Saskatchewan Business Tax Credits, Incentives & Deductions (2025 Guide)
Saskatchewan’s business environment is supported by low general corporate tax rates (12% in 2025), a 0% small business tax rate up to $600,000 of active business income for CCPCs, and a suite of targeted tax credits and incentives. The province is a national leader in agriculture, natural resources, and innovation, and offers a range of unique programs to reward job creation, investment, and research. Whether you operate a corporation, partnership, farm, startup, or small business, understanding Saskatchewan’s unique provincial programs—alongside federal business incentives—can help you lower your tax burden, increase cash flow, and fuel your company’s success. This comprehensive guide covers every major Saskatchewan business credit, eligibility rule, and expert claim tip for 2025.
- What’s Covered: Corporate tax rates, major credits, grants, deductions, and Saskatchewan-specific incentives
- Who’s Eligible: Saskatchewan-registered corporations, small businesses, agri-business, manufacturers, tech startups, and more
- Quick Links: Directory, Related Topics
For federal programs, visit: Canada-Wide Business Credits
Saskatchewan Business Tax Credits Directory
Saskatchewan Small Business Deduction — In-depth guide to Saskatchewan’s reduced corporate tax rate on the first $600,000 of active business income for CCPCs, eligibility rules, rates, phased-out thresholds, and claim process. Tips for combining with the federal SBD.
Eligibility: Incorporated CCPCs with a permanent establishment in SK. Claim on SK428 and allocate the $600,000 limit among associated corporations. For 2025, the rate is 0% up to $600,000. Example: A SK CCPC with $500,000 in active business income pays $0 provincial tax on that portion.
Calculation: $500,000 x 0% = $0 SK tax. Income above $600,000 taxed at 12%. Innovation & R&D Tax Credits — Explains the Saskatchewan Research and Development Tax Credit (SR&ED), eligibility, claim tips, and how it stacks with the federal SR&ED program. Includes info on the Saskatchewan Technology Startup Incentive (STSI), what startups/investors need to know, and tips for maximizing innovation support.
Eligibility: SK corporations with eligible R&D, experimental development, or technology commercialization. Claimable on salaries, materials, and contracts. File federal T661 and SK Schedules. Example: A tech startup with $200,000 in R&D may recover over 40% via federal and SK credits combined. Agriculture, Value-Added & Processing Credits — Covers refundable and non-refundable tax credits for Saskatchewan agri-businesses, manufacturers, and processors. Includes the Agricultural Value-Added Tax Credit, Manufacturing & Processing Exporter Tax Incentive, and tips for leveraging CAP grants.
Eligibility: SK businesses in agriculture or agri-food processing, with new investment in facilities/equipment or new jobs. Example: A farm investing $1M in a value-added plant may claim a non-refundable credit plus accelerated CCA. See SK428 for claim process. Clean Tech, Green Investment & Manufacturing Credits — Directory for Saskatchewan Commercial Innovation Incentive (Patent Box), clean technology and energy grants, PST exemptions, accelerated CCA, and property tax incentives for green investment or manufacturing upgrades.
Eligibility: SK manufacturers, processors, and green tech firms with new equipment or innovation. Claim via SK Schedules, often with pre-approval. Example: A manufacturer installs solar and new line—receives PST exemption plus accelerated CCA and a property tax rebate. Hiring, Training & Apprenticeship Incentives — In-depth coverage of Saskatchewan hiring, co-op, apprenticeship credits, the Canada-Saskatchewan Job Grant, and employer tips for maximizing workforce incentives.
Eligibility: SK businesses hiring apprentices, co-op students, or upskilling workers. Claim wage subsidies, job grants, and SK Schedules for co-op credits. Example: An employer hiring two apprentices may recover $5,000+ in wage credits.
Eligibility: Incorporated CCPCs with a permanent establishment in SK. Claim on SK428 and allocate the $600,000 limit among associated corporations. For 2025, the rate is 0% up to $600,000. Example: A SK CCPC with $500,000 in active business income pays $0 provincial tax on that portion.
