannot be used for non-qualifying equipment or expenses not related to manufacturing and processing.
Fees:
- No fees are associated with applying for this tax credit.
Qualifications
- Must be a manufacturing or processing corporation.
- Must purchase qualifying new or used manufacturing and processing equipment.
- Must have paid Provincial Sales Tax (PST) on all taxable items.
- Must include a completed Schedule 402 with the annual T2 Corporate Income Tax Return for new equipment.
- Must submit copies of purchase invoices, financial statements, T2 Corporation Income Tax Return, and documentation verifying PST was paid for used equipment.
Business must be operating in Saskatchewan.
Disqualifications:
- Businesses outside the manufacturing or processing sectors.
- Businesses that have not paid PST on taxable items.
- Businesses not operating in Saskatchewan.
Description
This program offers your business a valuable opportunity to receive tax credits on new and used equipment. By participating, you can reduce your tax burden and reinvest those savings back into your business.
For new equipment, you can claim a tax credit by including a completed Schedule 402 with your annual T2 Corporate Income Tax Return. This credit is managed by the Canada Revenue Agency on behalf of Saskatchewan.
For used equipment, the tax credit is available for all manufacturing and processing corporations that purchase qualifying used equipment and have paid the Provincial Sales Tax (PST). You can claim this credit by submitting an application along with purchase invoices, financial statements, and documentation verifying PST payment.
This program helps you save money on essential equipment purchases, allowing you to invest more in growing your business.
Program Steps
Download the Application Form: Visit the official website and download the Manufacturing and Processing Investment Tax Credit application form for used equipment.
Prepare Required Documentation: Gather the following documents:
- Copies of purchase invoices for the used equipment.
- Financial statements of your business.
- T2 Corporation Income Tax Return.
- Documentation verifying that PST was paid on all taxable items.
Complete the Application Form: Fill out the application form with accurate and detailed information about your business and the equipment purchased.
Attach Documentation: Ensure all the required documents are attached to your completed application form.
Submit the Application: Send the completed application form and all supporting documents to the Ministry of Finance, Revenue Division, at the following address:
Ministry of Finance Revenue Division Box 200 Regina SK S4P 2Z6
Await Confirmation: After submission, wait for confirmation from the Ministry of Finance regarding the status of your application.
Follow Up if Necessary: If you do not receive confirmation or have any questions, contact the Inquiry Centre at 1-800-667-6102 or email [email protected] for assistance.