Saskatchewan Value-added Agriculture Incentive
SK, Canada
Tax credit for capital investments
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateSeptember 01, 2017
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
- Manufacturing
grant_single|grantors
- Government of Saskatchewan
grant_single|status
grant_card_status|open
grant_single_labels|preview
Get a non-refundable, non-transferable 15% tax rebate on capital expenditures valued at $10 million or more for newly constructed or expanded agriculture facilities in SK
grant_single_labels|projects
Eligible projects include new and existing value-added agricultural facilities with $10 million in new capital expenditures aimed at increasing productive capacity. Potential examples include facilities involved in the physical transformation or upgrading of raw agricultural products into new or improved products.
- Pea protein processors
- Oat milling operations
- Malt producers
- Cannabis oil processing facilities
grant_single|admissibleProjectsExample
$2,850,000
Swift Current
Establish a new state-of-the-art soybean processing facility
$1,950,000
Saskatoon
Expand an existing oat milling operation to increase capacity
$2,700,000
Regina
Establish a pea protein processing plant to meet growing market demand
$2,100,000
Prince Albert
Create a cannabis oil processing facility to boost product offerings
$2,250,000
Moose Jaw
Build a new malt production facility to support the local craft brewing industry
$1,650,000
North Battleford
Expand flaxseed milling operations to meet export demands
grant_single_labels|admissibility
Eligible projects must be new or expanded value-added agricultural facilities in Saskatchewan, and must involve capital expenditures of at least $10 million to increase productive capacity.
- New and existing value-added agricultural facilities
- Minimum $10 million in new capital expenditures
- Expenditures must increase productive capacity
- Must meet the program's definition of value-added agriculture activity
- Certification from a qualified third party confirming the increased productive capacity
- Program is effective as of September 1, 2017
grant_eligibility_criteria|who_can_apply
Eligible types of companies for the Saskatchewan Value-added Agriculture Incentive (SVAI) are those involved in value-added agriculture activities, with projects that entail at least $10 million in new capital expenditures aimed at increasing productive capacity.
- Pea protein processors
- Oat milling operations
- Malt producers
- Cannabis oil processing facilities
grant_eligibility_criteria|eligible_expenses
Eligible expenses for the Saskatchewan Value-added Agriculture Incentive include new capital expenditures aimed at increasing productive capacity.
- Construction costs of new facilities
- Expansion costs of existing facilities
- Equipment purchases
- Installation and commissioning costs
grant_eligibility_criteria|zone
The eligible geographic zone for the Saskatchewan Value-added Agriculture Incentive (SVAI) is the province of Saskatchewan in Canada.
- Saskatchewan, Canada
grant_single_labels|register
- Step 1: Prepare and submit the SVAI – Application for Conditional Approval. If you have questions about the application process, refer to the SVAI – Program Overview and Application Instructions or contact svai@gov.sk.ca
- Step 2: If your application meets the preliminary eligibility requirements, you will receive a letter conditionally approving the investment project.
- Step 3: Following completion of the investment project, submit the SVAI – Request for Certificate of Eligibility and required attachments.
- Step 4: If the corporation meets the program requirements, the Ministry of Trade and Export Development will provide you with a SVAI Certificate of Eligibility stating the eligible capital expenditures to claim.
- Step 5: The taxation year that the Certificate of Eligibility is issued initiates the applicant's 10-year rebate period to claim the SVAI.
- Step 6: To initiate the rebate period, file the T2 CIT with the Canada Revenue Agency (CRA). Once the CIT return has been assessed and a T2 Notice of Assessment from the CRA has been received, complete the SVAI Claim Form and submit it to the Ministry of Finance, including a copy of the SVAI Certificate of Eligibility, as issued by the Ministry of Trade and Export Development, and the current year Notice of Assessment or Reassessment. A claim form will need to be submitted for each year that the rebate is claimed.
- Step 7: The Ministry of Finance will verify the Claim Form and provide:
- A rebate calculated in accordance with the program legislation; or
- A written notice indicating that the corporation is not entitled to the rebate and the reasons for the determination.
grant_single_labels|otherInfo
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.
grant_single_labels|contact
ron.kehrig@gov.sk.ca
306-221-8263
Apply to this program
Saskatchewan Value-added Agriculture Incentive
The Saskatchewan Value-added Agriculture Incentive (SVAI) offers non-refundable tax credits for new or expanded agriculture facilities with capital expenditures of $10 million or more. This incentive aims to promote the agricultural sector by providing graduated tax credits to facilities that enhance their productive capacity through physical transformation of raw or waste agricultural products.
Understanding the Saskatchewan Value-added Agriculture Incentive (SVAI)
The Saskatchewan Value-added Agriculture Incentive (SVAI) is a robust program aimed at fostering growth and innovation in the province's agricultural sector. Administered by the Ministry of Trade and Export Development, the SVAI serves as an attractive proposition for companies seeking to establish or expand value-added agriculture facilities in Saskatchewan. This detailed guide will walk you through the critical aspects of the SVAI, including its benefits, eligibility criteria, application process, and more.
