Saskatchewan Commercial Innovation Incentive (SCII)

In today’s competitive business landscape, innovation is the key to staying ahead. Recognizing this, the Government of Saskatchewan has introduced the Saskatchewan Commercial Innovation Incentive (SCII), a groundbreaking tax incentive designed to propel businesses that commercialize their intellectual property within the province.

What is the Saskatchewan Commercial Innovation Incentive (SCII)?

The SCII, often referred to as the “Patent Box,” offers eligible corporations a reduced provincial Corporate Income Tax (CIT) rate of 6 percent for a period of 10 consecutive years. This initiative aims to encourage companies to bring their innovative products, services, or processes to market in Saskatchewan. This will help to foster economic growth and job creation. Notably, if a company conducts at least 50 percent of its related research and development (R&D) in Saskatchewan before commercialization, the benefit period extends to 15 years.

Recent Developments: Extension and Enhanced Accessibility

In a significant move to bolster the province’s innovation ecosystem, the Government of Saskatchewan announced on March 26, 2025, an extension of the SCII program to June 30, 2027. This extension underscores the province’s commitment to fostering a business-friendly environment that supports innovation and investment.

Furthermore, the program has undergone improvements to expand eligibility and simplify the application process. By eliminating certain economic eligibility criteria, the SCII is now more accessible to a broader range of businesses. This ensures that more companies can benefit from this incentive.

Benefits of the Saskatchewan Commercial Innovation Incentive (SCII)

Participating in the SCII offers several advantages:

Substantial Tax Savings: Enjoy a reduced CIT rate of 6 percent, significantly lowering your tax burden and freeing up capital for reinvestment.
Flexible Benefit Period: Choose when to commence the tax rebate period, aligning with your business strategy and financial planning.
Compatibility with Other Incentives: The SCII allows you to claim other eligible tax incentives or grants offered by Saskatchewan without impacting your SCII eligibility or benefits.
Support for Ongoing Innovation: The program accommodates “cascading or forking” innovations, meaning new iterations or developments related to the original qualifying intellectual property can also benefit from the incentive.

Eligibility Criteria

To qualify for the SCII, your business must:

Commercialize Qualifying Intellectual Property (IP): This includes owning or licensing IP linked to new or significantly improved goods, services, or processes in Saskatchewan. The innovation should either have no equivalent in the Canadian market or represent an exceptional advancement over existing offerings.
Establish an Eligible Corporation: The corporation’s revenue should be solely derived from the commercialization of the qualifying IP.
Demonstrate Economic Benefits to Saskatchewan: While recent improvements have eliminated certain economic eligibility criteria, it’s essential to showcase how your business activities will contribute positively to the province’s economy.

Why Partner with Ayming Canada?

Navigating the intricacies of tax incentives like the Saskatchewan Commercial Innovation Incentive (SCII) can be complex. At Ayming Canada, we specialize in helping businesses identify and secure government funding opportunities. Our team of experts will:

Assess Your Eligibility: Determine if your innovation qualifies for the SCII and identify any additional funding opportunities.
Streamline the Application Process: Guide you through each step, ensuring that your application is comprehensive and submitted correctly.
Maximize Your Benefits: Help you integrate the SCII with other incentives and grants to optimize your financial advantages.
Provide Ongoing Support: Assist with compliance and reporting requirements throughout the benefit period.

Don’t Miss Out on This Opportunity

The extension of the SCII to 2027 presents a prime opportunity for innovative businesses to reduce their tax burden and reinvest in growth. However, navigating the application process and meeting the eligibility criteria can be challenging without expert guidance.

Contact Ayming Canada today to unlock the full potential of the Saskatchewan Commercial Innovation Incentive and propel your business to new heights. Our dedicated team is ready to help you capitalize on this opportunity and drive your innovation forward.