Closed
Source verified July 19, 2026
Saskatchewan Manufacturing and Processing Investment Tax Credit
Refundable tax credit for manufacturing property
Funding available
Up to 6% of project cost
Deadline
Open continuously
Location
Saskatchewan, Canada
Overview
Saskatchewan manufacturing and processing investment tax credit provides a fully refundable credit equal to 6% of the capital cost of qualified property used in Saskatchewan mainly to manufacture or process goods for lease or sale. Corporations exempt under section 149 of the federal Income Tax Act are not eligible.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase production or service capacity
- Increase operational productivity
- Optimize production processes
Eligible Funding
- Up to 6% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Saskatchewan
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Purchase of qualifying new equipment for manufacturing and processing activities
- Purchase of qualifying used equipment for manufacturing and processing activities
- Investment in new buildings, machinery, and equipment used in Saskatchewan
Documents Needed
- Completed Schedule 402, Saskatchewan Manufacturing and Processing Investment Tax Credit
Official resources
Eligibility
Who is eligible?
- Manufacturing and processing corporations
- Corporations with a permanent establishment in Saskatchewan
- Businesses purchasing qualifying new or used M&P equipment
Who is not eligible
- Corporations exempt under section 149 of the federal Income Tax Act
Eligible expenses
- Qualifying new or used machinery and equipment
- New buildings used for manufacturing or processing
- Installation and initial setup costs for eligible equipment
- Capital lease costs for qualifying property
Ineligible Costs and Activities
- Property used for storing, shipping, selling, leasing, or administering finished goods
- Raw material purchases
- Purchase and resale operations
- Data processing and employee facilities
- Activities such as farming, fishing, logging, construction, and oil and gas extraction or processing
Eligible geographic areas
- Saskatchewan
How to apply
- File a completed Schedule 402, Saskatchewan Manufacturing and Processing Investment Tax Credit, with your return.
- Enter the amount of the credit you are claiming on line 644 of Schedule 5, Tax Calculation Supplementary – Corporations.
Processing and Agreement
- New equipment claims are reviewed through the Canada Revenue Agency with the annual T2 return.
- Used equipment claims are submitted to the Saskatchewan Ministry of Finance.
- The applicant must certify that the information provided is true and complete.
- Claims may be subject to verification based on supporting documents.
Additional information
- The program has two parts: one for new equipment and one for used equipment.
- New equipment claims are filed with the annual T2 Corporate Income Tax Return.
- Used equipment claims are submitted directly to the Saskatchewan Ministry of Finance.
- The credit can be carried forward in some cases, subject to the program rules.
Contacts
Frequently Asked Questions about the Saskatchewan Manufacturing and Processing Investment Tax Credit Program
What is the Saskatchewan Manufacturing and Processing Investment Tax Credit?
Saskatchewan manufacturing and processing investment tax credit provides a fully refundable credit equal to 6% of the capital cost of qualified property used in Saskatchewan mainly to manufacture or process goods for lease or sale. Corporations exempt under section 149 of the federal Income Tax Act are not eligible.
How much funding can be received?
Saskatchewan Manufacturing and Processing Investment Tax Credit Funds up to 6% of admissible expenses.
Who is eligible for the Saskatchewan Manufacturing and Processing Investment Tax Credit program?
To be eligible for the Saskatchewan Manufacturing and Processing Investment Tax Credit program, you must:
Manufacturing and processing corporation
T2 filer with Saskatchewan income allocation
Qualifying equipment used in Saskatchewan
What expenses are eligible under Saskatchewan Manufacturing and Processing Investment Tax Credit?
Purchase of qualifying new equipment for manufacturing and processing activities
Purchase of qualifying used equipment for manufacturing and processing activities
Investment in new buildings, machinery, and equipment used in Saskatchewan
Who can I contact for more information about the Saskatchewan Manufacturing and Processing Investment Tax Credit?
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 Investment Tax Credit available?
The Saskatchewan Manufacturing and Processing Investment Tax Credit program is available the province of Saskatchewan.
Is the Saskatchewan Manufacturing and Processing Investment Tax Credit a grant, loan, or tax credit?
Saskatchewan Manufacturing and Processing Investment Tax Credit is a Tax Credits