If your business does R&D in Saskatchewan, you can often claim both the provincial Research and Development Tax Credit and the federal SR&ED program on the same work. Many companies struggle to understand how these programs work together. What gets reduced? How do you file correctly? If you know the rules, you can get thousands of dollars back to your business. But mistakes can lead to costly reassessments.
Saskatchewan’s Research and Development Tax Credit is a provincial corporate income tax credit for eligible R&D activities carried out in the province. It is designed to complement the federal Scientific Research and Experimental Development (SR&ED) program, not replace it.
According to the Government of Saskatchewan, the program has these core features:
Important: Even though the credit is provincial, Saskatchewan generally relies on SR&ED definitions when deciding what counts as eligible R&D.
Understanding how these two programs differ helps you avoid errors and maximize your benefit.
| Feature | Saskatchewan R&D Tax Credit | Federal SR&ED |
|---|---|---|
| Level | Provincial | Federal |
| Refundable | No | Often refundable for CCPCs |
| Based on | SR&ED-style R&D in Saskatchewan | SR&ED legislation |
| Impact on other credits | Reduces SR&ED pool | Not reduced by SR&ED itself |
| Filing authority | Saskatchewan Ministry of Finance | Canada Revenue Agency |
Some companies expect the same process or outcome from both programs, but the differences above are key. For example, SR&ED is often refundable for Canadian-controlled private corporations (CCPCs), while the Saskatchewan credit only reduces your provincial tax bill.
Yes — you can claim both programs on the same R&D project. There are rules about how the credits affect each other.
You calculate SR&ED first
Document your eligible R&D work and file with the CRA as part of your SR&ED claim.
The provincial credit is calculated on the same R&D base
Saskatchewan uses eligible SR&ED-type expenditures incurred in the province.
The Saskatchewan credit reduces your SR&ED pool
Like most provincial R&D credits, the Saskatchewan R&D Tax Credit counts as government assistance.
You file both with your corporate tax return
Tools like GrantHub’s eligibility matcher can help you quickly check if your R&D activities meet both federal and provincial criteria before you file. GrantHub also tracks changes to provincial tax credits, so you stay up to date.
The Saskatchewan R&D Tax Credit is non-refundable. If your company has no provincial tax payable, the credit may be carried forward but won’t generate immediate cash.
Not subtracting the Saskatchewan credit from your SR&ED pool is a common reason for CRA reviews and reassessments.
Only eligible R&D activities qualify. Routine engineering, QA testing, or market research usually do not.
SR&ED approval alone does not automatically grant the Saskatchewan credit. You must still complete the correct provincial schedules.
Q: Can I claim the Saskatchewan R&D Tax Credit and SR&ED on the same expenses?
Yes. Saskatchewan allows the credit to be claimed alongside SR&ED, but the provincial credit amount must reduce your federal SR&ED expenditure pool.
Q: Is the Saskatchewan R&D Tax Credit refundable?
No. It is a non-refundable corporate income tax credit. It reduces Saskatchewan tax payable but does not generate a direct refund.
Q: Do I need SR&ED approval to claim the Saskatchewan credit?
While Saskatchewan generally follows SR&ED definitions, approval under SR&ED does not automatically guarantee acceptance at the provincial level. Documentation still matters.
Q: What types of businesses usually benefit most?
Corporations with consistent taxable income in Saskatchewan benefit the most, since the credit offsets provincial tax rather than providing cash.
Q: Does the credit apply outside Saskatchewan?
No. Only R&D activities and eligible expenditures incurred in Saskatchewan qualify.
If your business is doing technical development, software, agri-tech, or manufacturing R&D in Saskatchewan, combining SR&ED with the Saskatchewan R&D Tax Credit can significantly reduce your tax bill. The key is understanding how the two interact before you file.
GrantHub tracks active R&D tax credits and grant programs across Canada — including provincial programs that work together with SR&ED — so you can see what fits your business profile before you commit time and money.
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