Saskatchewan Clean Tech, Green Investment & Manufacturing Credits (2025 Guide)

Saskatchewan offers a range of targeted tax credits, incentives, and programs to support clean technology adoption, green business investment, and advanced manufacturing. These incentives are designed to lower your business tax burden, encourage innovation, and make Saskatchewan a leader in sustainable industry. Whether you’re investing in renewable energy, upgrading equipment, or launching a new manufacturing process, this guide explains your options for maximizing green and clean-tech support in the province.

Saskatchewan Commercial Innovation Incentive (Patent Box): Reduced corporate tax rate for income from eligible intellectual property (IP) developed in Saskatchewan.
Clean Tech & Green Grants: Provincial and federal grants and incentives for renewable energy, waste reduction, carbon capture, and more.
PST Exemptions: For qualifying clean-tech equipment, manufacturing machinery, and renewable energy investments.
Accelerated CCA: Enhanced depreciation for green equipment and clean energy property.
Property Tax Rebates: For new manufacturing or green investments in designated municipal areas.

Saskatchewan solar farm with wind turbines representing clean technology and renewable energy investment

Saskatchewan Commercial Innovation Incentive (SCII, Patent Box)

The SCII—often called the "Patent Box"—offers a reduced corporate tax rate of 6% (versus 12% standard) on income earned from eligible intellectual property (IP) developed and commercialized in Saskatchewan. Qualifying IP includes patents, plant breeders’ rights, and copyright-protected computer software.

Eligibility: Corporations doing business in Saskatchewan with eligible IP (patented inventions, software, etc.) developed via qualifying R&D activities carried out in the province.
Duration: Reduced rate applies for up to 10 years per eligible IP.
How to Apply: Pre-approval is required from the Ministry of Trade and Export Development. Detailed tracking of eligible income and R&D activities is necessary.
Tips: Coordinate with your R&D claim and keep robust records. SCII can be stacked with federal SR&ED and other innovation incentives.

Clean Tech Grants & Green Investment Incentives

Saskatchewan Value-Added Agriculture Incentive (SVAAI): Refundable tax credits for eligible investments in value-added agriculture processing, including clean technologies and energy efficiency upgrades.
Federal Clean Tech Grants: Programs like Sustainable Development Technology Canada (SDTC), Canada Infrastructure Bank, and NRCan offer non-repayable grants and loans to Saskatchewan-based projects.
Carbon Capture, Utilization & Storage (CCUS): Grants and credits for major industrial carbon-reduction and sequestration projects.
How to Claim: Most grant programs require pre-application and business/project plans. Check both provincial and federal opportunities frequently.

PST Exemptions for Clean-Tech & Manufacturing Equipment

Saskatchewan offers Provincial Sales Tax (PST) exemptions for the purchase of qualifying manufacturing, processing, and renewable energy equipment. This can significantly reduce the upfront cost of investing in green or advanced technology.

Eligibility: Equipment must be used directly in manufacturing, processing, or clean energy production (e.g., solar panels, wind turbines, advanced automation, pollution control).
How to Claim: Provide proof of use and apply for exemption at point of sale or via post-purchase refund with Saskatchewan Ministry of Finance.

Accelerated Capital Cost Allowance (CCA)

Businesses investing in clean technology or manufacturing equipment may claim accelerated CCA (depreciation), allowing you to write off a larger portion of eligible assets in the first year(s). This boosts cash flow and reduces taxable income.

Eligible Assets: Class 43.1/43.2 (clean energy generation), Class 53 (manufacturing/processing equipment), and certain green building investments.
How to Claim: Enter on your federal/provincial T2 return and claim the accelerated rate per CRA/Finance rules.

Property Tax Rebates & Municipal Green Incentives

Property Tax Rebates: Some Saskatchewan municipalities offer property tax holidays or rebates for new manufacturing, green technology, or energy-efficiency investments. Check with your local Economic Development office for available programs.
Utility Incentives: SaskPower and SaskEnergy may offer cash rebates for implementing energy-conserving upgrades or renewable systems in commercial buildings.

FAQ: Saskatchewan Clean Tech Credits

Can I stack Saskatchewan clean tech incentives with federal grants?

Yes, most provincial credits and grants can be combined with federal programs such as SR&ED, SDTC, or NRCan funding. Ensure you do not claim the same expense twice and coordinate applications for the best cash flow impact.

Does the SCII "Patent Box" apply to all IP income?

No, only income from eligible IP developed via Saskatchewan-based R&D. The program excludes IP acquired from outside Saskatchewan and certain contract research. Pre-approval and annual tracking are required.

What records do I need for PST exemptions and CCA?

Keep invoices, proof of use, and technical documentation for all equipment purchases. For CCA, maintain a capital asset ledger and support your claim with receipts and business-use rationale.