Manufacturing & Processing Investment Tax Credit Saskatchewan
SK, Canada
Tax credit for manufacturing and processing in Saskatchewan
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Government of Saskatchewan
grant_single|status
grant_card_status|open
grant_single_labels|preview
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.
grant_single_labels|projects
Eligible projects for the Saskatchewan Manufacturing and Processing Investment Tax Credit involve purchasing new or used equipment for manufacturing and processing. For used equipment, it includes equipment on which PST has been paid.
- Purchasing new manufacturing and processing equipment.
- Purchasing used manufacturing and processing equipment with paid PST.
grant_single|admissibleProjectsExample
$12,000
Regina
Purchase of new 3D printing equipment for customized manufacturing solutions.
$9,000
Saskatoon
Upgrading used food processing equipment with verified PST payment.
$18,000
Moose Jaw
Acquisition of new milling machines for precision metal fabrication.
$6,000
Prince Albert
Purchase of used woodworking equipment with verified PST payment for custom furniture manufacturing.
$15,000
Lloydminster
Investment in new automated textile manufacturing equipment for increased production efficiency.
$7,200
Swift Current
Procurement of used brewing equipment with verified PST payment for local craft brewery.
grant_single_labels|admissibility
Eligibility criteria for the Saskatchewan Manufacturing and Processing Investment Tax Credit can be found in the Information Bulletin provided by Saskatchewan's Ministry of Finance.
- Corporations must be engaged in manufacturing and processing activities.
- For new equipment, the tax credit is administered by the Canada Revenue Agency on behalf of Saskatchewan.
- For used equipment, the corporation must purchase qualifying used M&P equipment on which PST has been paid.
grant_eligibility_criteria|who_can_apply
Eligibility for the Saskatchewan Manufacturing and Processing Investment Tax Credit is specified for manufacturing and processing corporations who purchase qualifying new or used equipment. These companies must ensure PST has been paid on all taxable items.
- Manufacturing corporations
- Processing corporations
grant_eligibility_criteria|eligible_expenses
Eligible expenses for this grant include the purchase of qualifying new and used Manufacturing and Processing equipment where PST has been paid. The expense must be supported by the necessary documentation as outlined below.
- Purchase invoices
- Financial statements
- T2 Corporation Income Tax Return
- Documentation verifying PST was paid on all taxable items
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is the province of Saskatchewan, Canada.
- Saskatchewan, Canada
grant_single_labels|register
- Step 1: Verify eligibility by reading the Saskatchewan Manufacturing and Processing Investment Tax Credit Information Bulletin thoroughly.
- Step 2: For new equipment, complete Schedule 402 and include it with the annual T2 Corporate Income Tax Return to be submitted to the Canada Revenue Agency.
- Step 3: For used equipment, complete the Manufacturing and Processing Investment Tax Credit on Used Equipment application.
- Step 4: Collect and prepare necessary documentation for used equipment application, including:
- Copies of purchase invoices;
- Financial statements;
- T2 Corporation Income Tax Return;
- Documentation verifying PST was paid on all taxable items.
- Step 5: Submit the used equipment application and necessary documentation to the Ministry of Finance, Revenue Division, Box 200, Regina SK S4P 2Z6.
grant_single_labels|otherInfo
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.
grant_single_labels|contact
SaskTaxInfo@gov.sk.ca
1-800-667-6102
Apply to this program
Saskatchewan Manufacturing and Processing Investment Tax Credit (ITC)
The Saskatchewan Manufacturing and Processing Investment Tax Credit (ITC) offers substantial tax incentives for both new and used equipment purchases by qualifying manufacturing and processing businesses in Saskatchewan. Administered by the Canada Revenue Agency and the Ministry of Finance, this initiative aims to bolster economic growth and productivity in the region.
Understanding the Saskatchewan Manufacturing and Processing Investment Tax Credit (ITC)
The Saskatchewan Manufacturing and Processing Investment Tax Credit (ITC) is a pivotal initiative designed to drive economic growth and improve the productivity of manufacturing and processing companies within the province. By offering tax credits on the purchase of new and used equipment, the ITC provides substantial financial relief to eligible businesses, enabling them to invest in necessary machinery and infrastructure without undue financial strain.
New Equipment
The ITC for new equipment is administered by the Canada Revenue Agency (CRA) on behalf of Saskatchewan. Eligible businesses can claim this credit by including a completed Schedule 402 with their annual T2 Corporate Income Tax Return. This streamlined process ensures that businesses can easily access the benefits they are entitled to without facing administrative hurdles.
