Saskatchewan 2024-25 Budget Highlights

Saskatchewan Minister of Finance Donna Harpauer tabled the province’s 2024-25 budget on Wednesday, March 20, 2024. This year’s budget, titled Classrooms, Care & Communities, includes increased funding for education, healthcare, and municipalities. The budget also includes various business measures intended to grow the economy.

Business tax measures

Corporate income tax rates

In support of small businesses, the budget announced that the current small business tax rate of one percent will remain through June 30, 2025. This rate was originally scheduled to return to two percent in July 2024.

Once this measure is enacted, the expected corporate income tax rates for 2024 are as follows:

M&P — Manufacturing & Processing

* Rates applicable to income not eligible for the temporary rate reduction for manufacturers of qualifying zero-emission technology.

Saskatchewan Technology Start-up Incentive

The budget announced enhancements to the existing 45 percent non-refundable tax credit available to encourage investment in early-stage technology businesses in Saskatchewan. Specifically, the province will enhance the program by:

• Doubling the annual cap for the non-refundable tax credits that may be issued to $7.0 million annually (previously $3.5 million)
• Expanding eligibility to start-ups developing novel technologies in the cleantech sector
• Extending the program’s sunset date to March 31, 2027 (previously March 31, 2026)

The proposed changes are effective April 1, 2024, with cleantech start-up applications being accepted as of that date.

Saskatchewan Petroleum Innovation Incentive (SPII)

The budget announced an extension of the new application intake period for an additional five years, to March 31, 2029. The province will also increase the program’s total available funding to $100 million in royalty credits awarded (from $30 million).

The program is intended to target a broad range of innovations deployed across all segments of Saskatchewan’s oil and gas industry.

Saskatchewan Commercial Innovation Incentive

The budget announced a one-year extension to the new application acceptance period for this incentive to June 30, 2025. As well, the province announced it intends to review the program by engaging with industry to identify opportunities to enhance the commercialization of intellectual property in Saskatchewan.

Oil and Gas Processing Investment Incentive (OGPII)

The budget announced an extension to this incentive program for an additional five years, to March 31, 2029. The program’s total funding cap is also increased to $500 million in Crown royalty and freehold tax credits awarded (from $370 million).

Saskatchewan Critical Minerals Innovation Incentive

The budget introduced the Saskatchewan Critical Minerals Innovation Incentive (SCMII), a new transferable Crown royalty and freehold production tax credit. Like the SPII, the SCMII will provide transferable credits at a rate of 25 percent of eligible program costs. The SCMII will share the $100 million SPII program funding cap.

The SCMII will apply to both pilot and commercial scaling projects that feature the deployment of novel technologies that can improve resource recovery rates, manage environmental impacts, increase value-added processing, or commercialize a byproduct or waste product.

The details of the program are being finalized, with the official launch of the program expected in late spring 2024.

Saskatchewan Critical Minerals Processing Investment Incentive

To complement the new SCMII program, the budget also introduced the Critical Minerals Processing Investment Incentive (CMPII) to help advance the province’s critical minerals strategy. The CMPII will also provide transferable Crown royalty and freehold production tax credits, but at a rate of 15 percent of eligible program costs. This program will share the $500 million OGPII program funding cap.

The CMPII will be available to all types of new or expanded value-added processing projects for various critical minerals.

The details of the program are being finalized, with the official launch of the program expected in late spring 2024.

Multi-lateral Well Program

The budget introduced a Crown royalty and freehold production tax incentive to increase the drilling of multi-lateral oil wells which have the potential to increase oil recovery rates and enable new investment opportunities in Saskatchewan.

The Multi-lateral Well Program will apply to eligible new wells drilled between April 1, 2024, and March 31, 2028.

Personal income tax measures

Personal tax rates

No new personal income tax rate changes were announced in this year’s budget. The top marginal personal income tax rate for Saskatchewan is 14.50 percent for 2024. The current top combined federal and Saskatchewan marginal rates for 2024 are summarized below:

Previously announced measures

The government announced the continuation of various personal tax benefits and credits for 2024-25 for eligible taxpayers:

• Graduate Retention Program — Up to $20,000 tax rebate
• Active Families Benefit — Up to $150 refundable tax credit per child ($200 for children with a disability)
• Saskatchewan First-Time Homebuyers’ Tax Credit — Up to $1,050 non-refundable tax credit
• Low-Income Tax Credit — Fully refundable, non-taxable benefit

Other tax measures

Tax administration

The budget announced measures to help address repeat flagrant “bad actors” who avoid remitting the consumption taxes they owe — including taxes collected from customers but not remitted to the government. Measures expected to be implemented later this year include:

• Enhancing collection tools
• Increasing penalties
• Preventing tax avoidance
• Clarifying compliance obligations and increasing associated monitoring

More details and highlights of the 2024-25 Saskatchewan budget can be found here.