Canada: Measure to enhance value-added agriculture incentive receives Royal Assent (Saskatchewan)

Saskatchewan's Bill 82 received Royal Assent

Saskatchewan's Bill 82 received Royal Assent

Saskatchewan's Bill 82, which includes a measure to enhance the value-added agriculture incentive, received Royal Assent (on 18 May 2022). These changes were announced in Saskatchewan's 2022 budget which was delivered on 23 March 2022. Read TaxNewsFlash

Background

Saskatchewan announced in its budget that it is enhancing the tax credit rate for the value-added agriculture incentive from 15% to 40%, depending on the level of investment. This credit applies to capital expenditures valued at $10 million* or more for newly constructed or expanded value-added agriculture facilities in Saskatchewan.

Qualifying projects may include canola crush facilities, pea protein processors, oat milling operations, malt producing operations and cannabis oil facilities. Specifically, the budget enhances the tax credit rate for the incentive at the following rates:

  • 15% on the portion of a project up to $400 million
  • 30% on the portion of a project between $400 million to $600 million
  • 40% on the portion of a project over $600 million

The enhanced tax credit rate is retroactive to the origin of the program in 2018, and the maximum credit available for a single qualifying project is $250 million.

Read a June 2022 report prepared by the KPMG member firm in Canada

*$ = Canadian dollar

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 3712, 1801 K Street NW, Washington, DC 20006.