Tax incentive programs for the manufacturing and processing
sector in Saskatchewan consist of the Manufacturing and Processing
Profits Tax Reduction and the Manufacturing and Processing Investment
Tax Credit. Both programs apply to firms in the manufacturing and
processing industries.
The Manufacturing
and Processing Profits Tax Reduction reduces the provincial general
corporate income tax rate to as low as 10% on Canadian manufacturing
and processing profits. This incentive is claimed on schedule
404 on the federal T2 Corporation Income Tax return. Saskatchewan-based
firms with a high allocation of income to Saskatchewan receive
a larger tax reduction than firms with a low allocation of income.
The Canada Revenue Agency
administers this program.
The Manufacturing
and Processing Investment Tax Credit is designed to encourage
plant and equipment investment for use in manufacturing and processing
activities in Saskatchewan. The Investment Tax Credit applies
as a percentage of the total capital cost of eligible building
and machinery and equipment purchases. The 2006 Budget announced
the conversion of this incentive from a non-refundable tax credit
into a refundable tax credit for eligible capital acquisitions
occurring after April 6, 2006. Unclaimed tax credit balances earned
prior to
April 7, 2006 will have their carry forward period extended
from seven to ten years.
The Investment
Tax Credit on new equipment is claimed on schedule 402 on the
federal T2 Corporation Income Tax return and is administered by
the Canada Revenue Agency
. The Investment
Tax Credit on used equipment is administered by Saskatchewan Finance
as a rebate program. Applications for the rebate are available
in the "Forms" section below.
Tax Information
Bulletins can be accessed below:
- Bulletin
Index: a listing of all bulletins, available in html and
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©2006
