Saskatchewan Value-added Agriculture Incentive
Overview
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
At a glance
Funding available
- Integrate new technologies
- Optimize production processes
- Renovate your business/factory
- Up to 15% of project cost
- Open Date : September 1, 2017
Eligible candidates
- Agriculture, forestry, fishing and hunting
- Manufacturing
- Saskatchewan
- For-profit business
- All revenue ranges
- All organization sizes
- Startups
Activities funded
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.
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 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.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.
How to apply
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.
Conditional Approval
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.
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.
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.
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.
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.
Additional information
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.
