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Saskatchewan Research and Development Tax Credit

<p>Goodman Steel’s combination of engineering and fabrication expertise make us a perfect partner for R&amp;D projects. Find out how we can support your big idea!</p>


Turn Ideas into Dollars with Saskatchewan’s R&D Tax Credit

<p>Saskatchewan is an an exceptionally business-friendly province. Targeted, strategic investment in Saskatchewan’s most promising economic sectors allow businesses and entrepreneurs to test new ideas while mitigating financial risk.</p>
<p>The Saskatchewan government offers a wide range of specialized tax incentives and funding programs targeted to specific industries. It also offers a more generalized <a href="https://www.saskatchewan.ca/business/taxes-licensing-and-reporting/tax-incentives/research-and-development-tax-credit">Research and Development Tax Credit</a>.</p>
<p>This is the focus of today’s article. Many businesses fail to leverage tax credits to their full advantage. Through this broadly applicable tax utility, businesses could save up to $1 million on eligible expenses, while growing their business capacity and ensuring their ability to compete in an ever-changing global market. Goodman Steel is your trusted partner in industrial R&amp;D through our deep experience in developing innovative products and our combined engineering and fabrication capabilities.</p>
<p>We’ll explain the tax credit in simple terms, define activities that may be counted as R&amp;D, and demonstrate how we can support your R&amp;D engineering and fabrication needs.</p>
<h2>Saskatchewan Research and Development Tax Credit overview</h2>
<p>The program offers a 10% <strong>refundable</strong> tax credit for Saskatchewan-based, Canadian-controlled private corporations on their first $1 million investment in R&amp;D projects. Further expenditures receive a 10% non-refundable tax credit. The maximum total credit (combined refundable and non-refundable) that may be claimed is $1 million.</p>
<p>Corporations that are not Canadian-owned private corporations may claim up to $1 million in non-refundable credits, but are not eligible for the 10% refundable credit.</p>
<p>This tax credit is in addition to Federal government R&amp;D programs that may discount your federal corporate tax paid by as much as 15%.</p>
<h2>Example tax credit usage</h2>
<p>An agri-business sees an opportunity to process its crop into a value-added product that will increase its demand and profit margin. It requires unique or highly specialized equipment to do so. In total, they invest $8 million in researching and developing the new equipment and associated processes. Through the Saskatchewan Research and Development Tax Credit, they receive $100,000 in refundable tax credit and $700,000 in non-refundable credit, for a total tax offset of $800,000. This effectively lowers their $8 million investment by 10%, a significant savings. Additional savings through federal programs add even more value.</p>
<h2>What counts as research and development?</h2>
<p>One reason many businesses do not take full advantage of tax incentives is that they do not believe they are eligible. This is particularly true of small businesses whose accounting and legal teams may not actively seek out and seize such opportunities.</p>
<p>Fortunately, research and development is a broad enough concept that many capital expenditures can be included under its umbrella. Here are some of the primary requirements:</p>
<ul>
<li>The process, tool, material, or component to be developed has a specific objective, hypothesis, and methodology for its development. Basically, you have a clear plan and rationale for its development.</li>
<li>Whatever you’re researching or developing must solve a problem that an existing technology does not. That may include improving the efficiency or reducing the environmental impact of a process through new and novel means, or it may mean creating a new process or technology entirely.</li>
<li>The process or technology must offer economic value. That is, it must be a viable and valuable advancement in technology.</li>
</ul>
<p>Typically, only research, prototyping, and product development expenses may be eligible for the tax credit. That is, once a solution has been finalized, the cost of installation and use of the new technology is not eligible for the credit. There are cases where this is not true. For example, if the technology is installed in a pilot plant meant to demonstrate the product’s feasibility, installation and operating costs may still be eligible.</p>
<p>The Government of Canada offers a tool for evaluating whether your capital expenditure counts as SR&amp;ED. This tool will also work for evaluating eligibility for the provincial program, as the requirements are the same. <a href="https://apps.cra-arc.gc.ca/ebci/uisp/salt/ng/entry">Find it here!</a></p>
<h2>How we can support R&amp;D projects</h2>
<p>Often, businesses have big ideas but lack the resources and expertise to explore them. That’s where we can help. Our facility is unique due to its combination of metal fabrication, surface treatment, and engineering capabilities. We can assist in every stage of industrial R&amp;D, from engineering support through to prototyping and production.</p>
<p>In fact, we’ve done it before! We work with potash mining clients to develop specialized drilling equipment that reduces labour overhead and facility downtime, thus increasing profitability. If you think your business can benefit from new technology, give us a call. As a Saskatchewan based R&amp;D partner, we can help you take advantage of generous provincial and federal funding.</p>


