SASKATCHEWAN — Proposed federal tax changes aimed at helium exploration and development are being welcomed by Saskatchewan's energy sector, with provincial officials saying the changes could help attract investment and support further growth in Canada's leading helium-producing province.
Announced in the 2026 federal budget, the measures would give helium exploration, development and resource property expenses tax treatment similar to that provided to the conventional oil and gas sector. According to the federal government, the changes would apply to eligible expenses incurred on or after Nov. 5, 2026, and are expected to provide $54 million in tax relief over four years, starting in 2027-28.
In an interview with SaskToday, Saskatchewan Energy and Resources Minister Chris Beaudry said the federal measures complement provincial initiatives that have helped expand the sector.
According to Beaudry, Saskatchewan produces more than 90 per cent of Canada's helium and currently supplies about three per cent of global demand. The province has set a goal of supplying 10 per cent of the world's helium by 2030.
"The Saskatchewan government did by changing land tenure in a positive way for helium and gas, and now we're seeing positive changes from the federal government," Beaudry said.
"Investors are looking for certainty. When you see a provincial and a federal government both giving signals that this is a resource they believe in, it offers investors certainty."
Beaudry said the enhanced tax treatment could help Saskatchewan helium companies attract capital and accelerate development.
Helium production in Saskatchewan is concentrated in the province's southwest, where companies extract the gas using drilling methods similar to those used in oil and gas operations. Beaudry said Saskatchewan's geology offers an additional advantage because many helium reservoirs contain very little carbon dioxide or methane.
"The geology in Saskatchewan gives us the opportunity to produce what is called green helium," he said.
The sector has grown significantly in recent years. In October, North American Helium's purification facility near Stewart Valley began operations. The company has said the facility will increase Saskatchewan's helium production capacity by more than 40 per cent and is part of approximately $700 million invested in the province over the past decade.
Beaudry said the federal tax changes could help support additional drilling, exploration and processing infrastructure.
"We're going to see more drilling, more processing facilities, more seismic work and hopefully a liquefier built."
While Saskatchewan can extract and purify helium, it currently lacks a commercial-scale liquefaction facility. Beaudry said purified helium is transported to the United States, where it is liquefied before entering global markets.
"One hundred per cent of it goes to the United States to be liquefied," he said.
Industry leaders and the provincial government have identified a Saskatchewan-based liquefaction facility as a key next step in creating a fully integrated domestic helium supply chain.
According to Beaudry, a liquefaction facility could potentially be built within two years if sufficient investment is secured. He estimated a commercial-scale plant would cost about $100 million to construct. Saskatchewan currently offers a critical minerals processing incentive that provides tax credits of 15 per cent of eligible project costs.
Beaudry said such a facility could create approximately 55 direct jobs, in addition to employment associated with drilling, production and processing activities.
"We already have the regulations and legislation in place. This could happen as quickly as investment allows."
Despite welcoming the budget announcement, Beaudry said industry participants are continuing to advocate for additional federal policy changes, including the restoration of flow-through share eligibility for helium projects.
Flow-through shares allow resource companies to transfer qualifying exploration tax deductions to investors, helping firms raise capital for exploration and development activities. Beaudry said restoring broader eligibility would further improve Saskatchewan's ability to attract investment, particularly from Canadian investors.
Using a baseball analogy, he described the federal budget announcement as an important step forward, but not the final objective.
"We were hoping for a home run. I'd say we've got runners in scoring position."
Helium is used in a wide range of applications beyond recreational balloons. Beaudry said the gas is critical for magnetic resonance imaging (MRI) machines, semiconductor manufacturing, aerospace technologies, scientific research and other applications requiring extreme cooling properties.
He added that global helium supply shortages have occurred periodically over the past several decades and said the world is currently facing another period of supply constraints.
