Saskatchewan’s Manufacturing & Processing Investment Tax Credit

The Manufacturing and Processing Investment Tax Credit (M&P ITC) is a provincial incentive offered by the Government of Saskatchewan to encourage capital investment and support growth in the manufacturing and processing sector. The M&P ITC provides a 6% refundable tax credit based on the capital cost of eligible machinery and equipment used in manufacturing or processing goods for sale or lease in Saskatchewan. At Ayming, we help businesses identify eligible assets and maximize the benefits of this incentive.

Eligible Entities: To qualify for the M&P ITC, the business must meet the following criteria:

• • Must be a manufacturing and processing corporation operating with a permanent establishment in Saskatchewan.

Eligible Property: To be eligible for the 6% tax credit, the equipment must meet certain conditions.

• • New equipment: Must be machinery, equipment or components primarily used in manufacturing or processing activities.

  • Used equipment: Also eligible only if Provincial Sales Tax (PST) has been paid

At Ayming, we help businesses identify eligible assets and guide them through the process to maximize this provincial incentive.

The M&P ITC provides a 6% refundable tax credit. If you invest $ 1,000 in qualifying equipment (incl. installation), and you paid $60 PST, your ITC would be 6% of the total capital cost ($ 1,060), giving a credit of $63.60. At Ayming, we help businesses calculate eligible costs accurately and maximize their refundable tax credits.