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Manufacturing & Processing Investment Tax Credit Saskatchewan

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Get back up to 6% of qualifying new or used manufacturing and processing equipment costs in Saskatchewan. This is a refundable tax credit claimed at tax time. You can benefit even in a low-profit year.

Know a business owner this could help?

At a glance

Maximum supportRefundable tax credit for expenditures on qualifying machinery and equipment made available for use in Saskatchewan: credit earned at 6% for property acquired on or after March 23, 2017 (5% for property acquired before March 23, 2017). New-equipment credit administered by CRA (Schedule 402 with the T2 return); used-equipment credit (PST paid) administered by the Saskatchewan Ministry of Finance by direct application.
Issued byGovernment of Saskatchewan, Ministry of Finance
Administered byCanada Revenue Agency (for new equipment); Ministry of Finance, Revenue Division (for used equipment).
RegionSaskatchewan

Subject to program rules, available funding, and approval. Confirm current details with the official program administrator.

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Is this for you?

  • You are a corporation engaged in manufacturing or processing within Saskatchewan.
  • You are purchasing qualifying new or used equipment for your business operations.
  • You have paid PST on used equipment purchases and can provide proof of payment.

Probably not the right fit if

  • You are a sole proprietorship, partnership, or any non-corporate entity.
  • Your business is not in the manufacturing or processing sector.
  • Your business is located outside of Saskatchewan.

How much you'd realistically get

6% of qualifying new or used manufacturing and processing equipment costs (5% for property acquired before March 23, 2017). The official page lists no maximum amount.

What may be supported

  • Purchase of qualifying new manufacturing or processing equipment
  • Purchase of qualifying used manufacturing or processing equipment where PST was paid

How applying works

Effort: moderateYou must prepare and file specific schedules with your T2 return or submit a detailed application package with invoices and financial statements.

  1. 01Determine if your equipment is new or used.
  2. 02For new equipment: Complete Schedule 402 and include it with your annual T2 Corporate Income Tax Return.
  3. 03For used equipment: Gather purchase invoices, financial statements, T2 return, and PST payment proof.
  4. 04Submit the Manufacturing and Processing Investment Tax Credit on Used Equipment application to the Ministry of Finance, Revenue Division.
  5. 05Confirm specific credit amounts and deadlines on the official page.

Who to ask: Inquiry Centre Toll Free Phone 1-800-667-6102; Email SaskTaxInfo@gov.sk.ca

Documents commonly required

  • Completed Schedule 402 (for new equipment)
  • Purchase invoices
  • Financial statements
  • T2 Corporation Income Tax Return
  • Documentation verifying PST was paid (for used equipment)

What to know before you count on it

  • This is a tax credit claimed on your corporate return, not an upfront grant. The money arrives after you file.
  • Used equipment claims require strict documentation proving PST was paid.
  • The program is strictly for manufacturing and processing corporations.
  • Check how the credit applies to your purchase before you buy.

What are your odds?

Approval depends on meeting strict corporate and equipment eligibility criteria; confirm specifics on the official page.

Frequently asked questions

Who administers this credit?

The CRA administers claims for new equipment via the T2 return. The Ministry of Finance, Revenue Division administers claims for used equipment.

What documents are needed for used equipment?

You need purchase invoices, financial statements, your T2 Corporation Income Tax Return, and proof that PST was paid on all taxable items.

Is this available for sole proprietors?

No, it is strictly for manufacturing and processing corporations.

More funding by what it pays for

Funding for Export and New Markets

Grants and loans that may help pay for trade shows, research and translation.

Funding for Manufacturing

Grants and loans that may help pay for automation and productivity tools.

What you can combine it with

This credit is related to Saskatchewan's Manufacturing and Processing Exporter Tax Incentives. Check whether you qualify for both.

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Worth reading before you apply

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Page last updated ; status and deadline checked . Source: official program page.