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        Saturday, July 22, 2017
Minister of Finance

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. It is designed to encourage plant and equipment investment for use in M&P activities in Saskatchewan.  The ITC applies 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. 


Since 2006, the M&P ITC has been a refundable tax credit, meaning a corporation can receive a rebate for ITCs that exceed the corporation’s Saskatchewan CIT liability in a particular taxation year. 


The percentage rate of the ITC parallels the rate of the Saskatchewan Provincial Sales Tax (PST).  Therefore, for eligible purchases made after October 27, 2006 and before March 23, 2017 the ITC is equal to 5 per cent of the total capital cost of the asset.  For eligible purchases made on or after March 23, 2017, the ITC is equal to 6 per cent of the total capital cost of the asset.

 

The Revenue Division has prepared bulletins to help explain how the Manufacturing and Processing Profits Tax Reduction, Investment Tax Credit, and Exporter Tax Incentive are applied in specific situations.

Download and print Manufacturing & Processing Incentives forms.

Find out what equipment qualifies, where to send your application and more. 

Related Links

Schedule 402



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