Calculation: $500,000 x 0% = $0 SK tax. Income above $600,000 taxed at 12%. Innovation & R&D Tax Credits — Explains the Saskatchewan Research and Development Tax Credit (SR&ED), eligibility, claim tips, and how it stacks with the federal SR&ED program. Includes info on the Saskatchewan Technology Startup Incentive (STSI), what startups/investors need to know, and tips for maximizing innovation support.
Eligibility: SK corporations with eligible R&D, experimental development, or technology commercialization. Claimable on salaries, materials, and contracts. File federal T661 and SK Schedules. Example: A tech startup with $200,000 in R&D may recover over 40% via federal and SK credits combined. Agriculture, Value-Added & Processing Credits — Covers refundable and non-refundable tax credits for Saskatchewan agri-businesses, manufacturers, and processors. Includes the Agricultural Value-Added Tax Credit, Manufacturing & Processing Exporter Tax Incentive, and tips for leveraging CAP grants.
Eligibility: SK businesses in agriculture or agri-food processing, with new investment in facilities/equipment or new jobs. Example: A farm investing $1M in a value-added plant may claim a non-refundable credit plus accelerated CCA. See SK428 for claim process. Clean Tech, Green Investment & Manufacturing Credits — Directory for Saskatchewan Commercial Innovation Incentive (Patent Box), clean technology and energy grants, PST exemptions, accelerated CCA, and property tax incentives for green investment or manufacturing upgrades.
Eligibility: SK manufacturers, processors, and green tech firms with new equipment or innovation. Claim via SK Schedules, often with pre-approval. Example: A manufacturer installs solar and new line—receives PST exemption plus accelerated CCA and a property tax rebate. Hiring, Training & Apprenticeship Incentives — In-depth coverage of Saskatchewan hiring, co-op, apprenticeship credits, the Canada-Saskatchewan Job Grant, and employer tips for maximizing workforce incentives.
Eligibility: SK businesses hiring apprentices, co-op students, or upskilling workers. Claim wage subsidies, job grants, and SK Schedules for co-op credits. Example: An employer hiring two apprentices may recover $5,000+ in wage credits.
Tip: The main Saskatchewan business credits and incentives require filing provincial schedules (SK428, SK479, SK S2, etc.) with your T2 corporate return. Some programs require pre-approval. Detailed records are essential for audit-proof claims.
Stacking Provincial & Federal Incentives: Practical Examples
- Small Business Deduction (SBD): Claim both Saskatchewan’s 0% SBD and the federal SBD on the same $500,000–$600,000 of active business income. Example: $600,000 in eligible income pays 0% SK tax and 9% federal (total $54,000, or 9% effective up to the limit).
- SR&ED R&D Credits: SK companies can claim federal SR&ED (up to 35% for CCPCs) and the SK R&D credit (10% non-refundable), stacking to >40% of eligible expenditures. Example: $200,000 of SR&ED-qualifying costs
= $70,000 (federal) + $20,000 (SK) = $90,000 total credit/refund. - Clean Tech/CCA: Accelerated CCA (federal) plus SK PST exemption and property tax incentives for green tech/manufacturing investments.
- Hiring/Training: Wage subsidies and co-op credits from both SK and the federal government can be combined for new hires, students, or apprentices.
Always check for expenditure overlap rules—most programs allow stacking, but you cannot double-claim the same cost on more than one line.
Frequently Asked Questions: Saskatchewan Business Credits
Who can claim Saskatchewan business tax credits?
SK-registered corporations, partnerships, and CCPCs with a permanent establishment in Saskatchewan can claim most credits. Some incentives extend to sole proprietors or partnerships if registered in SK.
How do I file for Saskatchewan credits?
Claim via the T2 corporate tax return with SK428, SK479, and any required SK schedules. Some programs (e.g., hiring grants, CAP) require separate applications or pre-approval.
Can I claim both federal and SK credits for the same expenditure?
Yes, most SK credits are designed to stack with their federal counterparts (e.g., SBD, SR&ED, hiring credits). You cannot double-claim the exact same expense on two provincial lines, but federal + provincial stacking is allowed.
What documentation do I need?
Keep detailed records: payroll, investment receipts, R&D logs, equipment invoices, contracts, and any application/pre-approval documents. Retain for 7 years in case of audit.