Saskatchewan Technology Startup Incentive (STSI)
$140,000.00
Tax Credit
Description:
STSI is designed to encourage investment in early-stage technology startups that bring new products to market and create jobs in Saskatchewan. The program offers a non-refundable 45% tax credit to Saskatchewan-based investors who invest in Eligible Technology Startup Businesses (ESBs). Tax credits are allocated on a first-come, first-served basis.
Comments on Funding:
An investor can earn up to $225,000 in tax credits per annual investment in an ESB and claim a maximum of $140,000 per tax year.
Rolling deadline
Eligibility:
Applicants must:
1. have fewer than 50 employees, including full-time, part-time, and contract workers. At least 50% of these employees must be based in Saskatchewan;
2. have its head office in Saskatchewan and be registered to carry on business in the province;
3. have not previously raised more than $5 million in equity capital; and,
4. be a technology-based startup with a novel technology for sale or applying existing technologies in a novel way to create a new product, service, or process. The technology must be digitally based – electronic systems, devices, and tools (hardware/software).
5. A startup is not eligible if its principal line of business is in the following areas:
a) Biotechnology and life sciences;
b) Food processing and value-added manufacturing (see here for related incentives).
Application Steps:
Once an Eligible Startup Business has finalized an investment with an Eligible investor, the following actions must occur:
1. Eligible Startup Businesses: Must submit a Tax Credit Certificate Application on behalf of their investors.
2. Limited Partnerships: Must submit a Tax Credit Certificate Application on behalf of their partners.
3. Venture Capital Corporations: Must submit a Tax Credit Certificate Application on behalf of their shareholders.
4. Tax Credit Certificate Applications and the required attachments must be submitted by email to stsi@innovationsask.ca.
Documentation Needed:
Applicants must submit:
1. a completed Tax Credit Certificate Application form;
2. additional information, as requested.
Other Things to Note:
About the author
Maurice
