Manufacturing & Processing Investment Tax Credit Saskatchewan
Overview
For purchases made on or after March 23, 2017, the tax credit is equal to 6% to encourage plant and equipment investment for use in manufacturing and processing in Saskatchewan.
At a glance
Funding available
- Renovate your business/factory
- No Condition
- Open continuously
Eligible candidates
- Manufacturing
- Saskatchewan
- For-profit business
- All revenue ranges
- All organization sizes
- All groups
Activities funded
This tax credit encourages investments in the Saskatchewan manufacturing and processing sectors. Eligible projects include the acquisition of new or used manufacturing and processing equipment.
- Purchasing new manufacturing and processing equipment to enhance production capabilities.
- Acquiring used manufacturing and processing equipment, with proof of PST payment, to expand or upgrade facilities.
Eligibility
Eligibility for this grant is based on specific criteria regarding the equipment and the corporation's compliance with related tax requirements.
- The applicant must be a manufacturing and processing corporation.
- The corporation must purchase qualifying new or used manufacturing and processing equipment.
- PST (Provincial Sales Tax) must have been paid on the qualifying used equipment.
Who is eligible?
The Saskatchewan Manufacturing and Processing Investment Tax Incentives are available to manufacturing and processing corporations in Saskatchewan, Canada, that purchase qualifying new or used equipment.
- Corporations must be involved in manufacturing or processing activities within Saskatchewan.
- For new equipment, the incentive can be claimed through Schedule 402 with the T2 Corporation Income Tax Return, as administered by the Canada Revenue Agency.
- For used equipment, corporations must demonstrate that Provincial Sales Tax (PST) has been paid on all taxable items.
- Applicants must include purchase invoices, financial statements, and tax documentation in their submissions.
Eligible expenses
The Manufacturing and Processing Investment Tax Credits support businesses in acquiring new or used manufacturing and processing equipment. The eligible activities relate to the purchase and claiming of tax credits on qualifying equipment.
- Purchase of qualifying new manufacturing and processing equipment.
- Purchase of qualifying used manufacturing and processing equipment, with PST paid.
- Completion of required tax credit applications and documentation, including Schedule 402 for new equipment.
Eligible geographic areas
This tax credit is specifically administered for companies operating within Saskatchewan. The geographical focus is intended to enhance regional manufacturing and processing capabilities.
- Businesses based in Saskatchewan, Canada.
How to apply
Review Eligibility Criteria
Prepare Required Documentation (Used Equipment)
- Gather copies of purchase invoices for the used equipment.
- Prepare financial statements.
- Ensure you have your T2 Corporation Income Tax Return ready.
- Collect documentation verifying that PST was paid on all taxable items.
Complete Application Forms
- For qualifying new equipment, ensure a completed Schedule 402 is included with the T2 return.
- For used equipment, complete the Manufacturing and Processing Investment Tax Credit on Used Equipment application form.
Submit the Application
- Send the completed application for used equipment to:
- Ministry of Finance, Revenue Division, Box 200, Regina SK S4P 2Z6
Additional information
The Saskatchewan Manufacturing and Processing Investment Tax Incentives offer tax credits for qualifying new and used equipment to support manufacturing and processing corporations in Saskatchewan.
- The tax incentive for new equipment is administered by the Canada Revenue Agency and requires a completed Schedule 402 with the annual T2 Corporate Income Tax Return.
- The tax incentive for used equipment requires invoices, financial statements, the T2 Corporate Income Tax Return, and PST verification; it is administered by the Ministry of Finance.
