Saskatchewan Value-added Agriculture Incentive
Highlights
This program is designed for businesses like yours that are involved in value-added agriculture. It offers a non-refundable, non-transferable tax credit on capital expenditures of $10 million or more for new or expanded facilities. This means you can significantly reduce your corporate income tax (CIT) over a period of three to ten years, making your investment more affordable.
Key Benefits:
- 15% tax credit on expenditures up to $400 million
- 30% tax credit on expenditures between $400 million and $600 million
- 40% tax credit on expenditures exceeding $600 million
By participating, you can claim up to $250 million in total incentives, which can be applied against your CIT. This program is more advantageous than other financing options because it allows you to claim other eligible tax incentives or grants without affecting your eligibility. Approval is straightforward if your project meets the criteria, and the tax credits can be carried forward for up to ten years, providing long-term financial benefits.
Financing Details
Type of Financing: Tax Credit
Repayment Terms and Interest Rates:
- This is a non-refundable, non-transferable tax credit.
- The credit can be claimed over a three- to 10-year period.
- Redemption is limited to:
- 20% in year one
- 30% in year two
- 50% in year three
- Remaining amounts can be carried forward for up to 10 years.
Eligible Expenses:
- Capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities.
- Examples include expenditures for pea protein processors, oat milling operations, malt producers, and cannabis oil processing facilities.
Ineligible Uses:
- Funds cannot be used for facilities solely dedicated to cleaning, bagging, handling, and/or storing of primary products.
Fees:
- No fees are associated with applying for or claiming this tax credit.
Qualifications
- Must be a new or existing value-added agricultural facility.
- Must have $10 million in new capital expenditures.
- Expenditures must be made for the purpose of increasing productive capacity.
- Must meet the program's definition of value-added agriculture activity.
- Must provide certification from a qualified third party confirming that the eligible capital expenditures resulted in an increase in productive capacity.
Must be located in Saskatchewan.
Disqualifications:
- Facilities solely dedicated to cleaning, bagging, handling, and/or storing of primary products.
Description
This program offers a non-refundable tax credit for capital expenditures of $10 million or more on new or expanded value-added agriculture facilities in Saskatchewan.
You can receive:
- 15% tax credit on expenditures up to $400 million.
- 30% tax credit on expenditures between $400 million and $600 million.
- 40% tax credit on expenditures exceeding $600 million.
The maximum incentive for any single project is $250 million. You can apply this credit against your corporate income tax over a period of three to ten years once your new or expanded facility is operational.
This tax credit helps reduce the amount of tax you pay, making it easier to invest in your business. You can also claim other eligible tax incentives or grants without affecting your eligibility for this program. This means more financial support for your business growth.
Program Steps
Prepare Application for Conditional Approval:
- Complete the SVAI – Application for Conditional Approval.
- Refer to the SVAI – Program Overview and Application Instructions if you have questions.
- Submit the application to [email protected].
Receive Conditional Approval:
- If your application meets preliminary eligibility requirements, you will receive a letter conditionally approving the investment project.
Complete Investment Project:
- Proceed with the construction or expansion of your value-added agriculture facility.
- Ensure all capital expenditures are documented and meet the program's criteria.
Prepare Required Documentation:
- Gather the following documents:
- Certification from a qualified third party confirming that the eligible capital expenditures resulted in an increase in productive capacity.
- SVAI – Request for Certificate of Eligibility.
- Any additional required attachments as specified in the application instructions.
- Gather the following documents:
Submit Request for Certificate of Eligibility:
- Submit the SVAI – Request for Certificate of Eligibility along with the required documentation to the Ministry of Trade and Export Development.
Receive Certificate of Eligibility:
- If the corporation meets the program requirements, you will receive a SVAI Certificate of Eligibility stating the eligible capital expenditures to claim.
Initiate Rebate Period:
- File the T2 Corporate Income Tax (CIT) return with the Canada Revenue Agency (CRA).
- Once the CIT return is assessed and you receive a T2 Notice of Assessment, complete the SVAI Claim Form.
Submit Claim Form:
- Submit the SVAI Claim Form to the Ministry of Finance, including:
- The SVAI Certificate of Eligibility.
- Current year Notice of Assessment or Reassessment from the CRA.
- Submit the SVAI Claim Form to the Ministry of Finance, including:
Receive Rebate:
- The Ministry of Finance will verify the Claim Form and provide:
- A rebate calculated in accordance with the program legislation.
- Or a written notice indicating that the corporation is not entitled to the rebate and the reasons for the determination.
- The Ministry of Finance will verify the Claim Form and provide:
Repeat Annually:
- Submit a claim form for each year that the rebate is claimed, ensuring all documentation is up-to-date and accurate.