How much funding can be received?

The Saskatchewan Technology Startup Incentive (STSI) program supports projects and activities that involve the research, development, and commercialization of novel innovations in digital or clean technologies. These innovations must either be an advancement on current market products or have unique features and benefits that set them apart from competitors.

Research and development of innovative digital solutions using electronics, software, computers, or artificial intelligence
Development of technologies that increase energy efficiency and conservation
Projects aimed at reducing greenhouse gas emissions
Initiatives that reduce the net environmental impacts of existing industrial processes

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$157,500

Saskatoon

Development of an AI-driven platform for optimizing energy consumption in commercial buildings.

$180,000

Regina

Installation of solar panel systems to increase energy efficiency in residential areas.

$225,000

Calgary

Research and development of biodegradable packaging solutions for reducing environmental impact.

$166,500

Regina

Advanced robotics to enhance automation in urban agriculture systems.

$198,000

Toronto

Development of a smart water management system to conserve water in urban areas.

$193,500

Vancouver

Development of a blockchain-based supply chain management system to enhance transparency.

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The eligibility criteria for this grant involve the requirements for both Eligible Startup Businesses (ESBs) and investors, including individual or corporate investors, limited partnerships, and venture capital corporations. Below are the detailed criteria for each category:

Have fewer than 50 employees, including full-time, part-time, and contract workers. At least 50% of these employees must be based in Saskatchewan.
Have its head office in Saskatchewan and be registered to carry on business in the province.
Have not previously raised more than $5 million in equity capital.
Meet the technology eligibility criteria.
A startup must be substantially engaged in the research, development, and commercialization of novel innovations in digital or clean technologies to be considered an ESB.
A technology is considered novel if:
It is an advancement on what currently exists in the marketplace.
It has unique features and benefits that differentiate it from competitors.
Digital Technology is defined as innovative solutions based on the use of electronics, software, computers, artificial intelligence, and other similar information/data systems.
Clean Technology is defined as innovations that do one or more of the following:
Increase energy efficiency and conservation.
Reduce greenhouse gas emissions.
Reduce the net environmental impacts of existing industrial processes.
Businesses developing clean technologies in the following areas are not eligible for STSI:
Crop development.
Agricultural processing for the purpose of human or animal consumption.
Food and beverage development or manufacturing.
Synthetic or biological stimulants.
Power generation.
Biomedical technologies.

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The Saskatchewan Technology Startup Incentive (STSI) program is designed to support early-stage technology startups that bring innovative products to market and create jobs in Saskatchewan. Eligible companies must meet specific criteria, particularly in the digital or clean technology sectors.

Have fewer than 50 employees, with at least 50% based in Saskatchewan.
Head office must be located in Saskatchewan and registered to carry on business in the province.
Have not raised more than $5 million in equity capital.
Must be substantially engaged in the research, development, and commercialization of novel digital or clean technologies.

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Yes, certain types of companies are not eligible for the Saskatchewan Technology Startup Incentive (STSI). Specifically, businesses developing certain clean technologies related to agriculture and power generation are excluded from eligibility.

Crop development
Agricultural processing for the purpose of human or animal consumption
Food and beverage development or manufacturing
Synthetic or biological stimulants
Power generation
Biomedical technologies

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The Saskatchewan Technology Startup Incentive (STSI) program is designed exclusively for startups and investors based in Saskatchewan, Canada. Applicants must meet residency and business operation requirements within the province.

Saskatchewan

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Yes, there are evaluation and selection criteria for the STSI program, which ensure that both startups and investors meet specific eligibility and program requirements. The criteria for technology startup businesses and investors are detailed to guide applicants through qualifications and procedural expectations.

Startups must have fewer than 50 employees, with at least 50% based in Saskatchewan.
The company's head office must be in Saskatchewan and registered to carry on business in the province.
Startups must not have previously raised more than $5 million in equity capital.
Startups must be engaged in the research, development, and commercialization of novel innovations in digital or clean technologies.
Investors, whether individuals or corporations, must be based in Saskatchewan and pay Saskatchewan taxes.
Investors must be accredited or meet the exemption requirements outlined in the National Instrument 45-106, Prospectus Exemptions.
Limited Partnerships must file a Declaration of Limited Partnership and ensure their partners are based in Saskatchewan and meet the investment criteria.
Venture Capital Corporations must be based in Saskatchewan, have equity capital of at least $25,000, and track shareholder contributions.

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Step 1: Startups and investors (Individuals, Corporations, Limited Partnerships) must create a user account through the Online Application Portal.
Step 2: Once you have created an account, you will be directed to the STSI Forms Page. Select the application best suited for you.
Step 3: Fill out and submit the application. If the application was successfully submitted, you will receive an email confirmation. If you do not receive an email confirmation, please contact stsi@innovationsask.ca.

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The STSI program offers numerous resources and has specific requirements for maintaining eligibility and claiming tax credits. Additionally, it emphasizes the importance of holding periods and provides detailed steps for startups and investors.

Processing times: 3-4 weeks for startups, 1-2 weeks for investors.
An investment must be held for a minimum of 3 years.
Tax credits for investments made from April 1, 2018, to December 31, 2020, can be claimed over 4 years.
Tax credits for investments made after January 1, 2021, can be claimed over 7 years.
Annual returns must be submitted within 6 months of the fiscal year end.
Unused credits may be carried forward depending on the investment date.
Program contacts include a Program Manager available at stsi@innovationsask.ca or 306-221-2170, and Innovation Saskatchewan's head office at 306-933-6609.

