Oil Infrastructure Investment Program (OIIP)
The Oil Infrastructure Investment Program (OIIP) offers transferable Crown royalty and freehold production tax credits for qualified projects at a rate of 20 per cent of eligible project costs.
Offered by Ministry of Energy and Resources
Amount
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)
Quick eligibility check
Who can apply
OIIP is open to new or expanded oil, refined petroleum product, natural gas liquids or carbon dioxide pipeline projects, including:
- Transmission pipelines.
- Feeder pipelines (including trunk and branch pipeline systems).
- Pipeline terminals.
- Enabling infrastructure investments that are directly linked and dedicated to an eligible project and are required to bring that project into service, may also be considered as eligible.
- Directly increases oil or carbon dioxide pipeline capacity in Saskatchewan – the ministry must be satisfied that the project results in an increase in pipeline capacity that is not considered to be a redundant service.
- Eligible costs – the eligible project must involve a minimum investment of CAD$10 million in eligible costs.
- Has not become operational before the eligible project application is submitted.
About the funding
The Oil Infrastructure Investment Program (OIIP) offers transferable Crown royalty and freehold production tax credits for qualified projects at a rate of 20 per cent of eligible project costs.
- 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, OIIP encourages multi-company projects as costs can be incurred by an entity other than the principal applicant.
- OIIP has 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).
- Credits can be claimed at a rate of 20 per cent of total credits in the first calendar year of operations, 30 per cent in the second calendar year, and 50 per cent in the third calendar year.
- OIIP can be used alongside other incentive and grant programs available in Saskatchewan.
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 |
| 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 Chemical Fertilizer Incentive (SCFI) | Tax Credit | 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 | Open |
| Saskatchewan Petroleum Innovation Incentive (SPII) | Tax Credit | 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) | Open |
