Saskatchewan launches small and medium-sized business tax credit

The Government of Saskatchewan is introducing a new pilot program meant to help local businesses grow.

On Friday, the province launched the Small and Medium Enterprise (SME) Investment Tax Credit.

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It allows approved investors to earn up to $225,000 in tax credits per year for investing in small or medium-sized businesses operating in the food and beverage or manufacturing industry.

Eligible businesses can earn up to $4 million under the program. Applications for the program are open for investments made between July 1, 2025 and June 30, 2028.

Glenn Valgardson, owner and CEO of Pile O’Bones, said the initiative will open many doors for businesses like his.

“When you’re trying to do any kind of capital fundraiser and equity raise in a business that money has to come from somewhere and generally, when you are a small business, you’re limited to qualified investors or friends and family,” Valgardson said at a media event located at Pile O’Bones.

“This would be an excellent way for friends and family to invest their tax dollars into your business.

“It opens up a lot of opportunities, and it adds a minor safety net for investment.”

Valgardson added that a program like the SME tax credit would have greatly benefited Pile O’Bones when its brewery was being built.

The program offers investors a 45per cent non-refundable tax credit. The investors can be either individuals or corporations.

Warren Kaeding, minister of trade and export development, said the province was providing up to $7 million per year over the next three years.

He explained that business and investors can submit their applications through an online portal.

“Over 95 per cent of the businesses operating here are small businesses, and these two sectors, in particular — food and beverage and the equipment manufacturing sector — are the ones that we heard probably have the most difficulty accessing capital to expand or to grow,” Kaeding said.

“It was certainly in those sectors, (that’s) where we’re starting, and then we’ll see what the uptake is, what the interest is and the value to those investors and to those that are receiving the investment, to see if we expand that after.”

On Friday, Aleana Young, opposition critic of of jobs and economy, said the Sask. NDP welcomes any support for small and medium businesses.

In a written statement, Young said the adoption of this measure was timely although she still criticized the government’s track record.

“The latest Stats Canada figures show that under Scott Moe, Saskatchewan has second-worst job creation record in Canada. Saskatchewan deserves a government working full out to build a bright future for everyone,” the statement read.

EDITOR’S NOTE: This story has been amended to include a response from the Sask. NDP who commented on Friday.

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