REGINA — The Government of Saskatchewan has launched the Saskatchewan Chemical Fertilizer Incentive (SCFI) program to attract new capital investment in large-scale chemical fertilizer production facilities.
The SCFI fulfills the commitment in Saskatchewan’s Growth Plan to introduce a chemical fertilizer incentive to encourage investment in the sector in Saskatchewan, a provincial government release stated.
“This new Saskatchewan Chemical Fertilizer Incentive makes our strong investment environment even more attractive. Our ambitious Growth Plan 2030 highlighted the creation of this SaskFirst new growth tax incentive, which will help ensure the competitiveness of Saskatchewan as we focus on critical economic recovery now and strong economic growth for our province over the next decade,” said Saskatchewan Trade and Export Development Minister Jeremy Harrison in a statement.
SCFI is a non-refundable, non-transferable 15 per cent tax credit on capital expenditures valued at $10 million or more for newly constructed or expanded eligible Saskatchewan-based chemical fertilizer production facilities. Companies can apply the benefit against corporate income tax (CIT) owing and are able to claim the benefit over a three- to 10-year period once the new or expanded facility is brought into operation.
“Our province has what the world wants in food, fuel and fertilizer. This new program will build on Saskatchewan’s already world-class agriculture and fertilizer sectors, helping to diversify and strengthen those industries, our exports, and grow the larger economy right here at home,” Harrison said.
According to the province, eligible chemical fertilizer production is defined as “all processing of mineral and chemical feedstock to create single or multi-nutrient synthetic fertilizer products. This definition excludes facilities that manufacture potash fertilizer products for which potash is the primary feedstock.”
In order to accommodate projects that have already been initiated the program was effective Nov. 1, 2017 and applications for approval must be received before Dec. 31, 2026 to be eligible.
More information is available at www.saskatchewan.ca/chemical-fertilizer-incentive.
Recent Comments
comments for this post are closed