In a move to bolster private investment and spur job creation, the Government of Saskatchewan has introduced legislation creating a new Small and Medium Enterprise (SME) Tax Credit.
“Small and medium-sized businesses are foundational for the strength of our provincial economy, during a time when increasing local investment is more important than ever,” Trade and Export Development Minister Warren Kaeding said. “With this new incentive, more small and medium-size businesses will be able to build equity, allowing them to grow, which leads to more jobs for our growing workforce. This is just one of the many ways that our budget delivers to the people of the province.”
The three-year pilot, which mirrors the successful Saskatchewan Technology Startup Incentive, targets food and beverage manufacturing, as well as machinery and transportation equipment sectors. The program will include a 45% 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 five to 49 employees, at least half of whom reside in Saskatchewan. The new program will be effective from July 1, 2025, to June 30, 2028, and will begin accepting applications in late 2025.
Since 2014, the number of small businesses in Saskatchewan has risen by 4.3%. Private capital investment in the province jumped 17.3% last year to $14.7 billion—leading the country in growth—and is projected to reach $16.2 billion by 2025, marking an anticipated 10.1% increase over 2024.
By introducing this SME Tax Credit, the Government of Saskatchewan aims to provide a catalyst for economic development, helping local enterprises scale up their operations and create new opportunities for the province’s expanding workforce.
