Saskatchewan Technology Startup Incentive
Highlights
The Saskatchewan Technology Startup Incentive (STSI) program is designed specifically for businesses like yours. It offers a 45% non-refundable tax credit to investors who support early-stage technology startups. This means you can attract more investment to grow your business and bring new products to market.
Why should you apply?
- Significant Investment Potential: Raise up to $2 million in equity capital.
- Attractive to Investors: Investors can earn up to $225,000 in tax credits per annual investment.
- Extended Claim Period: Tax credits for investments made after January 1, 2021, can be claimed over a 7-year period.
What's in it for you?
- Increased Funding: More capital to develop and commercialize your innovative technologies.
- Job Creation: Expand your team and create more jobs in Saskatchewan.
- First-Come, First-Served: Secure your spot early to maximize benefits.
Qualifying for this program is straightforward, and the application process is user-friendly. By participating, you can significantly enhance your business's financial health and growth prospects.
Financing Details
Type of Financing: Tax Credit
Repayment Term and Interest Rates:
- This program offers a non-refundable 45% tax credit to Saskatchewan-based investors.
- There are no repayment terms or interest rates as it is a tax credit.
Eligible Expenses:
- Investment in early-stage technology startups.
- Funds can be used for research, development, and commercialization of novel innovations in digital or clean technologies.
Use of Funds:
- Funds cannot be used for:
- Crop development
- Agricultural processing for human or animal consumption
- Food and beverage development or manufacturing
- Synthetic or biological stimulants
- Power generation
- Biomedical technologies
Fees:
- There are no fees associated with applying for or receiving the tax credit.
Qualifications
- Must have fewer than 50 employees, including full-time, part-time, and contract workers.
- At least 50% of employees must be based in Saskatchewan.
- Must have its head office in Saskatchewan and be registered to carry on business in the province.
- Must not have previously raised more than $5 million in equity capital.
- Must be substantially engaged in the research, development, and commercialization of novel innovations in digital or clean technologies.
- Digital technology must involve electronics, software, computers, artificial intelligence, or similar information/data systems.
Clean technology must increase energy efficiency and conservation, reduce greenhouse gas emissions, or reduce the net environmental impacts of existing industrial processes.
Disqualifications:
- Businesses developing clean technologies in the following areas:
- Crop development
- Agricultural processing for human or animal consumption
- Food and beverage development or manufacturing
- Synthetic or biological stimulants
- Power generation
- Biomedical technologies
- Businesses developing clean technologies in the following areas:
Description
This program is designed to support your business by encouraging investment in early-stage technology startups. You can receive a non-refundable 45% tax credit if you invest in eligible technology startup businesses (ESBs) in Saskatchewan. This means that for every dollar you invest, you can get 45 cents back as a tax credit.
Your business can raise up to $2 million under this program, with a maximum of $1 million raised before April 1, 2021. Investors can earn up to $225,000 in tax credits per year and claim a maximum of $140,000 per tax year. Investments made after January 1, 2021, can be claimed over a 7-year period.
This program is a great opportunity for your business to attract investment and grow. By participating, you can bring new products to market and create jobs in Saskatchewan, all while benefiting from significant tax incentives.
Program Steps
Create a User Account:
- Go to the Online Application Portal.
- Create a user account.
Select the Appropriate Application:
- Once your account is created, navigate to the STSI Forms Page.
- Select the application that best suits your business.
Prepare Documentation:
- Gather necessary documents, including:
- Business registration details.
- Financial statements.
- Business plan.
- Proof of Saskatchewan-based operations.
- Employee details (number and location).
- Gather necessary documents, including:
Complete the Application:
- Fill out the selected application form.
- Ensure all information is accurate and complete.
Submit the Application:
- Submit the completed application through the Online Application Portal.
- You will receive an email confirmation upon successful submission.
Await Evaluation:
- Your application will be evaluated to ensure it meets the eligibility criteria.
- Processing times are typically 3 to 4 weeks for startup applications.
Receive Notification:
- If your application is approved, you will receive a Certificate/Notification of Eligibility from Innovation Saskatchewan.
Seek Investment:
- With your Certificate of Eligibility, seek investment from Eligible Investors.
Submit Tax Credit Certificate Application:
- Once an investment is finalized, submit a Tax Credit Certificate Application on behalf of your investors.
- This application can be accessed on the STSI Forms Page.
Submit Annual Return:
- After raising/making an investment, submit an Annual Return within 6 months of your fiscal year end.
- Annual Returns can be accessed and submitted via email to [email protected].