The Income Tax Amendment Act, 2025 (Bill 13) changes how several Saskatchewan non‑refundable tax credits are calculated for 2026–2028 by adding $500 to key base amounts, then reverts to indexed amounts for 2029 onward. It also establishes a one‑time provincial fertility treatment tax credit with a maximum and a set of exclusions, and creates a mechanism to rebate certain Small and Medium Enterprise Investment (SMEI) tax credits to eligible taxpayers subject to caps and timing rules.
Administratively, the bill fixes a new base TCA amount in statute, adjusts multiple credit formulas to reference that base plus the temporary $500 increase for the three transition years, adds ministerial procedures, confidentiality and Crown immunity clauses, and makes most of the changes retroactive to January 1, 2025 (with specific earlier or later effective dates for select provisions). The measures reallocate provincial tax relief toward targeted taxpayers and investors while imposing new submission and repayment rules that will affect cash flow and compliance for recipients and the ministry alike.
At a Glance
What It Does
For 2026–2028 the bill modifies multiple credit formulas by adding $500 to the statutory base amounts (the variable TCA or Y) and applying the usual AP percentage; from 2029 onward credits use the preceding year’s indexed amounts. It creates a one‑time fertility treatment tax credit (lesser of $10,000 and 50% of eligible expenses) with specified exclusions and introduces section 67.3 to rebate provincial SMEI tax credit certificates subject to caps and timing limits.
Who It Affects
Individual Saskatchewan residents claiming provincial basic personal, spousal/equivalent‑to‑spouse, dependent child, or senior supplementary credits; taxpayers claiming fertility medical expenses; investors and businesses using the SME Investment Tax Credit; and the Ministry of Finance (administration, audit and rebate processing).
Why It Matters
The bill shifts how common provincial credits are calculated during a three‑year transition, introduces a material new provincial fertility support that excludes out‑of‑province services, and converts part of an investment tax credit into a provincially administered rebate with strict caps — all of which change tax outcomes, timing of benefit receipt, and administrative burdens.
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What This Bill Actually Does
Bill 13 revises the mechanics of Saskatchewan’s non‑refundable personal tax credits by amending the formulas that determine the credit amounts. For the 2026, 2027 and 2028 taxation years it explicitly increases the base amount used in several credit calculations (the bill calls this TCA or Y in different provisions) by $500 before multiplying by the applicable percentage (AP).
From 2029 onward, the credits revert to being calculated from the preceding year’s indexed base without the temporary $500 add‑on. The affected credits include the basic personal credit, spousal credit, equivalent‑to‑spouse credit, dependent child credit and senior supplementary credit.
The bill also creates a provincial fertility treatment tax credit (new section 39.5). It is a one‑time credit available to Saskatchewan residents that equals the lesser of $10,000 and 50% of eligible fertility expenses as defined by the federal definition in paragraph 118.2(2)(v).
Claimants may combine expenses paid in any 12‑month period ending in the taxation year, but the credit excludes travel, out‑of‑province clinic fees and treatments, reimbursements from private insurance, and reversal of elective sterilization. Only one partner can claim for the same taxation year.On the business side, Bill 13 adds section 67.3 to implement a rebate program for persons issued SMEI tax credit certificates under the provincial SME Investment Tax Credit Act.
Eligible taxpayers must apply with full tax returns and federal notices of assessment; the rebate equals the lesser of provincial tax otherwise payable and a calculated R amount (TB less prior PD), subject to a per‑certificate cap of $140,000, a maximum claim period (no rebates before 2025 or after 2034 and no rebates beyond six taxation years after certificate issue), minimum investment thresholds ($25,000 individual, $50,000 corporation), and exclusions for certificates tied to equity raised above specified limits. The minister may set procedures, adjust rebates after federal reassessments, demand repayments and charge interest where overpayments occur.Finally, the bill standardizes indexing language (sets a statutory $13,986 TCA baseline adjusted under subsection 51(3)), inserts ministerial immunity and confidentiality protections for officials acting under the Act, and makes most changes retroactive to January 1, 2025 with a few provisions effective on other specific dates.
These retroactive and administrative rules create timing implications for assessments, refunds, and the ministry’s record‑keeping and enforcement functions.
