Saskatchewan Technology Startup Incentive (STSI)
A tax credit to encourage investment in early-stage technology startups.
We are now at the end of our first fiscal year running STSI. The interest and uptake in the program has been very encouraging! Virtually all the available STSI tax credits for this 2018-19 fiscal year have been issued.
Before we get going with the 2019-20 (year 2) of the STSI pilot program, IS management is going to take some time to review the experience and performance of the STSI program after completing its first cycle. We’ll be ‘looking under the hood’ to see if there are any improvements that we can make to the program, then get it back up and running soon.
During this time, we will not be accepting any new applications or processing any applications received. The program will be back up and running shortly.
If you have any further questions, please contact Andrew Cerkowniak at firstname.lastname@example.org or 306-933-7222.
Please check back periodically for the latest update.
Tax credits will be issued on a first-come, first-served basis. Once the budget has been drawn down to zero, the remaining applicants will be eligible for next year's budget allocation.
*Fiscal year ends March 31, 2019
The remaining budget for 2018-19 is: $64,500
The remaining budget for 2019-20 is: $2,500,000
The remaining budget for 2020-21 is: $2,500,000
*As of March 15, 2019. Subject to change.
Applicants applying to both the Saskatchewan Advantage Innovation fund (SAIF) and the Saskatchewan Technology Start-up Incentive (STSI) are limited to a lifetime cap of $450,000 combined between the two programs.
For more information refer to the Funding section of the Program Guidelines or contact the program manager.
STSI is an initiative that will encourage investment into early-stage technology startups that will bring new products and services to market and create jobs in Saskatchewan. The program was announced on April 10, 2018 as part of the 2018-2019 budget. STSI will start accepting applications on October 1, 2018 but is retroactive to April 11, 2018.
The 2.5 year STSI pilot program, ending March 31, 2021, offers a 45% non-refundable tax credit to investors who invest in eligible technology-based startup businesses (ESBs).
The goal of STSI is to help build and retain technology startups in Saskatchewan by providing easier access to patient and risk tolerant funding from Saskatchewan investors. Keeping technology companies in Saskatchewan, enables a strong startup community that employs highly skilled people and grows the entrepreneurial talent in the province.
Startup Businesses and Investors interested in registering with the STSI program are required to do so through the online application portal.
View a sample version of the application for Technology Companies or Investors. You must apply through the online portal.
View the list of approved Accredited Investors.
Eligible Startup Businesses (ESBs)
In order to be eligible to register under the STSI as an ESB, a business must:
- Have fewer than 50 employees, including full time, part time, and contract workers;
- At least 50% of employees must be based in Saskatchewan;
- Have a permanent establishment in Saskatchewan;
- Have not previously raised more than $5 million in equity capital; and,
- Must be a technology-based startup, with a novel technology for sale or under development for sale as a new product or service. The technology can be from any industry as long as a company is actively developing a novel technology as a new product or service.
Venture Capital Corporations (VCCs)
In order to be eligible to register under the STSI as a VCC, a business must:
- Track eligible investor contributions to invested ESBs;
- Must have equity capital of at least $25,000 at the time of registration;
- Have a share structure consisting of common shares having no special rights or restrictions and/or common shares having special rights relating only to the redemption of the shares by the corporation;
- An existing venture capital corporation may have to establish a separate fund for the purposes of raising funds to invest in an ESB; and,
- The funds intended for ESB investment may not receive tax credits from other incentives.
Both individuals and corporations may invest under the STSI. This includes:
- Accredited investors (i.e., Angel investors);
- Corporate investors;
- Venture capital corporations; and,
- Close family, friends, and business associates of the promoters of the ESB, provided they satisfy the exemption requirements laid out in The Securities Act, 1988 as specified by the Financial and Consumer Affairs Authority of Saskatchewan.
- Please note that founders are not eligible to invest in their own company.
Additional information on eligibility criteria can be found in the program guidelines.
How to Apply
The STSI program is a first-come, first-served program. Applicants must fill out and submit their applications through the online application portal. Please note, applications not submitted through the portal will not be reviewed.
For more details on the type of information applicants will be required to submit, please refer to:
- sample Technology Company Application form
- sample Investor Application form
Create a user account and login using the button below.
For more detailed information on how to apply, please see the program guide.
- All attachments must be under 5MB. If the attachment is over 5MB, your information will not be submitted and may be lost.
- You will receive email confirmation when your application has been submitted. If you have not received confirmation, your application has not been submitted.
After you Apply
Applications will be evaluated on a first-come, first-served basis. The STSI program administrator will thoroughly evaluate the applications to ensure that all eligibility criteria is met. The STSI administrator will also be working with the National Research Council Canada Industrial Research Assistance Program (NRC IRAP). The NRC IRAP advisors will be responsible for the third-party review to ensure the technology is novel and unique.
Apply for a Tax Credit Certificate
Once an agreement to invest in an ESB has been made (i.e., through a Letter of Intent or Term Sheet):
ESBs: The ESB must apply for a tax credit certificate on behalf of the individual or corporate investors.
VCC: The VCC must apply for a tax credit certificate on behalf of the individual investors.
You can find the Tax Credit Certificate Application form here.
Claiming the Tax Credit
To claim a tax credit:
- Receive a tax credit certificate from Innovation Sask.
- File your current year personal or corporate income tax return. Once the return has been assessed and a Notice of Assessment from CRA has been received, complete a Saskatchewan Technology Start-up Incentive Claim Form and submit it to the Ministry of Finance.
- Include a copy of the:
- Tax Credit Certificate(s) as issued by Innovation Saskatchewan; and a
- Current year Notice of Assessment or Reassessment
- The Ministry of Finance will verify the claim form and provide:
- A rebate calculation in accordance with program legislation; or
- A written notice indicating that the corporation is not entitled to the rebate and the reasons for the determination.
STSI Claim Forms can be mailed to:
Ministry of Finance
PO Box 200
REGINA SK S4P 1Z6
Eligible ESBs and VCCs are required to prepare and file annual reports with the STSI Program Administrator within six months of the fiscal year end.
The annual report requirements will be made available here.
Additional Program Details
For more information on the STSI, please refer to the:
- The Saskatchewan Technology Start-up Incentive Act
- The Saskatchewan Technology Start-up Incentive Regulations
- The Saskatchewan Technology Start-up Incentive Factsheet
- The Saskatchewan Technology Start-up Incentive Program Guide
- The Saskatchewan Technology Start-up Incentive Process Flow
- The Financial and Consumer Affairs Authority National Instrument for Accredited Investors (Section 1.1 - pages 1-3) and Friends, Family, and Business Associate Investors (Section 2.6 - pages 26-27)
- The Income Tax Act (Canada) - Related Persons