Saskatchewan eliminates refundability, cuts rates of SR&ED credits
In its budget released on March 18th, the Saskatchewan government has decided to cut tax credits for scientific research and experimental development (SR&ED). The rate companies enjoyed will be reduced from 15% to 10%. As well, the province is eliminating the refundability of the incentive program, meaning companies will only be able to use the credits to pay their income taxes. This will be a major blow to startups and small companies who relied on the program to generate cashflow.
These changes are effective starting April 1st 2015.