The Five Things You Need to Know
For 2026–2028 the bill increases the base amounts used to calculate multiple provincial credits by $500 before applying the appropriate percentage; from 2029 onward credits use the preceding year’s indexed base without the $500 add‑on.
The new fertility treatment tax credit (s.39.5) is a one‑time provincial credit equal to the lesser of $10,000 and 50% of eligible fertility expenses, with a 12‑month lookback and explicit exclusions (travel, out‑of‑province services, private‑insurance reimbursed amounts).
Section 67.3 establishes an SMEI rebate: an eligible taxpayer may receive a rebate up to the lesser of tax otherwise payable and R = TB − PD, subject to a $140,000 per‑certificate cap, no rebates before 2025 or after 2034, and a six‑year post‑certificate claim limit.
The bill fixes the variable TCA reference in the statute at $13,986 (adjusted under subsection 51(3)) and amends multiple provisions to reference that statutory baseline rather than prior descriptions.
Most of the Act is retroactive to January 1, 2025 (with specific earlier or later retroactive dates for certain sections), and it adds ministerial immunity and confidentiality protections for officials administering the Act.
Section-by-Section Breakdown
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Temporary $500 uplift to basic personal amount calculations
This amendment replaces clauses 11(3)(b)–(d) so that the basic personal credit for 2026–2028 is calculated as AP × (TCA + $500) and then returns to AP × TCA computed from the prior year for 2029 onward. Practically, cheque‑out amounts for low‑income taxpayers will be higher in those three years, but the statutory language forces a clear transition back to indexed values, creating a known sunset for the uplift.
Spousal credit: same $500 transitional adjustment plus income‑based floor
The spousal credit calculation is updated to add $500 to the variable TCA for 2026–2028 and continues to reference partner income thresholds and a 10% floor when forming TCA. The formula keeps the income‑based comparison (SI) that limits the credit where a spouse’s income is above the floor, so the temporary $500 increases the starting point but does not remove the existing income sensitivity.
Equivalent‑to‑spouse, dependent child and senior supplementary credits updated consistently
Clauses for the equivalent‑to‑spouse credit, dependent child credit and senior supplementary credit are amended in parallel: a $500 add‑on to Y or the variable TCA for 2026–2028, then reversion to AP × prior‑year indexed Y/TCA from 2029. For dependent child credits the change multiplies the adjusted Y by the number of qualifying children; for seniors the senior supplement follows the same transitional structure. The result is coordinated, temporary uplift across multiple household‑oriented credits.
Statutory baseline and indexing changes
Section 23 replaces the variable TCA description with an explicit $13,986 baseline adjusted under subsection 51(3) for 2026 and subsequent years, and section 39.5 and other amendments harmonize amounts used in multiple clauses by referencing adjusted statutory figures. Additional micro‑adjustments in section 39 amend calculation steps (e.g., multiplying adjusted amounts by 1.05 in multi‑step formulas). These changes reduce ambiguity about the starting dollar amounts used in the credit formulas and tie them formally to provincial indexing.
Fertility treatment tax credit — a one‑time provincial credit
This new section creates a one‑time credit available to Saskatchewan residents, allowing an individual or their cohabiting spouse to claim a credit equal to the lesser of $10,000 and 50% of eligible fertility expenses as defined by the federal Act (including certain deemed expenses). The section specifies a 12‑month period for aggregating expenses, prevents duplicate claims by both partners for the same year, excludes items reimbursable by private insurance, and bars out‑of‑province clinic fees, travel, and reversal of elective sterilization from being claimed.
SME Investment Tax Credit rebate program and administrative rules
Section 67.3 authorizes the minister to accept applications from holders of SMEI tax credit certificates, requires submission of full tax returns and federal assessments, and defines the rebate as the lesser of tax otherwise payable and R = TB − PD (TB being the sum of certificate amounts, PD prior rebates). It imposes multiple limits: no rebates before 2025 or after 2034, a $140,000 per‑certificate cap, a six‑year claim window after issuance, minimum investment thresholds, and exclusions linked to equity raises above set amounts. The minister may adjust rebates after federal reassessments and recover overpayments with interest.
Eligibility windows and application timing
Amendments add timing constraints for rebate applications (three‑year filing windows after the first taxation year the claimant intends to claim) and bar consideration of certain applications tied to patent box or other certificate interactions after specified dates. These rules introduce strict windows that affect eligibility for both SMEs and applicants seeking rebates for prior years.
