2024 Saskatchewan provincial budget tax highlights

On March 20, the Saskatchewan government released its 2024 budget. The following are highlights of the key tax measures.

Personal tax measures

No personal income tax rate changes were announced in this year’s budget. However, the government announced annual indexing of the personal tax brackets starting in 2024. The current personal combined income tax rates for 2024 are outlined below:

Provincial Sales Tax Rebate for New Home Construction and the Secondary Suite Incentive

Two programs were announced in November 2023 and retroactive to April 2023. The Provincial Sales Tax (PST) Rebate for New Home Construction provides a rebate of up to 42 per cent of the PST paid on the purchase of a newly constructed, previously unoccupied home. The Saskatchewan Secondary Suite Incentive (SSI) grant program will provide 35 per cent of the total price to construct a new secondary suite at an owner’s primary residence to a maximum of $35,000 for a qualifying suite.

Corporate tax measures

In the budget, the planned increase to the small business tax reduction from one to two per cent was deferred to July 1, 2025. The current corporate income tax rates for 2024 are outlined below:

Saskatchewan Critical Minerals Innovation Incentive

The budget introduces the Saskatchewan Critical Mineral Innovation Incentive (SCMII), which is designed similarly to the existing Saskatchewan Petroleum Innovation Incentive (SPII) program. This program provides transferable Crown royalty and freehold production tax credits at a rate of 25 per cent of eligible program costs. The SCMII will share the $100 million SPII program funding cap.

Critical Minerals Processing Investment Incentive

Complementing the new SCMII program, the budget introduces the Critical Mineral Processing Investment Incentive (CMPII) to help businesses advance across the entire value chain. CMPII provides transferable Crown royalty and freehold production tax credits at a rate of 15 per cent of eligible program costs. The CMPII is available to all types of new or expanded value‑added processing projects across Saskatchewan’s critical minerals sector, including byproduct commercialization opportunities at existing mine sites and processing facilities. The CMPII will share the $500 million Oil and Gas Processing Investment Incentive (OGPII) program funding cap.

Multi-lateral Well Program

The budget introduces the Multi‑lateral Well Program, a Crown royalty and freehold production tax volumetric drilling incentive for new oil wells. The incentive is based on whether the well is an eligible non‑deep well, an eligible deep well or an eligible appraisal/exploratory well. The Multi‑lateral Well Program will apply to eligible new wells drilled between April 1, 2024 and March 31, 2028.

Saskatchewan Petroleum Innovation Incentive

The budget extends the Saskatchewan Petroleum Innovation Incentive (SPII) new application intake period for an additional five years ⁠–⁠ to March 31, 2029. It also increases the program’s total funding cap by $70 million, resulting in an overall increase from a $30 million cap to a maximum of $100 million in royalty credits awarded.

Oil and Gas Processing Investment Incentive

The OGPII offers transferable Crown royalty and freehold production tax credits for qualified greenfield or brownfield value‑added projects across all segments of Saskatchewan's oil and gas sectors at a rate of 15 per cent of eligible program costs. The budget extends the program an additional five years ⁠–⁠ to March 31, 2029. It also increases the program’s total funding cap by $130 million, resulting in an overall increase from a $370 million cap up to a maximum of $500 million in Crown royalty and freehold tax credits awarded.

Saskatchewan Commercial Innovation Incentive

The 2017‑18 budget introduced the Saskatchewan Commercial Innovation Incentive (SCII or ‘Patent Box’). The 2024‑25 budget announces a one‑year extension of the new application acceptance period to June 30, 2025. Along with this extension, the province will review the program in 2024, including engaging with industry to identify opportunities to enhance the commercialization of intellectual property in Saskatchewan.

Saskatchewan Technology Start-up Incentive

The Saskatchewan Technology Start‑up Incentive (STSI), originally introduced in the 2018‑19 budget, encourages investment in early‑stage technology businesses that have a head office in Saskatchewan by offering a non‑refundable 45 per cent tax credit to certain accredited individuals or corporate investors.

The 2024-25 budget announces that the program will be enhanced in the following ways:

• Doubling the annual program cap on the amount of non‑refundable tax credits that may be issued to $7 million annually (previously capped at $3.5 million annually)
• Expanding eligibility to start‑ups developing novel technologies in the cleantech sector (in addition to the currently eligible agtech and digital sectors)
• Extending the program’s sunset date to March 31, 2027 (previously March 31, 2026)

Provincial sales tax measures

The budget includes administrative measures intended to address consumption tax compliance issues. Legislative changes will be introduced to enhance collection tools, increase penalties, prevent tax avoidance and clarify compliance obligations and monitoring.

Next steps

Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.