How much funding can be received?

The Saskatchewan Technology Startup Incentive (STSI) provides a non-refundable 45% tax credit for Saskatchewan-based investors who invest in eligible startup businesses (ESBs) within the province. The program's financing modalities are designed to encourage investment in early-stage technology startups, promoting innovation and job creation.

The annual program cap is $7 million, with tax credits awarded on a first-come, first-served basis.
Eligible Startup Businesses can raise a maximum of $2 million under the program.
An investor can earn up to $225,000 in tax credits per annual investment, claiming a maximum of $140,000 per tax year.
For investments made between April 1, 2018, and December 31, 2020, tax credits can be claimed over a 4-year period, while credits for investments made after January 1, 2021, can be claimed over a 7-year period.
Investments must be fully paid in cash and purchase shares or convertible rights directly from the ESB.
The tax credit holding period for investments is a minimum of three years.
Applicants are required to undergo regular reporting and annual returns to maintain eligibility for the program.
The program supports investments in digital technology and clean technology startups, excluding certain areas like crop development and power generation.

grant_single_labels|projects

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.

grant_single|admissibleProjectsExample

$ 193,500

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

$ 225,000

Research and development of biodegradable packaging solutions for reducing environmental impact

$ 166,500

Advanced robotics to enhance automation in urban agriculture systems

$ 157,500

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

$ 180,000

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

$ 198,000

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

grant_single_labels|admissibility

To be eligible for the Saskatchewan Technology Startup Incentive (STSI), a startup business must meet specific criteria related to its operations, structure, and focus on technology.

Have fewer than 50 employees, including full-time, part-time, and contract workers, with at least 50% based in Saskatchewan.
Have its head office in Saskatchewan and be registered to carry on business in the province.
Must not have previously raised more than $5 million in equity capital.
Meet the technology eligibility criteria, which includes being substantially engaged in the research, development, and commercialization of novel innovations in digital or clean technologies.
A technology is considered novel if it is an advancement on what currently exists in the marketplace and 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 increase energy efficiency and conservation, reduce greenhouse gas emissions, or reduce the net environmental impacts of existing industrial processes.
Businesses developing clean technologies in areas such as crop development, agricultural processing for consumption, food and beverage development or manufacturing, synthetic or biological stimulants, power generation, or biomedical technologies are not eligible for STSI, except when related to digital technologies.

grant_eligibility_criteria|who_can_apply

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.

grant_eligibility_criteria|who_cannot_apply

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.

grant_eligibility_criteria|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.

grant_eligibility_criteria|zone

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

grant_single_labels|criteria

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.

grant_single_labels|register

Here are the steps to submit an application for the Saskatchewan Technology Startup Incentive (STSI):

Step 1: User Account Creation
Register through the Online Application Portal at the official STSI website.
Provide your name, email address, and create a password to establish your user account.
Step 2: Application Selection
Once logged in, navigate to the STSI Forms Page.
Select the application type you wish to complete, such as Technology Company Application, Individual and Corporate Investor Application, Limited Partnership Application, or Venture Capital Corporation Application.
Step 3: Application Completion
Fill out the selected application form with the required details.
Save your progress and return if necessary before submitting the completed application.
Step 4: Application Submission
Submit the application through the Online Application Portal.
Ensure you receive an email confirmation upon successful submission.
Step 5: Post-Submission Process
Startup applications will be evaluated within 3 to 4 weeks, and investor applications typically within 1 to 2 weeks.
If all eligibility criteria are met, you will receive a Certificate/Notification of Eligibility from Innovation Saskatchewan.
Step 6: Investment and Proof Submission (if applicable)
If acting as an Eligible Startup Business, seek investment from an Eligible Investor.
Submit a Tax Credit Certificate Application on behalf of the investors.
Provide necessary proof of investment documents to Innovations Saskatchewan.

grant_single_labels|otherInfo

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.

grant_single_labels|contact

stsi@innovationsask.ca

Apply to this program

Unlock Investment Opportunities with the Saskatchewan Technology Startup Incentive (STSI)

The Saskatchewan Technology Startup Incentive (STSI) is a pivotal program designed to fuel the growth of early-stage technology startups in Saskatchewan through significant tax incentives for local investors. This initiative is aimed at bringing innovative products to market and creating new employment opportunities while supporting the province's economic development goals.

Dive Deep into the Benefits and Process of the Saskatchewan Technology Startup Incentive

The Saskatchewan Technology Startup Incentive (STSI) seeks to stimulate local investment in technology startups operating within the province by offering a substantial tax credit. This program provides a 45% non-refundable tax credit to investors based in Saskatchewan, who commit financial resources to Eligible Startup Businesses (ESBs). These ESBs must be engaged in the research, development, or commercialization of novel innovations in either digital or clean technologies, presenting an advancement over existing market solutions, with unique features that set them apart from competitors.

This tax incentive exists to encourage economic growth and innovation within the province, recognizing the vital role technology startups play in modern economies. By facilitating access to capital, the STSI helps these startups overcome some of the typical financial barriers faced during their early stages. As a result, the program intends to accelerate the introduction of cutting-edge products and services, create jobs, and enhance Saskatoon’s entrepreneurial ecosystem.

Investors can earn up to $225,000 in tax credits annually, reflecting their investment's value in supporting emergent business ventures that comply with Saskatchewan's stringent requirements. To ensure alignment with Saskatchewan's economic development goals, startups must establish their head offices in the province and ensure a significant proportion of their workforce is Saskatchewan-based. Moreover, companies cannot have previously raised more than $5 million in equity capital, ensuring that the program's benefits remain targeted at early-stage ventures that most need financial support.

One of the notable features of the STSI is its expansive seven-year claiming period for tax credits earned from investments made after January 1, 2021. This extended timeline provides investors with ample opportunity to reclaim their credits, facilitating sustained financial engagement with young startups. Conversely, credits from earlier investments, between April 2018 and December 2020, offer a shorter four-year claiming period, marking a transition in program policy to encourage longer-term investment horizons post-2021.

The STSI program operates on a first-come, first-served basis, with an annual cap of $7 million in tax credits, meaning both startups and investors should engage with the application process early to secure benefits. The comprehensive application procedure involves multiple steps, including creating a user profile on the Online Application Portal, submitting detailed applications, and fulfilling rigorous proof of investment requirements to validate the legitimacy of investments.

To participate, both startups and investors must register independently through this portal, ensuring that all regulatory requirements are met before any business transactions occur. This ensures a streamlined process where only qualified businesses and investors are engaged, maximizing the program's effectiveness in fostering meaningful economic contributions to Saskatchewan's diverse economy.

For those prepared to commit to the three-year holding period, where the investor’s equity in a startup must remain unaltered, the program offers an invaluable opportunity to support technological innovation while benefiting from significant tax incentives. Through the STSI, investors contribute to a thriving local economy that values innovation, sustainability, and forward-thinking business practices, positioning Saskatchewan as a competitive player in the global technological landscape.

With additional administrative guidance available from Innovation Saskatchewan, participants can navigate the complexities of the program, ensuring compliance and optimal outcomes with respect to their investment strategies. As Saskatchewan continues to elevate its position as an innovation hub, the STSI remains central to supporting emerging businesses that promise economic benefits and drive forward the province's strategic goals.