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stsi@innovationsask.ca

306-221-2170

Apply to this program

Saskatchewan Technology Startup Incentive (STSI) Summary

The Saskatchewan Technology Startup Incentive (STSI) offers a non-refundable 45% tax credit to encourage investments in early-stage technology startups in Saskatchewan, with a focus on creating jobs and driving innovation. The program will expand on April 1, 2024, to include clean technology startups and an increased annual program cap of $7 million.

In-Depth Guide to the Saskatchewan Technology Startup Incentive (STSI)

The Saskatchewan Technology Startup Incentive (STSI) is a critical program designed to foster innovation and encourage investment in the technology sector within Saskatchewan. With a particular focus on early-stage tech startups, this initiative aims to bring fresh products to market and generate job opportunities in the province. As of April 1, 2024, the program will feature an updated annual program cap of $7 million and will extend its reach to include startups involved in developing clean technologies. This detailed guide will provide an extensive overview of the STSI, its eligibility criteria, application process, and the benefits it offers to businesses and investors.

Program Overview

The STSI program provides significant financial incentives to investors willing to support early-stage technology startups. Eligible investors can receive a non-refundable tax credit of 45% on their investments in Eligible Technology Startup Businesses (ESBs). These tax credits are distributed on a first-come, first-served basis until the annual program cap of $7 million is reached. Notably, a startup can raise up to $2 million under this program, with a stipulation that no more than $1 million of this investment can have occurred before April 1, 2021.

Expanding to Clean Technology

Starting April 1, 2024, the STSI program will broaden its spectrum to incorporate startups that are innovating within the clean technology space. Clean technology, as per the program's definition, includes advancements aimed at increasing energy efficiency, reducing greenhouse gas emissions, and minimizing the environmental footprint of industrial processes. However, certain areas like crop development, agricultural processing, and power generation are excluded from this category unless they qualify under digital technology innovations.

Eligibility Criteria for Businesses

General Requirements for Eligible Startup Businesses (ESBs)

To qualify as an ESB under the STSI program, a company must meet the following requirements:

Have fewer than 50 employees, including full-time, part-time, and contract workers, with at least 50% of these employees based in Saskatchewan;
Be headquartered in Saskatchewan and registered to conduct business in the province;
Not have raised more than $5 million in equity capital before applying;
Be substantially involved in the research, development, and commercialization of novel digital or clean technologies.

Technology Eligibility Criteria

A startup's technology must be classified as novel, which means it must present an advancement over existing market solutions and possess unique features that distinguish it clearly from competitors. Digital technology encompasses innovations involving electronics, software, computers, artificial intelligence, and similar information/data systems. Clean technology, meanwhile, is defined by its focus on energy efficiency, greenhouse gas reduction, and lowering environmental impact.

Eligibility Criteria for Investors

Individual or Corporate Investors

Both individuals and corporations can apply to become eligible investors, provided they meet the following criteria:

Must be based in Saskatchewan, paying taxes within the province;
Must be accredited investors or meet the exemption requirements outlined in the National Instrument 45-106, Prospectus Exemptions.

Limited Partnerships and Venture Capital Corporations (VCCs)

For Limited Partnerships and VCCs, additional requirements include:

A mechanism to track ownership interests or shareholder contributions;
Registration in accordance with the Business Names Registration Act;
Not benefiting from another provincial tax incentive program;
For Limited Partnerships: limited partners must be accredited investors or meet the exemption requirements.
For VCCs: must have a minimum of $25,000 equity capital and a suitable share structure.

Application Process

Creating an Account

Prospective applicants, whether startups or investors, must begin by creating a user account via the Online Application Portal. Post-registration, they will be directed to select and complete the appropriate application form corresponding to their category—technology company, individual or corporate investor, limited partnership, or venture capital corporation.

Evaluation and Eligibility

Submitted applications undergo thorough evaluation to ensure they meet the STSI's eligibility criteria. Processing times typically range from 3 to 4 weeks for startup applications and 1 to 2 weeks for investor applications. Successful applicants will receive a Certificate/Notification of Eligibility from Innovation Saskatchewan.

Raising Equity Capital

Once a startup has received investment from an eligible investor, they must submit a Tax Credit Certificate Application on behalf of their investors. This application can also be submitted by limited partnerships and venture capital corporations for their partners and shareholders, respectively.

Holding Period Requirements

An investment in an ESB must be held for a minimum of 3 years. Non-compliance with this holding period can result in the revocation of tax credits or the requirement to repay issued credits. Convertible instruments like SAFEs and Convertible Notes may be converted within the holding period, although the newly issued shares must be retained until the period ends.

Claiming the Tax Credit

To claim the tax credit:

Receive a tax credit certificate from Innovation Saskatchewan.
File a personal or corporate income tax return for the applicable tax year.
Complete an STSI Claim Form and submit it with the tax credit certificate and a Notice of Assessment from the Canada Revenue Agency to the Ministry of Finance.

The Ministry of Finance will verify the claim and calculate the rebate as per the program regulations. Refunds are processed within 21 business days if all submitted information is complete and accurate.

Claiming Period

Unused tax credits can be carried forward. For investments made between April 1, 2018, and December 31, 2020, credits can be claimed over a 4-year period. For investments made after January 1, 2021, the claiming period extends to 7 years.

Reporting Requirements

Eligible Startup Businesses, Limited Partnerships, and VCCs must submit an Annual Return within 6 months of their fiscal year-end. Failing to submit this annual return could result in the suspension of eligibility or revocation of tax credits from their investors.

Contact Information

For any queries or further information about the STSI program, interested parties can contact the Program Manager at stsi@innovationsask.ca or 306-221-2170. Alternatively, one can reach out to Innovation Saskatchewan's head office at 306-933-6609.

By adhering to the application guidelines and meeting all eligibility criteria, businesses and investors can significantly benefit from the Saskatchewan Technology Startup Incentive, paving the way for technological advancements and economic growth within the province.