REGINA — Legislation has been introduced that will see the creation of a new Small and Medium Enterprise (SME) Tax Credit.
The program is a three-year pilot, which will function similarly to the Saskatchewan Technology Startup Incentive (STSI). The pilot targets enterprises in the food and beverage manufacturing and the machinery and transportation equipment sectors.
The program will include a 45 per cent non-refundable tax credit for individuals or corporations who invest in the equity of an eligible Saskatchewan SME. It will have an annual cap of $7 million on the total non-refundable tax credits awarded, processed on a first-come, first-served basis.
An eligible SME is defined as a Saskatchewan-based business with between five and 49 employees, with a minimum of 50 per cent of those employees residing in Saskatchewan.
Since 2014, the number of small businesses has risen 4.9 per cent in the province.
Private capital investment in Saskatchewan increased last year by 17.3 per cent to $14.7 billion. Private capital investment is projected to reach $16.2 billion in 2025, an increase of 10.1 per cent over 2024.
The SME Tax Credit pilot program will be in effect from July 1, 2025 to June 30, 2028. The program will begin accepting applications in late 2025.