An Intro to R&D Tax Credits

Saskatchewan Engineering Consulting

<p>Goodman Steel is not just a full-service machine shop. Our structural engineering team is available for consulting and contract work in any industry.</p>


Hire Contract Engineers

<p>Are you considering hiring a Saskatchewan engineering company for an upcoming project? Many businesses require occasional engineering support, but do not have enough engineering work to hire an in-house engineer.</p>
<p>For companies like this, hiring a contract engineer or engineering consultant can be a great option. These trained engineers assist for the duration of a project without an expectation of continued employment.</p>
<p>Our engineering team offers your business this same benefit, with the added value of on-site fabrication, painting and surface treatments, and mechanical services. Today, let’s look at how Goodman Steel makes a great engineering partner for Saskatchewan businesses.</p>
<h2>Engineering Expertise for Any Saskatchewan Industry</h2>
<p>From agriculture to manufacturing, engineering consulting can benefit nearly any resource-based or industrial business. Over the past sixty years, Goodman Steel has been a trusted partner for businesses across Saskatchewan and Southern Manitoba. Extensive experience in mining, oil and gas, agriculture, and manufacturing mean that when you work with Goodman Steel, you’re getting a practical, pragmatic, and experienced team.</p>
<h2>Driving Industry Innovation</h2>
<p>With a conventional contract engineering firm, you’ll get analysis, diagrams, and due diligence, but the production is left up to you. Our combined engineering and fabrication offer makes Goodman Steel an ideal partner for industrial innovators. If you have a big idea for improving your existing business process, we can help you design, test, prototype, and launch new tools and technology to make your dream a reality. It’s a true one-stop shop for new product development.</p>
<p>We’ve done it before! Our custom products for the mining sector are practical time-saving innovations that reduce downtime and operating costs. If you have a big idea, give us a call.</p>
<h2>In the Middle of Everywhere</h2>
<p>Based in Rocanville, Saskatchewan, Goodman Steel’s facility is located adjacent to major highways and rail lines. We’re situated directly in between Regina and Brandon, MB. This central-but-rural location confers a few benefits to our clients:</p>
<ul>
<li>Strong supply lines. We’re well-connected to the industrial world via rail. Freight from our facility can cross the country in a matter of days, and we’re equipped to receive and stockpile materials at scale and as needed.</li>
<li>Low overhead costs. Doing business outside of the big cities can make a lot of sense. Our low property and labour costs can be passed on to our customers, ensuring competitive pricing against big city firms.</li>
<li>Right where the action happens. We’re central to potash mining, oil and gas exploration, and agricultural projects. Our location exposes us to industry as it happens, ensuring we’re on top of the latest trends and technology. The southern prairie region is also a hotbed for new energy projects, rare earth mining exploration, and much more. We’re a good fit for businesses looking to expand operations in this critical economic region.</li>
</ul>
<p>In fact, we’re less than 4 hours’ drive from the following cities and regions:</p>
<ul>
<li>Brandon, MB</li>
<li>Winnipeg, MB</li>
<li>Moose Jaw, SK</li>
<li>Weyburn, SK</li>
<li>Estevan, SK</li>
</ul>
<p>We also offer contract engineering and engineering consulting services remotely via phone, email, or video conference.</p>
<h2>How our engineers support your success</h2>
<p>Our engineers support Saskatchewan businesses in a wide variety of ways, including:</p>
<ul>
<li>Blueprint/diagram evaluation and sign-off. Get your project moving with contract engineering. Our team can verify your diagrams and legally sign off on structural engineering projects. If we spot any issues, we can work with you to rectify them quickly and affordably.</li>
<li>R&amp;D projects. We’re an ideal fit for industrial innovators with big ideas. We can help you design, spec out, manufacture, and test novel new ideas. We’ll even help you apply for relevant tax incentives and R&amp;D credits!</li>
<li>Retained engineering support. Many businesses require occasional engineering help. We offer packages to allow you to retain the services of our engineering team for a set fee each month. Reduce your payroll overhead with as-needed, flexible engineering help.</li>
<li>Engineering consultancy. You have burning engineering questions. We can get you answers. If you need to consult with an experienced structural or mechanical engineer, we can connect you with our team through an hourly or monthly consultation package.</li>
</ul>


