Open
Source verified July 10, 2026
Saskatchewan Manufacturing and Processing Profits Tax Reduction
Income tax reduction for manufacturing and processing in Saskatchewan
Funding available
Up to 2% of project cost
Deadline
Open continuously
Location
Saskatchewan, Canada
Who can apply
Manufacturing and processing corporations with business in Saskatchewan.
See full eligibility
Overview
Manufacturing and Processing Tax Credits help Saskatchewan manufacturing and processing corporations reduce tax on eligible profits and invest in qualifying equipment. The program includes a reduction of up to 2 percentage points and a refundable tax credit for qualifying new or used machinery and equipment used in Saskatchewan.
/100
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
Eligible candidates
Eligible Industries
- All industries
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
- Manufacturing or processing goods for sale or lease in Canada
- Manufacturing and processing activities in Saskatchewan
- Generating or producing electrical energy or steam for sale in Saskatchewan
Documents Needed
- Completed Schedule 402 with the annual T2 Corporate Income Tax Return
- Manufacturing and Processing Investment Tax Credit on Used Equipment application
- Copies of purchase invoices
- Financial statements
- Documentation verifying PST was paid on all taxable items
Official resources
Application form
Supporting document
Eligibility
Who is eligible?
- Manufacturing and processing corporations with business in Saskatchewan.
Who is not eligible
- Corporations whose primary activity is not manufacturing and processing.
Eligible expenses
- Expenditures made on qualifying machinery and equipment made available for use in Saskatchewan
- Total capital cost of eligible building, machinery and equipment purchases, including PST
- Qualifying new building or new machinery and equipment that has not been used or acquired for use or lease for any other purpose before it was acquired by a taxpayer
- Qualifying used equipment on which PST has been paid
Ineligible Costs and Activities
- Property used for storing finished goods
- Property used for shipping finished goods
- Property used for selling finished goods
- Property used for leasing finished goods
- Property used for purchasing raw materials
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.
How to apply
- For qualifying new equipment, include a completed Schedule 402 with the annual T2 Corporate Income Tax Return.
- For qualifying used equipment, complete the Manufacturing and Processing Investment Tax Credit on Used Equipment application.
- Include copies of purchase invoices, financial statements, the T2 Corporation Income Tax Return, and documentation verifying PST was paid on all taxable items.
- Submit applications to Ministry of Finance, Revenue Division, Box 200, Regina SK S4P 2Z6.
Processing and Agreement
- The reduction is administered by the Canada Revenue Agency.
- Credits will be applied directly against any Saskatchewan Income Tax payable calculated on the T2 return.
- The M&P ITC for qualifying used equipment is administered by the Ministry of Finance.
Additional information
- Important information on eligibility requirements can be found in the Saskatchewan Manufacturing and Processing Investment Tax Credit Information Bulletin.
- Please read the Information Bulletin thoroughly prior to applying for the incentive.
Frequently Asked Questions about the Saskatchewan Manufacturing and Processing Profits Tax Reduction Program
What is the Saskatchewan Manufacturing and Processing Profits Tax Reduction?
Manufacturing and Processing Tax Credits help Saskatchewan manufacturing and processing corporations reduce tax on eligible profits and invest in qualifying equipment. The program includes a reduction of up to 2 percentage points and a refundable tax credit for qualifying new or used machinery and equipment used in Saskatchewan.
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:
The corporation must have a permanent establishment in Saskatchewan.
The corporation must have taxable income earned in Saskatchewan.
The corporation must have Canadian manufacturing and processing profits earned in Saskatchewan.
What expenses are eligible under Saskatchewan Manufacturing and Processing Profits Tax Reduction?
Manufacturing or processing goods for sale or lease in Canada
Manufacturing and processing activities in Saskatchewan
Generating or producing electrical energy or steam for sale in Saskatchewan
Who can I contact for more information about the Saskatchewan Manufacturing and Processing Profits Tax Reduction?
You can contact Government of Saskatchewan.
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