Saskatchewan Chemical Fertilizer Incentive (SCFI)
The Saskatchewan Chemical Fertilizer Incentive (SCFI) is a non-refundable, non-transferable 15 per cent tax credit on capital expenditures of $10 million or more for newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan.
Companies apply the benefit against corporate income tax (CIT) owing and are able to claim the benefit over a 10-year period once the new or expanded facility is brought into operation.
Offered by Ministry of Trade and Export Development
Amount
Non-refundable, non-transferable 15 per cent tax credit on capital expenditures of $10 million or more for newly constructed or expanded eligible chemical fertilizer production facilities, claimed over a 10-year period
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Who can apply
Eligible chemical fertilizer production is defined as all processing of mineral and chemical feedstock to create single or multi-nutrient synthetic fertilizer products.
- Qualifying projects include new and existing eligible chemical fertilizer production facilities. To be eligible, the project must have $10 million in new capital expenditures, demonstrate the expenditures were made for the purposes of increasing productive capacity and meet the program's definition of eligible chemical fertilizer production.
- In order to qualify for the incentive, applicants will be required to provide certification from an independently qualified third party confirming that the eligible capital expenditures resulted in an increase in productive capacity.
The program is effective as of November 1, 2017, to accommodate projects that have been initiated.
About the funding
The Saskatchewan Chemical Fertilizer Incentive (SCFI) is a non-refundable, non-transferable 15 per cent tax credit on capital expenditures of $10 million or more for newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan.
Companies apply the benefit against corporate income tax (CIT) owing and are able to claim the benefit over a 10-year period once the new or expanded facility is brought into operation.
Upon the commissioning of a new or expanded facility, companies apply the benefit against CIT owing and are able to claim the benefit over a 10-year period. Redemption of the benefits is limited to 20 per cent in year one after the facility enters operation, 30 per cent in year two and 50 per cent in year three. Remaining amounts can be carried forward for up to 10 years following the issuance of the Certificate of Eligibility. In addition to receiving a tax paid equal to 15 per cent of qualifying capital expenditures, eligible applicants may:
- Apply for the SCFI Certificate of Eligibility no later than December 31, 2034, with December 31, 2044, being the last eligible taxation year in which the tax credit may be claimed;
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- Initiate the 10‑year redemption period upon issuance of the SCFI Certificate of Eligibility, with claims required to be submitted within the first three years; and
- Claim any other eligible tax incentive or grant Saskatchewan may offer without impacting SCFI eligibility or impairing the ability to claim the SCFI tax credit.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Corporation Income Tax Rebate for Primary Steel Production | Rebate, Tax Credit | 100% of the incremental Saskatchewan Corporation Income Tax for each of the first two years, 75% for the third year, 50% for the fourth year and 25% for the fifth year of a five-year rebate period | Open |
| Saskatchewan Value-added Agriculture Incentive (SVAI) | Tax Credit | Non-refundable tax credit on capital expenditures of $10 million or more: 15 per cent on expenditures up to 400M, 30 per cent on expenditures between $400M and $600M, and 40 per cent on expenditures exceeding $600M | Open |
| Saskatchewan Mineral Exploration Tax Credit (SMETC) | Tax Credit | Tax credit of 45 per cent to 60 per cent (30 per cent provincial and 15 per cent to 30 per cent federal) | Open |
| 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 |