Crown immunity and confidentiality provisions
The Act adds broad immunity for Crown actors acting 'in good faith' under the Act and a confidentiality rule preventing disclosure of ministerial information except in specified circumstances (evidence of an offence disclosed to Attorneys General). These create legal protections for ministry decision‑makers but also limit external transparency about the minister’s exercise of powers and administrative determinations.
Retroactivity and staggered effective dates
Most provisions come into force on assent but are deemed retroactive to January 1, 2025; section 16 is retroactive to January 1, 2017; parts of section 17 and section 18 come into force July 1, 2025; and certain subsection provisions have other retroactive dates. That mix creates immediate assessment and refund implications for tax years already filed or under audit.
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Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Low‑ and middle‑income Saskatchewan residents claiming the basic personal amount, spousal/equivalent‑to‑spouse, dependent child or senior supplementary credits, because the temporary $500 uplift increases their provincial non‑refundable credits for 2026–2028 and reduces tax payable in those years.
- Individuals or couples undergoing fertility treatment in Saskatchewan, who can claim a one‑time provincial credit up to $10,000 (or 50% of eligible expenses), reducing their out‑of‑pocket costs when the care and services meet the provincial eligibility rules.
- Investors and eligible small and medium enterprises that receive SMEI tax credit certificates, since section 67.3 allows a provincial rebate of tax credit amounts (subject to caps and timing), improving the cash value of certain certificates for qualifying taxpayers.
- Saskatchewan residents who value clarity in credit bases, because the statutory TCA baseline ($13,986) and explicit indexing reduce interpretive uncertainty in credit calculations.
Who Bears the Cost
- The Saskatchewan Treasury, which bears revenue loss from the temporary $500 increases and the fertility credit and which must fund any rebates within the fiscal constraints and caps set in the Act.
- The Ministry of Finance, which must establish application and verification procedures, process SMEI rebate applications, track prior rebates (PD) and manage reassessment adjustments, increasing administrative workload and potential IT/processing costs.
- Taxpayers or investors whose SMEI certificates exceed the statute’s caps, timing windows or minimum investment thresholds — they may find anticipated credits reduced, delayed or ineligible (for example, certificates tied to equity raises over specified limits or investments under $25,000/$50,000).
- Individuals who receive or seek fertility services outside Saskatchewan (including by choice or due to lack of local access), since out‑of‑province clinic fees and travel are excluded and therefore they will not receive the provincial relief.
Key Issues
The Core Tension
The central dilemma is a trade‑off between targeted tax support and administrative/fiscal constraints: the province provides temporary uplifts and new incentives (fertility credit, SMEI rebates) to change behaviour or relieve costs, but it does so through complex, time‑limited formulas, caps and retroactive rules that reduce predictability, complicate compliance, and shift cash‑flow risk onto taxpayers and the ministry rather than delivering simple, broad‑based relief.
The bill bundles temporary tax relief, a new medical expense–linked credit, and a business rebate under a single amendment statute. That combination creates several implementation tensions.
First, retroactivity to January 1, 2025 forces reconciliation against already‑filed returns and federal assessments; the minister can adjust rebates after federal reassessments and demand repayment with interest, which raises practical timing and cash‑flow issues for taxpayers and the ministry. Second, many calculations continue to rely on federal definitions and on subsection 51(3) indexing adjustments — the province ties its math to federal tax figures and indexing mechanics, which can complicate coordination, introduce lag, and require frequent cross‑referencing of federal notices of assessment.
The fertility credit’s eligibility and exclusion list is precise but narrow: it ties eligibility to the federal list of fertility expenses while excluding travel and out‑of‑province providers. That will concentrate demand on in‑province services (which may be capacity‑constrained) and create border effects for patients who previously traveled for care.
The SMEI rebate converts a prospective tax credit into a provincially administered cash rebate but only within strict caps, minimum investment sizes and time windows; the rebate is limited by tax otherwise payable, which disadvantages loss‑making startups and investors without sufficient provincial tax at the time of claim. Finally, the minister’s broad immunity and confidentiality provisions reduce legal exposure for officials but also narrow external oversight and could make it harder for taxpayers to challenge administrative discretion without encountering statutory hurdles.
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