Saskatchewan Regulations 89/2025 establish the framework for the Small and Medium Enterprise (SME) Investment Tax Credit under The Small and Medium Enterprise Investment Tax Credit Act. These regulations set out the definitions, eligibility requirements, investment limits, and registration procedures for businesses seeking to participate in the program. The regulations define key terms including “applicant,” “associate,” “eligible sector,” and “number of employees,” providing clarity on the relationships, activities, and calculations relevant to the program. An applicant is any business applying to the minister under the Act, and associates include corporations with significant shareholding, partners, joint venture participants, trusts, and immediate family members, emphasizing the need to assess connections that might affect eligibility. Eligible sectors include food manufacturing, beverage manufacturing, machinery manufacturing, and transportation equipment manufacturing, with detailed exclusions to ensure the program supports genuine production rather than retail, distribution, or service operations.

Food manufacturing is defined as the processing or transformation of agricultural, aquatic, or animal products into edible goods, including bakery, confectionery, dairy, meat, and grain products, while excluding retail operations and cannabis-based food products. Beverage manufacturing encompasses brewing, distilling, fermenting, blending, and packaging of beverages, excluding retail or controlled-substance operations. Machinery manufacturing covers the fabrication or assembly of equipment for agricultural, construction, mining, commercial, or service industries, while excluding repair or refurbishment activities. Transportation equipment manufacturing includes the production or assembly of vehicles, engines, and other core components, but excludes repair, modification, or generic fabrication not specific to transportation systems.

Applicants must meet specific criteria regarding their workforce, maintaining a permanent establishment in Saskatchewan and employing between five and forty-nine individuals, with at least half residing in the province. Employee counts are calculated by converting part-time and contract arrangements into full-time equivalents at the minister’s discretion. Businesses seeking registration must submit detailed information including business plans, financial statements, tax returns, equity capital requirements, and statements certifying eligibility.

Investments are considered ineligible if they create debt obligations, reduce the impact of losses for shareholders, or require share repurchases within three years. Minimum investment thresholds are set at $25,000 for individuals and $50,000 for corporations, while eligible businesses cannot raise more than $4,000,000 in equity capital. Rules regarding related persons prevent coordinated investments that could undermine the program’s integrity, and for limited partnerships, the regulations specify how ownership, control, and maximum annual investments are calculated for tax credit purposes.

Saskatchewan (89/2025) November 19, 2025
Disclaimer: Insights are for informational purposes only and does not reflect RRI’s official position or constitute legal opinion.