Saskatchewan Budget 2024: Nurturing Growth and Innovation

Saskatchewan’s Finance Minister Donna Harpauer unveiled the province’s fiscal plan for the year 2024-25, marking her final budget announcement before stepping down from office. Despite projecting a deficit of $273.2 million for the upcoming fiscal year, Harpauer expressed conviction in the budget’s direction, emphasizing its alignment with the priorities of her caucus colleagues and the premier. Under the theme “Classrooms, Care, and Communities,” the budget emphasizes substantial investments in key areas such as health, education, and infrastructure projects.

Harpauer highlighted the government’s commitment to reinvesting in these vital sectors to address the challenges posed by Saskatchewan’s growing population, projected to reach 1.25 million. Although a return to balance is forecasted by 2025-26, with a projected $18-million surplus for the next fiscal year, Harpauer acknowledged the budget as a reflection of the province’s current needs and priorities. In this blog, we cover the business funding takeaways from the Saskatchewan budget release and evaluate how it will shape the upcoming year for small and medium businesses alike.

For more budget information, visit our Federal and Provincial Budget 2024 page and find the latest business funding updates on the upcoming budgets.

Saskatchewan Prioritizes Small Businesses

The Small Business Tax Rate

The Small Business Tax Rate plays a crucial role in fostering entrepreneurship and supporting small businesses in Saskatchewan. By maintaining the current rate of 1% until June 30, 2025, and keeping the threshold for eligible business income at $600,000, Saskatchewan commits to providing a competitive tax environment for small businesses.

Continued Tax Relief: The budget confirms the continuation of the Small Business Tax Rate at 1%, offering relief to small businesses and allowing them to retain more of their earnings for reinvestment and growth. This stable tax environment incentivizes entrepreneurship and encourages small business owners to expand their operations.
High Threshold: Saskatchewan maintains Canada’s highest threshold for eligible business income at $600,000. This generous threshold ensures that a wide range of small businesses benefit from the lower tax rate, supporting their viability and sustainability in the province.
Competitive Advantage: With the second-lowest small business tax rate in Canada, Saskatchewan remains highly competitive in attracting and retaining small businesses. This favorable tax environment, coupled with other supportive measures, positions the province as an attractive destination for entrepreneurs seeking to start or expand their ventures.

The Saskatchewan Technology Start-Up Incentive (STSI)

The Saskatchewan Technology Start-up Incentive (STSI) is a key initiative aimed at fostering innovation, supporting entrepreneurship, and driving economic growth in the province’s technology sector. Established in the 2018-19 Budget, the STSI encourages investment in early-stage technology businesses with a head office in Saskatchewan, providing crucial financial support to start-ups as they develop and commercialize their innovative ideas.

Financial Support: The STSI offers a non-refundable 45% tax credit to accredited individual or corporate investors with taxes owing in Saskatchewan. This incentive helps start-ups raise the capital they need to grow their businesses, attract talent, and develop cutting-edge technologies that address market needs and drive innovation.
Increased Program Cap: The 2024-25 Budget announces enhancements to the STSI, doubling the annual program cap on the amount of non-refundable tax credits issued to $7 million annually, up from $3.5 million previously. This significant funding increase expands the program’s capacity to support more start-ups and incentivize investment in Saskatchewan’s technology ecosystem.
Expanded Eligibility: In addition to the existing eligible sectors such as agri-tech and digital technologies, the STSI now extends its support to start-ups developing novel technologies in the cleantech sector. This expansion broadens the scope of the program, encouraging innovation across diverse industries and promoting sustainability-focused solutions to global challenges.
Program Extension: The 2024-25 Budget extends the program’s sunset date to March 31, 2027, providing continuity and stability for start-ups and investors. This extension ensures that the STSI remains a valuable resource for the province’s technology community, supporting long-term growth and competitiveness in Saskatchewan’s innovation ecosystem.

By providing targeted financial incentives and support to early-stage technology ventures, the STSI contributes to the province’s economic diversification, job creation, and global competitiveness in the digital age.

To learn how your business can access government funding, download our Canadian Business Funding Guide, and align your business objectives with the government’s priorities.

