Saskatchewan Introduces New Tax Credits to Support Families and Businesses
In a move aimed at addressing key priorities for Saskatchewan residents, the provincial government has announced two new tax credits. These measures are designed to make life more affordable for families and stimulate business growth.
The first tax credit focuses on fertility treatments. Eligible individuals will receive a refundable 50% tax credit, up to $10,000, for treatments performed in Saskatchewan. This initiative seeks to reduce financial barriers for those seeking fertility treatments.
The second tax credit targets small and medium-sized enterprises (SMEs). Investors in eligible businesses will receive a 45% non-refundable tax credit. This aims to boost investment in key sectors like food manufacturing and transportation equipment production.
Deputy Premier and Finance Minister Jim Reiter emphasized that these tax credits align with Saskatchewan residents’ priorities. “These measures provide relief for families and create incentives for businesses to grow and expand,” he stated.
Mike Tate, President of the Regina and District Chamber of Commerce, praised the SME investment tax credit. He believes it will reduce financial burdens on businesses, enabling them to reinvest in innovation and job creation.
Additionally, the government has introduced amendments to ensure continued indexation of tax credits under the Saskatchewan Affordability Act. This will help maintain the purchasing power of these credits over time.
In a related move, Saskatchewan has removed the provincial sales tax (PST) exemption on vapour products, effective June 1. These products will now be subject to a 6% PST rate, in addition to the existing vapour products tax.
Erin Kaun, President and CEO of Lung Saskatchewan, commended this decision. She noted that increased taxation is an effective strategy to reduce vapour product consumption, particularly among youth, who are at higher risk of long-term health impacts.
These tax changes reflect Saskatchewan’s broader strategy to support families, foster business investment, and promote public health through targeted tax policies.
Details of the New Tax Credits and Their Expected Impact
The fertility treatment tax credit will provide a refundable 50% tax credit for eligible treatments performed in Saskatchewan, with a maximum eligible cost of $20,000. This means individuals could receive up to $10,000 in tax relief to help cover the costs of fertility treatments, making it more affordable for Saskatchewan residents to grow their families.
The small and medium enterprise investment tax credit will offer a 45% non-refundable tax credit for individuals or corporations that invest equity in eligible small and medium-sized businesses in Saskatchewan. This credit is particularly focused on supporting businesses in key sectors such as food and beverage manufacturing, as well as machinery and transportation equipment manufacturing. The goal is to encourage investment and growth in these sectors, which are critical to the province’s economic development.
Saskatchewan’s Deputy Premier and Finance Minister, Jim Reiter, highlighted that these tax credits address priorities expressed by Saskatchewan residents. He stated, “These measures provide relief for parents pursuing fertility treatments and create incentives for business investment and expansion.” The government believes these changes will help make life more affordable for families while also fostering economic growth.
Mike Tate, President of the Regina and District Chamber of Commerce, praised the small and medium enterprise investment tax credit. He emphasized that it will have a positive impact on Saskatchewan’s business community by reducing financial burdens and allowing businesses to reinvest in innovation, expansion, and job creation. Tate believes this credit will help local businesses thrive while also attracting new investments to the province.
In addition to the new tax credits, the amendments will ensure continued indexation of tax credits outlined in the Saskatchewan Affordability Act and other income tax programs. This will help maintain the purchasing power of these credits over time, ensuring they remain effective in supporting Saskatchewan residents.
The Saskatchewan government has also introduced amendments to remove the provincial sales tax (PST) exemption on vapour products, effective June 1. These products will now be subject to the 6% PST rate, in addition to the existing vapour products tax. This change is expected to generate $3 million in annual PST revenue while also discouraging the use of these products, particularly among youth, who are at higher risk of long-term health impacts from nicotine exposure.
Erin Kaun, President and CEO of Lung Saskatchewan, commended the government’s decision to add PST to vapour products. She noted that increased taxation is an effective strategy for reducing consumption, particularly among youth. Kaun emphasized that this measure aligns with public health goals and will help protect young people from the negative health impacts of nicotine exposure.
Overall, these tax changes reflect Saskatchewan’s efforts to support families, encourage business investment, and promote public health through targeted tax policies. The government is confident that these measures will have a positive impact on the province’s economy and the well-being of its residents.
Conclusion
The introduction of new tax credits in Saskatchewan marks a significant step toward addressing the financial challenges faced by families and businesses. By providing a refundable 50% tax credit for fertility treatments and a 45% non-refundable tax credit for SME investments, the government aims to make life more affordable for residents and stimulate economic growth. Additionally, the removal of the PST exemption on vapour products aligns with public health goals, particularly in reducing youth consumption of these products.
These measures reflect Saskatchewan’s commitment to supporting families, fostering business investment, and promoting public health through targeted tax policies. As the province continues to navigate economic and social challenges, these tax changes are expected to have a positive impact on both individual well-being and the broader economy.
Frequently Asked Questions (FAQ)
What are the new tax credits introduced by Saskatchewan?
The Saskatchewan government has introduced two new tax credits: a refundable 50% tax credit for fertility treatments (up to $10,000) and a 45% non-refundable tax credit for investments in eligible small and medium-sized enterprises (SMEs).
Who is eligible for the fertility treatment tax credit?
Eligible individuals undergoing fertility treatments in Saskatchewan can claim a refundable 50% tax credit, up to a maximum of $10,000. The treatment must be performed in Saskatchewan to qualify.
How do I claim the SME investment tax credit?
Individuals or corporations investing in eligible SMEs in Saskatchewan can claim a 45% non-refundable tax credit. The credit is focused on key sectors such as food manufacturing and transportation equipment production.
When do the new tax credits take effect?
The fertility treatment tax credit and SME investment tax credit are effective as of the announcement. Specific details on claiming the credits will be provided by the Saskatchewan government.
Why did Saskatchewan remove the PST exemption on vapour products?
The removal of the PST exemption on vapour products, effective June 1, aims to reduce consumption, particularly among youth, and aligns with public health goals. Vapour products will now be subject to a 6% PST rate, in addition to the existing vapour products tax.
