Saskatchewan Petroleum Innovation Incentive (SPII)
The Saskatchewan Petroleum Innovation Incentive (SPII) offers transferable Crown royalty and freehold production tax credits for qualified innovation commercialization projects at a rate of 25 per cent of eligible project costs. The program targets a broad range of innovations deployed across all segments of Saskatchewan’s oil and gas industry.
Offered by Ministry of Energy and Resources
Amount
Transferable Crown royalty and freehold production tax credits at a rate of 25 per cent of eligible project costs, with a project-specific awarded credit cap of CAD$5 million (i.e., a maximum of up to CAD$20 million in recognized eligible costs per project)
Quick eligibility check
Who can apply
- Eligible Innovation – In order for a product, service, process, or operation to be considered an eligible innovation, it must be assessed at a minimum of Level 7 on the SPII Technology Readiness Level Scale. If it satisfies the SPII Technology Readiness Level, the innovation must also satisfy one of the following criteria:
- The project can clearly be demonstrated to be new to Saskatchewan’s oil and gas industry. This means an innovation must be the first-of-its-kind in Saskatchewan’s oil and gas industry or it must be a significant advancement on the current state of the art in terms of concept, function or design, relative to other similar innovations deployed in Saskatchewan’s oil and gas industry.
- The eligible project can be clearly demonstrated to be at a new and significantly different commercial scale that has no technical equivalent in Saskatchewan’s oil and gas industry. The eligible project also possesses unique features and/or benefits that offer significant differentiation from current competitive offering in the Saskatchewan marketplace, and the project itself poses new and significant technical challenges as a result of deploying the innovation at this unmatched scale.
- Eligible Activity – the eligible innovation must be applied in a project of which the aim is:
- To improve oil and gas recovery;
- To manage adverse environmental impacts;
- To increase value-added processing capacity; or
- To commercialize oil and gas production byproducts or waste.
- Eligible Costs – the eligible project must involve a minimum of CAD$1 million in eligible capital and operating costs.
- The project must not be commercially operational prior to submitting an application to the Ministry of Energy and Resources.
About the funding
The Saskatchewan Petroleum Innovation Incentive (SPII) offers transferable Crown royalty and freehold production tax credits for qualified innovation commercialization projects at a rate of 25 per cent of eligible project costs.
When undertaking an innovative pilot, market validation or commercial scaling project across any segment of Saskatchewan’s oil and gas industry, eligible projects have the ability to redeem 25 per cent of their eligible capital and operating costs. These credit redemptions can even occur during the construction and operational phases of a project to help improve a company’s cash flow.
- The credits are fully transferable, which gives non-producers/non-royalty payers an opportunity to benefit from the program, because they have the ability to transfer credits to oil, gas and helium Crown royalty and freehold production tax payers. Also, SPII encourages multi-company projects as costs can be incurred by a firm other than the principal applicant.
- SPII has a project-specific awarded credit cap of CAD$5 million (i.e., a maximum of up to CAD$20 million in recognized eligible costs per project).
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Oil and Gas Processing Investment Incentive (OGPII) | Tax Credit | Transferable crown royalty and freehold production tax credits at a rate of 15 per cent of eligible program costs, with a project-specific awarded credit cap of CAD$75 million | Open |
| Oil Infrastructure Investment Program (OIIP) | Tax Credit | Transferable Crown royalty and freehold production tax credits at a rate of 20 per cent of eligible project costs, with a project-specific awarded credit cap of CAD$40 million (i.e., a maximum of up to CAD$200 million in recognized eligible costs per project) | Open |
| Accelerated Investment Incentive | Tax Credit | no fixed amount | Open |
| Air Quality Improvement Tax Credit | Tax Credit | no fixed amount | Open |
