Sask. unveils new tax credit to help small and medium-sized businesses

The Government of Saskatchewan is introducing a new tax credit for small and medium-sized businesses.

The credit, which will be available during a three-year pilot, is designed to provide a boost to businesses in the food and beverage manufacturing, machinery and transport sectors.

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The program offers a 45 per cent non-refundable tax credit for individuals or corporations investing in the equity of an eligible enterprise. The province set an annual cap of $7 million, and said applications will be processed on a first-come, first-served basis.

Eligible businesses must be based in Saskatchewan, and employ between five and 49 people, “with a minimum of 50 per cent of those employees residing in Saskatchewan.”

“Small and medium-sized businesses are foundational for the strength of our provincial economy, during a time when increasing local investment is more important than ever,” Warren Kaeding, Saskatchewan’s minister of trade and export development, said in a statement.

“With this new incentive, more small and medium-size businesses will be able to build equity, allowing them to grow, which leads to more jobs for our growing workforce.”

The program will begin accepting applications late this year, the provincial government said, and will run until 2028.