Used Equipment
The ITC for used equipment, on the other hand, is administered by Saskatchewan's Ministry of Finance. It specifically targets manufacturing and processing corporations that purchase qualifying used equipment on which Provincial Sales Tax (PST) has been paid. To claim this credit, businesses need to complete a Manufacturing and Processing Investment Tax Credit on Used Equipment application and submit it along with the required documentation.
Eligibility Requirements
Eligibility for the ITC is contingent upon several factors. Businesses must be engaged in manufacturing or processing activities within Saskatchewan and must have incurred costs related to the purchase of new or qualifying used equipment. It is crucial for applicants to thoroughly read the Information Bulletin associated with the ITC to ensure they meet all eligibility criteria before submitting an application.
For the new equipment ITC, eligible corporations should include Schedule 402 with their annual T2 Corporate Income Tax Return. For used equipment, businesses must provide purchase invoices, financial statements, T2 Corporation Income Tax Returns, and documentation verifying PST was paid on all taxable items.
Application Process for New Equipment
To apply for the ITC on new equipment, businesses must follow these steps:
- Download Schedule 402 from the CRA website.
- Complete Schedule 402 with accurate and detailed information about the new equipment purchases.
- Submit the completed Schedule 402 along with the annual T2 Corporate Income Tax Return.
This straightforward process is designed to minimize the administrative burden on businesses, allowing them to focus on their core operations while still benefiting from the tax credit.
Application Process for Used Equipment
For businesses looking to claim the ITC on used equipment, the process involves the following steps:
- Download the Manufacturing and Processing Investment Tax Credit on Used Equipment application from the Saskatchewan Ministry of Finance website.
- Fill out the application form with accurate details about the used equipment purchases.
- Attach copies of purchase invoices, financial statements, T2 Corporation Income Tax Return, and documentation verifying that PST was paid on all taxable items.
- Submit the completed application and supporting documentation to:
- Ministry of Finance
- Revenue Division
- Box 200
- Regina SK S4P 2Z6
It is essential for businesses to ensure that all information submitted is accurate and complete to avoid delays or issues with their application.
Benefits of the ITC
The Saskatchewan Manufacturing and Processing Investment Tax Credit provides numerous benefits for eligible businesses, including:
- Financial Relief: By offering tax credits on equipment purchases, the ITC helps reduce the financial burden on businesses, enabling them to invest in essential infrastructure.
- Increased Productivity: Access to new and advanced equipment can significantly enhance a business's productivity and efficiency, leading to better output and competitiveness.
- Economic Growth: The ITC fosters economic growth in Saskatchewan by encouraging investments in the manufacturing and processing sectors, which are critical drivers of the province's economy.
- Job Creation: Investments in new and used equipment can lead to job creation as businesses expand their operations and require additional workforce to manage increased production.
Common Pitfalls and How to Avoid Them
Despite the numerous benefits, businesses sometimes face challenges when applying for the ITC. Common pitfalls include:
- Incomplete Documentation: Ensure that all required documents, such as purchase invoices and financial statements, are included with the application. Missing documentation can result in delays or rejection of the application.
- Incorrect Information: Double-check all information provided in the application forms to ensure accuracy. Incorrect or inconsistent information can lead to complications in the review process.
- Failure to Verify PST Payment: For the ITC on used equipment, it is crucial to provide documentation verifying that PST was paid on all taxable items. Failure to do so can result in the application being denied.
- Not Meeting Eligibility Criteria: Thoroughly read the Information Bulletin to ensure that the business meets all eligibility requirements before applying. Meeting the criteria is essential for a successful application.
Conclusion
The Saskatchewan Manufacturing and Processing Investment Tax Credit is a valuable opportunity for manufacturing and processing businesses in the province. By offering financial incentives on the purchase of new and used equipment, the ITC supports economic growth, enhances productivity, and encourages job creation. Businesses are encouraged to take advantage of this initiative by carefully reviewing the eligibility requirements and submitting accurate and complete applications.
For more information, businesses can contact the Inquiry Centre toll-free at 1-800-667-6102 or via email at SaskTaxInfo@gov.sk.ca. By leveraging the benefits of the ITC, businesses can contribute to the overall economic development of Saskatchewan while achieving their own growth and operational goals.