Saskatchewan introduces new tax credits to boost affordability, business growth

Saskatchewan’s government is moving ahead with changes to The Income Tax Act 2000 to reflect key initiatives from the recently tabled 2025-26 provincial budget, aimed at easing financial pressures on residents and encouraging business investment.

The amendments include the introduction of two new tax credits: the Fertility Treatment Tax Credit and the Small and Medium Enterprise (SME) Investment Tax Credit. The updates will also maintain the indexation of tax credits under The Saskatchewan Affordability Act and other income tax programs.

“Our government listened to the priorities of Saskatchewan people and delivered a budget that addresses those priorities, including making life more affordable,” said Deputy Premier and Minister of Finance Jim Reiter. “These tax credits provide relief for parents trying to grow their families without worrying about the high costs of fertility treatments and create incentives for businesses to invest and scale-up their operations.”

The Fertility Treatment Tax Credit will offer a refundable tax credit of 50% on eligible fertility treatment costs up to $20,000, helping families offset significant medical expenses incurred within the province.

The SME Investment Tax Credit, a 45% non-refundable credit, is designed to stimulate local economic growth by encouraging individuals and corporations to invest in eligible Saskatchewan-based small and medium-sized businesses. Priority sectors for the credit include food and beverage manufacturing, as well as machinery and transportation equipment manufacturing.

Business leaders are welcoming the move.

“The introduction of the Small and Medium Enterprise Investment Tax Credit will have a positive effect on the Regina and Saskatchewan business communities,” said Mike Tate, President of the Regina and District Chamber of Commerce. “By introducing tax relief and incentives, the amendments will reduce the financial burden on businesses and allow for reinvestment in innovation, expansion, and job creation. This will enable local businesses to thrive while attracting new investments to Saskatchewan.”

The province says the amendments reflect its continued commitment to affordability, economic resilience, and a supportive environment for families and entrepreneurs alike.