Saskatchewan Commercial Innovation Incentive (SCII)
The Saskatchewan Commercial Innovation Incentive (SCII or 'Patent Box') is a new-growth tax incentive that offers eligible corporations a reduction of the provincial Corporate Income Tax Rate (CIT) to six per cent for 10 consecutive years for eligible corporations that commercialize their qualifying intellectual property in Saskatchewan.
This new growth tax incentive is open to any company, operating in any sector, from anywhere in the world, regardless of where or when the R&D for the qualifying intellectual property occurred.
Offered by Ministry of Trade and Export Development
Amount
Reduction of the provincial Corporate Income Tax Rate (CIT) to six per cent for 10 consecutive years, extendable to 15 years if at least 50 per cent of the related R&D occurred and was conducted in Saskatchewan
Quick eligibility check
Who can apply
This new growth tax incentive is open to any company, operating in any sector, from anywhere in the world, regardless of where or when the R&D for the qualifying intellectual property occurred.
Applicants may directly own the intellectual property or hold a recognized licence for the intellectual property and/or the related goods, services or processes.
To qualify for the program, an applicant must meet the following requirements:
- Own or license qualifying intellectual property that is linked to the commercialization of new goods, services, or processes in Saskatchewan. The qualifying IP/good(s), service(s), and process(es) must meet one of the following definitions:
- The proposed innovation has no equivalent in the Canadian marketplace or is an exceptional advance on the current state of the art in Canada;
- AND/OR
- The proposed innovation has unique features and benefits that offer exceptional differentiation from current competitive offerings in the Canadian marketplace and is sufficiently unique that the potential exists to create a competitive advantage or create a new market niche.
- Establish/identify an eligible corporation where the only sources of revenue are related to the commercialization of the qualifying intellectual property.
- Once an eligible corporation successfully completes the SCII scientific and sole corporation eligibility process, the Ministry of Trade and Export Development will issue a SCII Eligibility Certificate. The corporation can then submit the SCII Certificate to the Ministry of Finance at a time of its choosing to begin claiming its 10- or 15-year corporate income tax rebate benefit period.
About the funding
The Saskatchewan Commercial Innovation Incentive (SCII or 'Patent Box') is a new-growth tax incentive that offers eligible corporations a reduction of the provincial Corporate Income Tax Rate (CIT) to six per cent for 10 consecutive years for eligible corporations that commercialize their qualifying intellectual property in Saskatchewan. Companies can extend the benefit period to 15 years if at least 50 per cent of the related research and development (R&D) in advance of commercialization occurred and was conducted in Saskatchewan.
In addition to receiving a reduced corporate income tax rate of six per cent, eligible corporations will be entitled to:
- Choose when to begin the tax rebate period;
- Claim any other eligible tax incentive or grant Saskatchewan may offer without impacting SCII eligibility or impairing the ability to claim the SCII tax rebate; and
- Extend the SCII tax rebate terms to eligible cascading or forking* goods, services and processes.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| Saskatchewan Research and Development (R&D) Tax Credit | Tax Credit | 10 per cent refundable R&D tax credit for the first $2 million in annual qualifying expenditures by Saskatchewan CCPCs (on or after December 16, 2024) | Open |
| Investment Tax Credits (ITC) on Qualified Expenditures for Scientific Research and Experimental Development (SR&ED) | Tax Credit | Non-refundable ITC of 15% of the SR&ED qualified expenditure pool | Open |
| Scientific Research and Experimental Development Tax Incentive Program (SR&ED) | Tax Credit | Investment tax credit at a basic rate of 15% | Open |
