Saskatchewan Value-added Agriculture Incentive

The Saskatchewan Value-added Agriculture Incentive (SVAI) provides a structured tax credit scheme designed to support capital investments in value-added agriculture facilities. The tax credits are applied progressively based on the scale of capital expenditures.

• 15% tax credit on qualifying capital expenditures up to $400 million.
• 30% tax credit on qualifying capital expenditures between $400 million and $600 million.
• 40% tax credit on qualifying capital expenditures exceeding $600 million.
• The total incentives any single project can claim is capped at $250 million.
• The tax credit can be utilized against corporate income tax over a three- to 10-year period after the facility commences operations.
• Redemption of the credits is staggered over time, with a limit of 20% in the first year, 30% in the second year, and 50% in the third year following the year a Certificate of Eligibility is issued.
• Unutilized credits can be carried forward for up to 10 years.
• The program permits claiming other eligible tax incentives or grants without affecting SVAI eligibility.

Eligibility for this grant is determined by specific requirements related to the project's expenditures and activities.

• The project must involve new or expanded value-added agricultural facilities.
• The project must include $10 million in new capital expenditures.
• Expenditures must demonstrate an increase in productive capacity.
• The project must meet the program's definition of value-added agriculture activity.
• The applicant must provide certification from a qualified third party confirming the increase in productive capacity due to eligible capital expenditures.

Who is eligible?

Eligible expenses

Eligible projects for the Saskatchewan Value-added Agriculture Incentive involve the physical transformation or upgrading of agricultural products or byproducts into new or upgraded products. These activities enhance the productive capacity of facilities engaging in value-added agriculture.

• Pea protein processing facilities.
• Oat milling operations.
• Malt production facilities.
• Cannabis oil processing facilities.

Eligible geographic areas

This grant is targeted at agriculture facilities within Saskatchewan, as indicated by the administering body being the Ministry of Trade and Export Development of Saskatchewan, Canada. The focus is on supporting the regional development of value-added agriculture projects within this province.

• Companies located in Saskatchewan, Canada.

The Saskatchewan Value-added Agriculture Incentive (SVAI) program aims to encourage investment in the province's value-added agricultural sector by offering tax credits on qualifying capital expenditures.

• Tax credits can be claimed over a three- to 10-year period.
• Redemption limits are 20% in the first year, 30% in the second year, and 50% in the third year.
• Remaining tax credit amounts can be carried forward for up to 10 years.
• Eligible applicants can claim other tax incentives or grants without affecting their eligibility for the SVAI tax credit.
• Certification from a qualified third party is required to demonstrate that capital expenditures increased productive capacity.
• The program has been effective since September 1, 2017.