Saskatchewan Chemical Fertilizer Incentive (SCFI)
No fixed amount
Tax Credit
Description:
The Saskatchewan Chemical Fertilizer Incentive (SCFI) is a non-refundable, non-transferable 15% tax credit on capital expenditures valued at $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 three- to 10-year period once the new or expanded facility is brought into operation.
Eligible chemical fertilizer production is defined as: All processing of mineral and chemical feedstock to create single or multi-nutrient synthetic fertilizer products. This definition excludes facilities that manufacture potash fertilizer products for which potash is the primary feedstock.
Comments on Funding:
Continuous Intake until December 31, 2026
Eligibility:
Applicants must:
1. be companies that have newly constructed or expanded eligible chemical fertilizer production facilities in Saskatchewan;
2. have qualifying projects that include new and existing eligible chemical fertilizer production facilities, including:
a) the project must have $10 million in new capital expenditures,
b) the project must demonstrate the expenditures were made for the purposes of increasing productive capacity and meet the program’s definition of eligible chemical fertilizer production.
3. be issued an SCFI Eligibility Certificate.
Application Steps:
Applicants must:
1. prepare and submit the the SCFI – Application for Conditional Approval.
Conditional Approval, which describes:
• the chemical fertilizer activity to be undertaken,
• the anticipated capital expenditures to be made, and
• where the project is an expansion to an existing facility, the increase that will be made to productive capacity.
If they have questions about the application process, refer to the SCFI – Program Overview and Application Instructions or contact scfi@gov.sk.ca;
2. receive a letter conditionally approving the investment project, if your application meets the preliminary eligibility requirements;
3. submit the SCFI – Request for Certificate of Eligibility and required attachments, following completion of the investment project;
4. If the corporation meets the program requirements, the Ministry of Trade and Export Development will provide them with the SCFI Eligibility Certificate stating the eligible capital expenditures to claim;
5. Following the taxation year that the Certificate of Eligibility is issued, the applicant has 10 years to claim the SCFI.
6. To initiate the rebate period, file the corporation’s T2 CIT with the Canada Revenue Agency (CRA). Once the CIT return has been assessed and a T2 Notice of Assessment from the CRA has been received, complete the SCFI Claim Form and submit it to the Ministry of Finance, including a copy of the:
a) SCFI Eligibility Certificate, as issued by the Ministry of Trade and Export Development;
b) Current year T2 corporation income tax return; and
c) Current year Notice of Assessment or Reassessment.
A rebate application will need to be submitted for each year that the rebate is claimed.
7. The Ministry of Finance will verify the rebate application and provide:
a) A rebate calculated in accordance with the program legislation; or
b) A written notice indicating that the corporation is not entitled to the rebate and the reasons for the determination.
Documentation Needed:
Applicants must submit:
1. a completed SCFI Claim Form;
2. the SCFI Eligibility Certificate, as issued by the Ministry of Trade and Export Development;
3. the current year T2 corporation income tax return;
4. the current year Notice of Assessment or Reassessment;
5. additional information, as requested.
Other Things to Note:
1. The SCFI is administered by the Saskatchewan Ministry of Trade and Export Development.
2. Companies apply the benefit against corporate income tax (CIT) owing and are able to claim the benefit over a three- to 10-year period once the new or expanded facility is brought into operation.
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Maurice