Objectives of the SVAI
The overarching goal of the SVAI is to support and invigorate the agricultural sector in Saskatchewan. By offering significant tax credits, the program incentivizes companies to make substantial capital investments in new or expanded facilities focused on value-added agriculture. Value-added agriculture is defined as the process of physically transforming or upgrading raw agricultural products, byproducts, or waste into new or improved products. This transformation creates additional value, promoting economic growth and job creation within the province.
Key Benefits of the SVAI
The SVAI provides several benefits designed to attract investment and enhance the competitive edge of Saskatchewan’s agricultural sector:
- Tax Credits on Capital Expenditures: The program offers a non-refundable, non-transferable tax credit on capital expenditures valued at $10 million or more. The credit can be applied against corporate income tax (CIT) paid over a three- to ten-year period once the new or expanded facility is operational.
- Graduated Tax Credit Structure: The tax credits are structured as follows:
- 15% tax credit on expenditures up to $400 million.
- 30% tax credit on expenditures between $400 million and $600 million.
- 40% tax credit on expenditures exceeding $600 million.
- Redemption Limitations: Companies can claim 20% of the credit in the first year, 30% in the second year, and 50% in the third year. Any remaining amounts can be carried forward for up to 10 years.
- Compatibility with Other Programs: Eligible applicants can also benefit from other incentive programs offered by Saskatchewan without affecting their eligibility for the SVAI.
Eligibility Criteria
To qualify for the SVAI, projects must meet specific criteria:
- Capital Expenditure Threshold: The project must involve at least $10 million in new capital expenditures.
- Productive Capacity Increase: The expenditures must result in an increase in the productive capacity of the facility.
- Definition of Value-added Agriculture: The project must involve the physical transformation or upgrading of raw/primary agricultural products, byproducts, or waste into new or improved products. Examples include pea protein processors, oat milling operations, malt producers, and cannabis oil processing facilities. Facilities solely dedicated to cleaning, bagging, handling, and/or storing of primary products are excluded.
- Certification Requirement: Applicants must provide certification from a qualified third party confirming that the capital expenditures resulted in an increase in productive capacity.
Application Process
The SVAI application process is designed to ensure robust evaluation and efficient implementation:
- Preliminary Approval: Companies must first prepare and submit the SVAI - Application for Conditional Approval. Guidance on the application process can be found in the SVAI - Program Overview and Application Instructions, or by contacting svai@gov.sk.ca. If the application meets the preliminary eligibility requirements, the applicant will receive a letter of conditional approval.
- Post-Completion Submission: Upon completion of the investment project, applicants must submit the SVAI - Request for Certificate of Eligibility alongside the required documentation. If the requirements are met, the Ministry of Trade and Export Development will issue a Certificate of Eligibility stating the eligible capital expenditures.
- Initiating the Rebate: The issuance of the Certificate of Eligibility starts the 10-year rebate period. To initiate the rebate, the company must file a T2 CIT with the Canada Revenue Agency (CRA). After receiving the T2 Notice of Assessment from the CRA, the SVAI Claim Form, along with the Certificate of Eligibility and the current year Notice of Assessment or Reassessment, must be submitted to the Ministry of Finance.
- Claims Verification: The Ministry of Finance will verify the Claim Form. It will either issue a rebate calculated as per the program legislation or provide a written notice if the corporation is not entitled to the rebate, detailing the reasons for the determination.
Required Documentation
Applicants must prepare and submit several documents throughout the SVAI application process, including:
- SVAI - Program Overview and Application Instructions
- SVAI - Application for Conditional Approval
- SVAI - Request for Certificate of Eligibility
- SVAI - Claim Form
Further Information
For more information about the program, including detailed instructions and application forms, visit the following resources:
- SVAI Program Overview and Application Instructions
- SVAI Claim Form
- SVAI Fact Sheet
- The Saskatchewan Value-added Agriculture Incentive Act
- The Saskatchewan Value-added Agriculture Incentive Regulations
- The Income Tax Act 2000 (see Section 64.7)
If you have questions regarding the SVAI or the application process, you can contact the Ministry of Trade and Export Development at svai@gov.sk.ca. For queries related to the SVAI Claim Form, contact the Ministry of Finance at 1-800-667-6102 or 306-787-6645, or email sasktaxinfo@gov.sk.ca.
Conclusion
The Saskatchewan Value-added Agriculture Incentive is a significant opportunity for companies involved in value-added agricultural activities to receive substantial tax credits for their capital investments. By meeting the eligibility criteria and following the structured application process, companies can enhance their productive capabilities and contribute to the growth of Saskatchewan’s agricultural sector. Additionally, the compatibility of SVAI with other provincial incentives makes this program an attractive option for agricultural investors seeking to maximize their returns and impact. The SVAI underscores Saskatchewan's commitment to fostering innovation and expansion within its vital agricultural industry, paving the way for sustainable economic growth and job creation.
