Applications open for technology startups tax incentive

(Herald file photo)

Innovation Saskatchewan (IS) is accepting applications for a new tax incentive program to encourage early-stage technology startups.

IS is a government agency which gives advice to the provincial government on its decisions involving science, technology, research and development.

The Saskatchewan Technology Startup Incentive (STSI) is available for individual, corporate or venture capital corporations investing in eligible startup businesses (ESBs).

It’s a non-refundable 45 per cent tax credit given on a first-come, first-serve basis with a $7 million budget and is available for two and a half years.

According to IS, The STSI can earn an investor a maximum of $225,000 per investment and they can claim a maximum of $140,000 per tax year. This credit can then be carried on for four years.

It said these investments not only bring new products into the market, but also create job opportunities.

Minister responsible for IS spoke to the announcement in a news release.

“The technology sector is flourishing here,” said Tina Beaudry-Mellor. “The STSI is an excellent way to attract investment to this growing sector.”

Applications opened on Oct. 1 and can be submitted at www.innovationsask.ca/technology/stsi.