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 1, 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|terms_and_conditions
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.
grant_single_labels|projects
This grant supports projects involving the creation or expansion of value-added agriculture facilities in Saskatchewan. Eligible activities focus on the transformation or upgrading of agricultural products to increase production capacity.
- Construction of new facilities for pea protein processing.
- Expansion of oat milling operations.
- Development of malt production facilities.
- Establishment of cannabis oil processing plants.
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
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.
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