Supporting Agricultural Initiatives

The agriculture sector plays a pivotal role in Saskatchewan’s economy, contributing significantly to economic growth, job creation, and food security. The 2024-25 Budget includes substantial investments in agriculture, reflecting the government’s commitment to supporting farmers, enhancing research and innovation, and promoting sustainable agricultural practices.

Increased Funding: The budget allocates $570.6 million to the agriculture sector, representing a $22.4 million increase from the previous year. This funding boost enables the Ministry of Agriculture to invest in research, crop insurance enhancements, and programming for producers and agri-businesses, ensuring the sector’s continued growth and resilience.
Risk Management Programs: The budget provides $431.7 million to fund federal-provincial risk management programs, including Crop Insurance and AgriStability. This investment helps mitigate the financial risks faced by producers due to unpredictable weather conditions and market volatility, safeguarding their livelihoods and ensuring a stable agricultural sector.
Innovative Initiatives: The budget introduces changes to Saskatchewan Crop Insurance Corporation’s weather-based programs, expanding coverage to insure intercrops and additional mixed feed crops. This initiative reflects the government’s commitment to adapting agricultural insurance programs to meet the evolving needs of producers and support diversification in the sector.
Strategic Partnerships: The budget allocates $89.4 million for strategic initiatives under the Sustainable Canadian Agricultural Partnership, including the Irrigation Development and Irrigation Efficiency programs. These initiatives aim to develop new irrigated acres, improve energy and water efficiency, and support sustainable agricultural practices, contributing to long-term growth and environmental stewardship in the agriculture sector.
Research Funding: An additional investment of $38 million is earmarked to support research in the agriculture sector, including state-of-the-art research conducted by Saskatchewan institutions. This funding facilitates innovation, knowledge transfer, and the adoption of best practices, ensuring the agriculture sector remains at the forefront of technological advancements and productivity improvements.

Visit our Sustainable Canadian Agricultural Partnership (SCAP) page to learn about the different initiatives available to the agricultural businesses in Canada. SCAP has separate streams for each province to best support the uniqueness of agricultural projects Canada-wide.

Saskatchewan Becoming an Innovation Hub

Saskatchewan Petroleum Innovation Incentive (SPII)

The SPII is a strategic initiative aimed at fostering innovation and technological advancement within Saskatchewan’s oil and gas industry. By providing transferable Crown royalty and freehold production tax credits for qualified innovation projects, the program incentivizes the development and commercialization of innovative solutions that enhance productivity and sustainability in the sector.

Innovation Support: SPII offers transferable Crown royalty and freehold production tax credits at a rate of 25% of eligible project costs. This financial support encourages companies to invest in innovative projects that drive technological advancements and improve operational efficiency.
Long-Term Commitment: The program extends the new application intake period for an additional five years, up to March 31, 2029. This extended timeframe provides certainty and encourages long-term planning and investment in innovation within the oil and gas sector.
Increased Funding Cap: The program’s total funding cap increased by $70 million, reaching a maximum of $100 million in royalty credits awarded. This expanded funding capacity allows for greater support for innovative projects, driving further advancements in the industry.

Saskatchewan Critical Minerals Innovation Incentive (SCMII)

The SCMII is a pivotal initiative designed to promote the development and commercialization of critical minerals within Saskatchewan. By providing transferable Crown royalty and freehold production tax credits, the program encourages investment in pilot and commercial scaling projects that enhance resource recovery, value-added processing, and environmental management.

Promoting Resource Development: SCMII offers transferable Crown royalty and freehold production tax credits at a rate of 25% of eligible program costs. This incentivizes companies to invest in projects that improve resource recovery rates, manage environmental impacts, and increase value-added processing of critical minerals.
Shared Funding Cap: The program shares the $100 million SPII program funding cap, ensuring sufficient financial support for critical minerals innovation projects. This strategic allocation of resources fosters collaboration between the oil and gas and critical minerals sectors.
Supporting Growth Targets: By promoting innovation in critical minerals development, SCMII contributes to achieving the growth targets outlined in Saskatchewan’s Critical Minerals Strategy. This initiative positions Saskatchewan as a competitive jurisdiction for critical minerals investment and development.

Saskatchewan Commercial Innovation Incentive (SCII)

The SCII, also known as the ‘Patent Box’, is a proactive measure aimed at promoting technology, innovation, and commercialization in Saskatchewan. By offering reduced corporate income tax rates for eligible corporations that commercialize their intellectual property in the province, the program stimulates economic growth and incentivizes investment in research and development.

