Manufacturing & Processing Investment Tax Credit

The Saskatchewan Investment Tax Credit (ITC) for Manufacturing and Processing (M&P) is available to all M&P corporations filing a T2 Corporation Income Tax Return (schedule 402) with some allocation of taxable income to Saskatchewan. The credit was introduced as a non-refundable income tax credit designed to encourage plant and equipment investment for use in M&P activities in Saskatchewan. The ITC is determined as a percentage of the total capital cost of eligible new and used M&P building, machinery and equipment purchases made during the year, including installation costs. The ITC rate will depend on the acquisition date of the eligible property.

The 2006 Budget announced the conversion of the ITC into a refundable tax credit for all eligible capital acquisitions occurring after April 6, 2006. Unused non-refundable ITC balances earned prior to April 7, 2006 can be carried forward for up to ten taxation years.