Saskatchewan Technology Startup Incentive (STSI)
- Open continuously
Overview
Get a 45% non-refundable tax credit when you invest in an eligible technology-based startup business, up to a maximum of $225,000 per investment
At a glance
Funding available
- Increase performance through digital transformation
- Develop a new product or service
- Conduct research and development activities
- Maximum amount : 2,000,000 $
- Up to 45% of project cost
- Open continuously
Eligible candidates
- Information and cultural industries
- Professional, scientific and technical services
- Saskatchewan
- For-profit business
- All revenue ranges
- 50 employees maximum
- Startups
Next Steps
Activities funded
The Saskatchewan Technology Startup Incentive (STSI) offers opportunities for early-stage technology startups to secure investments and foster innovation and job creation in Saskatchewan. Eligible projects focus on research, development, and commercialization in the digital and clean technology sectors.
- Research and development of digital technologies, including electronics, software, computers, and artificial intelligence.
- Commercialization of novel digital innovations.
- Advancements in clean technologies that increase energy efficiency and conservation.
- Development of clean technologies that reduce greenhouse gas emissions.
- Innovations aimed at reducing environmental impacts of existing industrial processes.
Eligibility
Who is eligible?
Eligible applicants for the Saskatchewan Technology Startup Incentive (STSI) include technology startups, investors, limited partnerships, and venture capital corporations, all primarily based in Saskatchewan.- Technology Startups: Must have fewer than 50 employees, with at least 50% based in Saskatchewan, a head office in Saskatchewan, and must not have raised more than $5 million in equity capital previously. They should be engaged in the innovation of digital or clean technologies.- Individual and Corporate Investors: Must be based in Saskatchewan, paying taxes in the province, and meet the criteria for accredited investors or exemptions under National Instrument 45-106.- Limited Partnerships: Must have partners who are based in Saskatchewan and accredited investors or meet exemption requirements. They should not benefit from other provincial tax incentives.- Venture Capital Corporations: Must be based in Saskatchewan, with the ability to track shareholders' contributions, and must not benefit from other tax incentives like the Labour Sponsored Venture Capital Corporation tax incentive.
Who is not eligible
This grant excludes certain companies and industries related to specific areas of clean technology. These exclusions ensure that the program supports strategic sectors aligned with its objectives.
- Companies developing clean technologies in crop development.
- Businesses involved in agricultural processing for human or animal consumption.
- Firms focused on food and beverage development or manufacturing.
- Organizations producing synthetic or biological stimulants.
- Enterprises engaged in power generation.
- Biomedical technology companies.
Eligible expenses
The Saskatchewan Technology Startup Incentive (STSI) grant is designed to encourage investment in early-stage technology startups in Saskatchewan. The eligible projects focus on digital and clean technologies that bring new products to market and create regional employment opportunities.
- Development of novel digital technologies utilizing electronics, software, computers, or artificial intelligence.
- Research and commercialization of clean technologies that increase energy efficiency or reduce greenhouse gas emissions.
- Innovations in digital or clean technologies that differentiate from existing market products.
Eligible geographic areas
This grant is specifically targeted at technology startups and investors located in Saskatchewan. To be eligible, businesses must operate with their head office in Saskatchewan, and investors must be based in the region.
- Saskatchewan
Additional information
Here are additional relevant details for this grant:
- Tax credit certificates are issued on a first-come, first-served basis, and applications missing required documentation are placed on hold.
- Applications are matched with their respective partners' applications, particularly for venture capital corporations and limited partnerships, to ensure accuracy and eligibility.
- Investments must be finalized through a Share Subscription Agreement, Convertible Note, or a Simple Agreement for Future Equity (SAFE).
- All investments should be submitted within 90 days of the calendar year-end to be considered for tax credits in that year.
- Failure to comply with the holding period of 3 years could result in the repayment of tax credits issued.
- Annual Returns must include specific documentation like an updated shareholder registry, financial statements, and tax returns.
- The program manager can be contacted for any inquiries, and comprehensive details are outlined in the STSI Program Guide.