Open
Saskatchewan Manufacturing and Processing Profits Tax Reduction
Income tax reduction for manufacturing and processing in Saskatchewan
Last Update: March 4, 2026
Funding available
Up to 2% of project cost
Timeline
- Open continuously
Location
Saskatchewan, Canada
Overview
Corporation income tax is reduced by as much as 2% on Canadian manufacturing and processing profits, as reported on the T2 CIT return.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Optimize production processes
Eligible Funding
- Up to 2% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Manufacturing
Location
- Saskatchewan
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
The Saskatchewan Manufacturing and Processing Profits Tax Reduction supports projects or activities that increase manufacturing and processing profitability through tax incentives. Eligible activities specifically relate to using equipment and expanding employment in export-oriented businesses.
- Reducing the income tax rate for corporations in the manufacturing and processing sectors operating in Saskatchewan.
- Applying tax reductions based on the allocation of income to Saskatchewan.
- Investment in new machinery and equipment for use in manufacturing and processing activities within Saskatchewan.
- Purchase of qualifying used manufacturing and processing equipment on which PST has been paid.
- Cutting taxes for businesses that increase their number of full-time employees in manufacturing and processing since 2014, focusing on exports.
Eligibility
Who is not eligible
This grant excludes certain companies and industries due to their status or main activity. The restrictions focus on ensuring that only those engaged in manufacturing and processing activities benefit from the grant.
- Farming companies.
- Fishing operations.
- Logging businesses.
- Construction firms.
- Oil and gas extraction and processing companies.
- Mineral extraction and processing activities.
- Corporations whose primary activity is not manufacturing and processing.
Eligible expenses
The grant covers eligible expenses related to purchasing new or used equipment for manufacturing and processing activities in Saskatchewan.
- Total capital cost of eligible building, machinery, and equipment purchases, including PST.
- Costs associated with new machinery and equipment, which have not been used or acquired for any other purpose before acquisition.
- Qualified property for the purposes of the ITC as defined in federal and provincial tax acts.
- Eligible purchases or leases of equipment available for use in Saskatchewan primarily for manufacturing and processing goods for sale or lease.
Eligible geographic areas
This grant specifically targets companies operating within the province of Saskatchewan. Eligibility and administration are managed according to the province's guidelines to support regional economic development.
- Companies operating within the province of Saskatchewan, Canada.
Additional information
Here are additional relevant details for this grant:
- The Investment Tax Credit (ITC) is refundable, allowing corporations to receive rebates if the ITC exceeds the Saskatchewan Corporate Income Tax liability for the year.
- The ITC engages with the definition of manufacturing and processing according to federal standards, ensuring standardized criteria across jurisdictions.
- Applications for the ITC on Used Equipment must be submitted within a specified timeframe, within three years of the taxation year end.
- It is important to submit accurate documentation, as the Ministry of Finance will require verification of PST payments and usage of equipment.
Contacts
Frequently Asked Questions about the Saskatchewan Manufacturing and Processing Profits Tax Reduction Program
Here are answers to the most common questions about the Saskatchewan Manufacturing and Processing Profits Tax Reduction. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Saskatchewan Manufacturing and Processing Profits Tax Reduction?
Corporation income tax is reduced by as much as 2% on Canadian manufacturing and processing profits, as reported on the T2 CIT return.
How much funding can be received?
Saskatchewan Manufacturing and Processing Profits Tax Reduction Funds up to 2% of admissible expenses.
Who is eligible for the Saskatchewan Manufacturing and Processing Profits Tax Reduction program?
To be eligible for the Saskatchewan Manufacturing and Processing Profits Tax Reduction program, you must:
Corporations must be in the manufacturing and processing industry with business operations in Saskatchewan.
Must file a T2 Corporation Income Tax return with some allocation of taxable income to Saskatchewan.
Corporations should complete Schedule 404 in the T2 Corporation Income Tax return to qualify for the tax reduction.
What expenses are eligible under Saskatchewan Manufacturing and Processing Profits Tax Reduction?
The Saskatchewan Manufacturing and Processing Profits Tax Reduction supports projects or activities that increase manufacturing and processing profitability through tax incentives. Eligible activities specifically relate to using equipment and expanding employment in export-oriented businesses. Reducing the income tax rate for corporations in the manufacturing and processing sectors operating in Saskatchewan.
Applying tax reductions based on the allocation of income to Saskatchewan.
Investment in new machinery and equipment for use in manufacturing and processing activities within Saskatchewan.
Purchase of qualifying used manufacturing and processing equipment on which PST has been paid.
Cutting taxes for businesses that increase their number of full-time employees in manufacturing and processing since 2014, focusing on exports.
Who can I contact for more information about the Saskatchewan Manufacturing and Processing Profits Tax Reduction?
You can contact Government of Saskatchewan by email at sasktaxinfo@gov.sk.ca or by phone at 1-800-667-6102.
Where is the Saskatchewan Manufacturing and Processing Profits Tax Reduction available?
The Saskatchewan Manufacturing and Processing Profits Tax Reduction program is available the province of Saskatchewan.
Is the Saskatchewan Manufacturing and Processing Profits Tax Reduction a grant, loan, or tax credit?
Saskatchewan Manufacturing and Processing Profits Tax Reduction is a Tax Credits