Saskatchewan Research and Development Tax Credit

The Saskatchewan R&D Tax Credit encourages investment in private-sector research and development through specific financing terms tied to qualifying expenditures. The tax credit is structured to offer both refundable and non-refundable options up to an annual limit.

• A 10% refundable R&D tax credit is available for the first $1 million of annual qualifying expenditures by Canadian-controlled private corporations (CCPCs) in Saskatchewan.
• Qualifying R&D expenditures beyond this $1 million limit, as well as expenditures by other corporations, are eligible for a 10% non-refundable R&D tax credit.
• The total of refundable and non-refundable R&D tax credits is capped at $1 million per corporation per year.

Eligibility for the Saskatchewan Research and Development (R&D) Tax Credit is determined by specific criteria related to the type of expenditures and corporation.

• The applicant must be a corporation incurring qualifying R&D expenditures in Saskatchewan.
• Saskatchewan Canadian-controlled private corporations (CCPCs) are eligible for a 10% refundable R&D tax credit for the first $1 million of qualifying expenditures annually.
• Other corporations and expenditures exceeding the annual limit are eligible for a 10% non-refundable R&D tax credit.
• The total refundable and non-refundable R&D Tax Credits claimed by a corporation must not exceed $1 million per year.

Who is eligible?

Eligible expenses

This grant targets private-sector investment in research and development within the province of Saskatchewan. It supports qualifying R&D expenditures by Canadian-controlled private corporations.

• Research and development activities focusing on scientific or technological advancements.
• Projects that involve innovative product or process development.
• Initiatives aimed at improving efficiency and effectiveness in existing technological systems.
• Collaborative research projects with academic or research institutions.
• Prototyping and testing of new technologies.

Eligible geographic areas

This tax credit is specifically targeted at corporations operating within the province of Saskatchewan. Eligible companies must have qualifying R&D expenditures incurred in this region.

• Corporations located within the province of Saskatchewan.

The Saskatchewan Research and Development (R&D) Tax Credit is aimed at incentivizing private-sector R&D investments in Saskatchewan. The tax credit applies to qualifying R&D expenditures by corporations in Saskatchewan.

• Saskatchewan Canadian-controlled private corporations (CCPCs) can claim a 10% refundable R&D tax credit for the first $1 million annual qualifying expenditures made on or after April 1, 2017.
• Qualifying R&D expenditures exceeding the annual limit, along with those by other corporations, are eligible for a 10% non-refundable R&D Tax Credit.
• The total refundable and non-refundable R&D Tax Credits that may be claimed by a corporation are capped at $1 million per year.
• Tax Credit legislation is detailed in Section 63.4 of The Income Tax Act, 2000.
• To claim the tax credit, corporations need to complete Schedule 403 from the Canada Revenue Agency (CRA) and submit it along with their annual Saskatchewan corporate income tax return.