Saskatchewan Value-added Agriculture Incentive (SVAI)
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.
Offered by Ministry of Trade and Export Development
Amount
Non-refundable tax credit on capital expenditures of $10 million or more: 15 per cent on expenditures up to 400M, 30 per cent on expenditures between $400M and $600M, and 40 per cent on expenditures exceeding $600M; total incentives claimed by any single project is $250M
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Who can apply
Value-added agriculture is defined as: The physical transformation or upgrading of any raw/primary agricultural product(s) or any agricultural byproduct or waste into a new or upgraded product.
- Qualifying projects include new and existing value-added agricultural facilities. To be eligible, the project must have $10 million in new capital expenditures, demonstrate the expenditures were made for the purposes of increasing productive capacity, and meet the program's definition of value-added agriculture activity. Potential examples include pea protein processors, oat milling operations, malt producers, and cannabis oil processing facilities.
- To qualify for the incentive, applicants will be required to provide certification from a qualified third party confirming that the eligible capital expenditures resulted in an increase in productive capacity.
About the funding
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.
The SVAI utilizes a graduated tax credit structure for rebates, as follows:
- 15 per cent tax credit on expenditures up to 400M;
- 30 per cent tax credit on expenditures between $400M and $600M; and
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- 40 per cent tax credit on expenditures exceeding $600M.
The total incentives to be claimed by any single project is $250M.
Companies apply the credit against corporate income tax (CIT) paid and are able to claim the credit over a three- to 10-year period once the new or expanded facility is brought into operation.
Redemption of the credits are limited to 20 per cent in year one, 30 per cent in year two, and 50 per cent in year three, following the taxation year in which a Certificate of Eligibility is issued. Remaining amounts can be carried forward for up to 10 years.
In addition to reducing the tax paid based on a percentage of qualifying capital expenditures, eligible applicants will be entitled to claim any other eligible tax incentive or grant Saskatchewan may offer without impacting SVAI eligibility or impairing the ability to claim the SVAI tax credit.
To be eligible, the project must have $10 million in new capital expenditures, demonstrate the expenditures were made for the purposes of increasing productive capacity, and meet the program's definition of value-added agriculture activity.
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| 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 Mineral Exploration Tax Credit (SMETC) | Tax Credit | Tax credit of 45 per cent to 60 per cent (30 per cent provincial and 15 per cent to 30 per cent federal) | Open |
| 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 |
