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
This program does not specify particular eligible geographical areas, indicating that it may be available broadly within the region it serves. Businesses throughout Saskatchewan may potentially apply if they meet the other eligibility criteria.
grant_single|admissibleProjectsExample
$6,000
Purchase of used woodworking equipment with verified PST payment for custom furniture manufacturing
$15,000
Investment in new automated textile manufacturing equipment for increased production efficiency
$12,000
Purchase of new 3D printing equipment for customized manufacturing solutions
$18,000
Acquisition of new milling machines for precision metal fabrication
$7,200
Procurement of used brewing equipment with verified PST payment for local craft brewery
$9,000
Upgrading used food processing equipment with verified PST payment
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
The eligible expenses for the Manufacturing and Processing Investment Tax Credit for used equipment involve costs that qualify under specific conditions.
- Purchase invoices for qualifying used manufacturing and processing equipment.
- Documentation verifying PST was paid on all taxable items involved in the purchase.
grant_single_labels|register
- Step 1: Review Eligibility Criteria
- Read the Saskatchewan Manufacturing and Processing Investment Tax Credit Information Bulletin thoroughly.
- Step 2: 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.
- Step 3: 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.
- Step 4: Submit the Application
- Send the completed application for used equipment to:
- Ministry of Finance, Revenue Division, Box 200, Regina SK S4P 2Z6
- Send the completed application for used equipment to:
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
Maximizing Benefits from the Saskatchewan Manufacturing and Processing Tax Incentive
The government of Saskatchewan offers tax incentives aimed at supporting manufacturers and processors in acquiring both new and used equipment. This initiative focuses on promoting industrial growth, efficiency, and competitive advantage by easing the financial burden associated with capital investments.
Understanding the Saskatchewan Manufacturing and Processing Investment Tax Credit
The Saskatchewan Manufacturing and Processing (M&P) Investment Tax Credit (ITC) is an initiative strategically designed to elevate the competitiveness and productivity of manufacturers and processors within the province. It offers tax credits on both new and used M&P equipment, helping businesses balance their financial sheets while procuring critical machinery and tools that are essential for daily operations and long-term growth.For new equipment, the ITC is seamlessly integrated into the federal tax system and administered by the Canada Revenue Agency (CRA) in coordination with the Saskatchewan government. To claim this credit, eligible corporations must prepare a complete Schedule 402 and submit it alongside their annual T2 Corporate Income Tax Return, ensuring that all claims are aligned with provincial and federal tax legislations.On the other hand, the M&P ITC for used equipment allows businesses to leverage cost savings on previously owned assets. Administered directly by the Ministry of Finance, this tax credit requires businesses to thoroughly document their expenditures. To qualify, applicants must submit a detailed application accompanied by purchase invoices, audited financial statements, T2 Corporation Income Tax Return, and proof of PST payment on all taxable items.The initiative goes beyond simply offsetting equipment costs—it casts a wider economic net by encouraging investment in advanced technologies and sustainability practices within the manufacturing sector. By minimizing upfront capital expenditure through these credits, businesses can redirect resources towards innovation, expanding operations, and enhancing employee skills, which collectively contribute to building a vibrant economic landscape in Saskatchewan.Moreover, these credits provide strategic benefits that extend to improving the operational efficiency of businesses. Companies can upgrade their machinery to stay abreast of technological advancements, minimizing downtime and optimizing production output. This inevitably leads to better market positioning and enhanced competitiveness in both domestic and international markets.It is essential for potential applicants to conduct a meticulous review of their eligibility status as outlined in the Saskatchewan Manufacturing and Processing Investment Tax Credit Information Bulletin. Understanding the nuances of the program will not only facilitate a smoother application process but also maximize the credit benefits received.Participants who effectively utilize the ITC are likely to experience a ripple effect of positive outcomes, including increased capacity for innovation, improved quality of goods produced, and strengthened relationships with clients and suppliers. These enhancements position them to tackle challenges and seize opportunities within a rapidly evolving industrial ecosystem.In conclusion, the Saskatchewan Manufacturing and Processing ITC serves as a critical instrument in nurturing economic resilience and industrial growth. By reducing the financial barriers to acquiring vital equipment, it empowers businesses to thrive and evolve, ultimately aiding the province in achieving its broader economic objectives."
