Schedule 402, Saskatchewan Manufacturing and Processing Investment Tax Credit

Corporations earning income from manufacturing and processing activities with a permanent establishment in Saskatchewan and that acquired eligible property may qualify for this refundable credit.

The rate of the investment tax credit (ITC) corresponds to the rate of the Saskatchewan Provincial Sales Tax (PST). Therefore, the credit is equal to 6% of the capital cost of a qualified property acquired after March 22, 2017. The rate was previously 5%.

For example, a corporation acquiring property costing $1,000, will pay $60 in PST for a total cost of $1,060. The ITC will then be equal to 6% of the $1,060 capital cost, i.e. $63.60.

The ITC is available for new and used qualifying M&P equipment on which PST has been paid.

See Also

MP-2 Saskatchewan Manufacturing and Processing Investment Tax Credit

Federal Income Tax Folio S4-F15-C1