The Saskatchewan government has introduced a new tax incentive for the value-added agriculture sector.
The incentive is a 15 percent non-refundable tax credit for value-added agriculture facilities which make a significant capital investment to expand production capacity.
Trade and Export Development minister Jeremy Harrison says qualifying projects include new and existing value-added agricultural facilities.
To be eligible, a project must have 10 million dollars in new capital expenditures, demonstate the purpose of increasing productive capacity, and meet the definition of value-added agriculture.
Potential examples include pea protein processors, oat milling operations, malt producers, or cannabis oil processing facilities.
Redemption of the benefits is limited to 20 percent in year one after the facility enters operation, 30 percent in year two, and 50 percent in year three.
There is a maximum carry forward of 10 years on any remaining credit amount.
The program will begin accepting applications in mid to late 2018.