Encouraging Commercialization: SCII reduces the provincial corporate income tax rate to 6% for 10 consecutive years for eligible corporations that commercialize their qualifying intellectual property in Saskatchewan. This tax incentive encourages companies to bring innovative ideas to market, fostering economic diversification and competitiveness.
Extended Application Period: The program announces a one-year extension of the new application acceptance period, up to June 30, 2025. This extension provides additional time for eligible corporations to assess and apply for the SCII, ensuring broader participation and uptake of the incentive.
Enhanced Program Review: Saskatchewan commits to reviewing the SCII in 2024, engaging with industry stakeholders to identify opportunities for program enhancement. This proactive approach ensures that the SCII remains aligned with evolving industry needs and continues to drive innovation and economic growth in the province.

Download our free guide on IRAP vs. SR&ED to learn about existing tax credits and incentives that can best support your business in achieving its upcoming research and innovation projects.

Investment Incentives Towards Natural Resources

Oil and Gas Processing Investment Incentive (OGPII)

The Oil and Gas Processing Investment Incentive (OGPII) stands as a pivotal measure aimed at fostering growth and innovation within Saskatchewan’s oil and gas sectors. By offering transferable Crown royalty and freehold production tax credits, the OGPII serves as a catalyst for qualified greenfield or brownfield value-added projects. These incentives are set at a generous rate of 15% of eligible program costs, providing a substantial financial boost to endeavors across all segments of the industry.

Program Extension and Funding Boost: The 2024-25 Budget extends the OGPII program for an additional five years, now spanning until March 31, 2029. Moreover, the program’s funding cap sees a significant increase of $130 million, elevating the total cap to a maximum of $500 million in Crown royalty and freehold tax credits. This extension and funding augmentation signify the government’s steadfast commitment to supporting and incentivizing growth and innovation in the oil and gas sectors.
Removal of Helium and Lithium: In a strategic move to align resources with emerging priorities, the OGPII removes helium and lithium from its list of eligible commodities. Instead, projects related to these sectors will find eligibility under the newly introduced Critical Minerals Processing Investment Incentive.

Critical Minerals Processing Investment Incentive (CMPII)

The introduction of the Critical Mineral Processing Investment Incentive (CMPII) in the 2024-25 Budget underscores Saskatchewan’s commitment to advancing its Critical Minerals Strategy. Designed to bolster the province’s competitiveness across the entire value chain, the CMPII offers Crown royalty and freehold production tax credits.

Incentivizing Value-Added Processing: The CMPII incentivizes all types of new or expanded value-added processing projects within Saskatchewan’s critical minerals sector. This includes opportunities for byproduct commercialization at existing mine sites and processing facilities. With a tax credit rate set at 15% of eligible program costs, the CMPII empowers projects to unlock their full potential and contribute to the province’s economic growth.
Eligible Minerals and Commodities: High-potential and emerging critical minerals, such as aluminum, cobalt, copper, gallium, helium, lithium, magnesium, nickel, all rare earth elements, and zinc, find eligibility under the CMPII. This broad scope ensures that a diverse range of projects can benefit from the incentive, further solidifying Saskatchewan’s position as a hub for critical minerals processing.

Apply For Government Grants in Saskatchewan

In navigating the complexities of economic development and sustainability, the Saskatchewan Budget 2024-25 emerges as a comprehensive roadmap designed to propel the province forward. With strategic investments in various sectors, including energy, technology, agriculture, and tourism, the government demonstrates its unwavering commitment to fostering innovation, driving growth, and enhancing the overall well-being of its residents.

For businesses seeking to leverage these opportunities, Mentor Works, a Ryan Company, stands as Canada’s leading government grant writing service. Our team of expert grant application writers and tax credit consultants is fully equipped to navigate the intricacies of these funding programs, providing invaluable guidance throughout the application process. We are dedicated to optimally positioning your business to secure the support it needs. 

As your strategic partner in offsetting the costs of business growth initiatives, Mentor Works is here to support your business towards success in the dynamic economic landscape. Reach out to a member of our funding team today to discover the grant, tax credit, or incentive programs that could elevate your business to new heights. 