Saskatchewan Value-added Agriculture Incentive (SVAI)
$250,000,000
Tax Credit
Description:
The Saskatchewan Value-added Agriculture Incentive (SVAI) is a non-refundable, non-transferable tax credit on capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan.
Comments on Funding:
1. The SVAI utilizes a graduated tax credit structure for rebates, as follows:
– 15% tax credit on expenditures up to 400M;
– 30% tax credit on expenditures between $400M and $600M; and
– 40% tax credit on expenditures exceeding $600M.
2. The total incentives to be claimed by any single project is $250M.
Continuous Intake until December 31, 2027
Eligibility:
Applicants must:
1. be companies having capital expenditures valued at $10 million or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan.
2. be issued an SCFI Eligibility Certificate.
Application Steps:
Applicants must:
1. prepare and submit the SVAI – Application for Conditional Approval.
Conditional Approval describes:
• the value-added agriculture 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 SVAI – Program Overview and Application Instructions or contact svai@gov.sk.ca;
2. receive a letter conditionally approving the investment project, if your application meets the preliminary eligibility requirements;
3. submit the SVAI – 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 a SVAI Certificate of Eligibility stating the eligible capital expenditures to claim.
5. The taxation year that the Certificate of Eligibility is issued initiates the applicant’s 10-year rebate period to claim the SVAI.
6. To initiate the rebate period, file the 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 SVAI Claim Form and submit it to the Ministry of Finance, including a copy of the:
a) The SVAI Certificate of Eligibility, as issued by the Ministry of Trade and Export Development; and
b) Current year Notice of Assessment or Reassessment.
A claim form will need to be submitted for each year that the rebate is claimed.
7. The Ministry of Finance will verify the Claim Form 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 SVAI Claim Form;
2. the SVAI Certificate of Eligibility, as issued by the Ministry of Trade and Export Development;
3. the current year Notice of Assessment or Reassessment;
4. additional information, as requested.
Other Things to Note:
1. The SVAI is administered by the Ministry of Trade and Export Development.
2. The program is effective September 1, 2017 and is scheduled to sunset December 31, 2027.
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Maurice
