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
This grant is specifically available for value-added agriculture facilities located in the province of Saskatchewan. Eligible facilities must be situated within this provincial boundary to qualify for the incentive.
- Facilities located in the province of Saskatchewan, Canada.
grant_single|admissibleProjectsExample
$2,850,000
Establish a new state-of-the-art soybean processing facility
$1,950,000
Expand an existing oat milling operation to increase capacity
$2,700,000
Establish a pea protein processing plant to meet growing market demand
$2,100,000
Create a cannabis oil processing facility to boost product offerings
$2,250,000
Build a new malt production facility to support the local craft brewing industry
$1,650,000
Expand flaxseed milling operations to meet export demands
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
Eligible applicants are companies involved in the construction or expansion of value-added agricultural facilities in Saskatchewan with at least $10 million in new capital expenditures. These facilities must physically transform or upgrade primary agricultural products or byproducts into new or upgraded products to increase productive capacity.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
Eligible expenses for the Saskatchewan Value-added Agriculture Incentive include the capital expenditures necessary for newly constructed or expanded value-added agriculture facilities.
- New capital expenditures totaling $10 million or more aimed at increasing productive capacity.
grant_single_labels|register
Here are the steps to submit an application for the Saskatchewan Value-added Agriculture Incentive (SVAI):
- Step 1: Application for Conditional Approval
- Prepare and submit the SVAI – Application for Conditional Approval form.
- Refer to the SVAI – Program Overview and Application Instructions for guidance.
- Contact svai@gov.sk.ca if you have any questions regarding the application process.
- Step 2: Conditional Approval
- Receive a letter conditionally approving the investment project if preliminary eligibility requirements are met.
- Step 3: Request for Certificate of Eligibility
- Upon completion of the investment project, submit the SVAI – Request for Certificate of Eligibility.
- Include all required attachments as specified in the application instructions.
- Step 4: Issuance of Certificate of Eligibility
- The Ministry of Trade and Export Development will issue a SVAI Certificate of Eligibility if the program requirements are met.
- The certificate confirms the eligible capital expenditures for claim purposes.
- The issuance of the Certificate of Eligibility initiates the 10-year rebate period.
- Step 5: File Corporate Income Tax (CIT) Return
- File the T2 CIT return with the Canada Revenue Agency (CRA).
- Await the T2 Notice of Assessment or Reassessment from the CRA.
- Step 6: Submit SVAI Claim Form
- Complete the SVAI Claim Form for each year the rebate is claimed.
- Submit the completed Claim Form to the Ministry of Finance.
- Include the SVAI Certificate of Eligibility and the current year's Notice of Assessment or Reassessment with your submission.
- Step 7: Receipt of Rebate or Determination
- The Ministry of Finance will verify the Claim Form.
- A rebate will be calculated in accordance with the program legislation or a written notice will be provided if the corporation is not entitled to the rebate.
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
Boosting Agricultural Innovation in Saskatchewan
The Saskatchewan Value-added Agriculture Incentive (SVAI) is a specialized tax credit designed to support large-scale capital investments in new or expanded value-added agricultural facilities. By providing a scalable tax offset, it encourages economic growth within the province's agricultural sector.
Detailed Overview of the Saskatchewan Value-added Agriculture Incentive (SVAI)
The SVAI represents a strategic initiative by the Government of Saskatchewan to enhance the province's agricultural sector by financially incentivizing the development of infrastructure that enhances value through the transformation of raw agricultural products. Spearheaded by the Ministry of Trade and Export Development, this incentive targets significant capital investments—those valued at $10 million or more—in new constructions or expansions of facilities dedicated to the value-added processing of agricultural commodities.
The incentive operates on a graduated tax credit scheme, offering a 15% credit on capital expenditures up to $400 million, increasing to 30% for expenditures between $400 million and $600 million, and maximized at a 40% credit for those surpassing $600 million. Importantly, a single project can claim a maximum total incentive of $250 million, which underscores the significant support the program offers to the sector's growth.
Eligible participants include a wide range of agricultural processing activities that physically transform basic agricultural products into finished goods or significantly upgraded materials. The SVAI aims to bolster facilities such as pea protein processors, oat milling operations, malt production facilities, and cannabis oil processors, thus diversifying and strengthening Saskatchewan's role in the agriculture economy.
Once approved, the tax credits can be applied against corporate income tax over a flexible period of three to ten years, encouraging long-term investment and financial planning. The redemption is strategically structured, allowing claimants to offset 20% in the first year, 30% in the second year, and 50% in the third year, with any remaining credit carriable for up to ten years, offering robust financial relief for continuous reinvestment and growth.
Moreover, this program is designed to be comprehensive and complementary, allowing businesses to capitalize on other Saskatchewan tax incentives or grants without impacting their eligibility for the SVAI, thus maximizing the financial advantages available to them. This encourages the agricultural sector to innovate and expand without the financial constraints that often hinder large-scale industrial projects.
The application process for the SVAI is detailed yet structured to provide transparency and clarity. Interested businesses must initially submit the "SVAI - Application for Conditional Approval" and meet the eligibility criteria established by the program guidelines. Certification from a qualified third-party ensures that the capital expenditures contribute to an increase in productive capacity, aligning with the program’s objectives.
Once conditional approval is granted and upon the project's completion, applicants must then proceed to gain a "Certificate of Eligibility." This involves the submission of the "SVAI – Request for Certificate of Eligibility," detailing the capital expenditures and how they meet the program’s rigorous standards.
The tax rebate initiation is aligned with the corporate tax cycle, requiring the filing of the T2 corporate income tax return with the Canada Revenue Agency followed by submission to the Ministry of Finance using the "SVAI Claim Form." This ensures that the benefits of the SVAI are accessible and seamlessly integrated into the recipient's financial and operational planning.
By facilitating this structured financial support through an optimized tax credit scheme, the SVAI not only amplifies industrial capacity and efficiency but also positions Saskatchewan as a leader in value-added agricultural innovation. This strategy aligns with broader economic goals of sustainable development and competitiveness in global markets.
