Manufacturing & Processing Investment Tax Credit Saskatchewan

This tax credit provides financial relief to eligible manufacturing and processing corporations through specific credit mechanisms. The modalities are structured to accommodate both new and used equipment acquisitions.

• Tax credit claims for new equipment are administered through the completion of Schedule 402 and filed with the T2 Corporate Income Tax Return.
• Tax credit claims for used equipment require a separate application submitted to the Ministry of Finance, including purchase invoices and verification of PST payments.
• The tax credits are applicable only if PST has been paid on the qualifying equipment.

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.

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.