Saskatchewan Industry Profile

Is Helium Saskatchewan's Next Natural Resource Boom?

<p>They say what goes up must come down.</p>
<p>When it comes to helium gas, that isn&#8217;t exactly true. Although helium is one of the most abundant gases in the universe, little of it may be found on earth. When helium vents to open air, it rises&#8230; and doesn&#8217;t stop. Helium accumulates in earth&#8217;s outer atmosphere, leaching into the vacuum of space never to be seen again.</p>
<p>Despite its popular use in party balloons, helium is a critically important resource for a range of medical, industrial and scientific purposes. Generated by the decay of radioactive elements, earth’s remaining supply of helium is underground.</p>
<p>As a large net exporter of natural gas and radioactive elements, Saskatchewan is well-positioned to supply the world with helium. In fact, it may be one of the world’s largest exporters of helium by 2030. Let’s take a look at this burgeoning industry and how it may shape Saskatchewan’s industrial future!</p>
<h2>Why is helium so important?</h2>
<p>Helium is an inert gas with unique physical properties that make it valuable to science and industry. Because it is inert, it’s used as a shielding gas in welding and metal fabrication. Its extremely low melting point makes it an irreplaceable cooling medium for extreme cryogenic applications, such as the superconductive magnets in MRI machines.</p>
<p>There are other gases with similar properties that may be used as a helium replacement, though each has drawbacks that limit its adoption. Hydrogen is too reactive. Both neon and argon are expensive and difficult to extract. For the foreseeable future, helium is a critical strategic resource.<br />
Can Saskatchewan support a helium industry?</p>
<p>Saskatchewan is uniquely suited to helium extraction. Earthly helium is the result of radioactive decay. Featuring the world’s largest uranium deposits, Saskatchewan has plenty of radioactive material to support the generation of helium. As the third-largest Canadian producer of natural gas and second-largest oil province, Saskatchewan also has the infrastructure, workforce, and expertise to extract and refine gas.</p>
<p>The vast majority of helium extracted worldwide comes from natural gas deposits. Natural gas may contain a fraction of a percent of helium, which can be separated during processes. Saskatchewan’s helium potential is so high that it can support helium wells, extraction facilities focused solely on processing helium from otherwise unfit gas deposits.</p>
<p>Per the Saskatchewan government’s 2021 Helium Action Plan, Saskatchewan helium deposits are proven to contain up to 2% helium by volume, with some explorations revealing even higher percentages. This is many times the average concentration found in natural gas deposits, and four times the concentration required to make helium extraction financially viable.</p>
<p>In fact, Saskatchewan’s aggressive action plan sets a goal of achieving 10% global helium market share by 2030, up from 1% today. Not only can Saskatchewan support a helium industry; helium may become a significant economic driver for the province within the decade.</p>
<p>As a final note, Saskatchewan may offer the greenest solution the world’s helium demands. The province’s largest helium deposits are mostly nitrogen based. Nitrogen is not a greenhouse gas. Its extraction is far less carbon intensive than the oil and gas sector, which produces most of the world’s helium.</p>
<h2>Saskatchewan’s helium industry today</h2>
<p>Saskatchewan’s future might be in helium, but the industry is already thriving today. As of 2021, nine dedicated helium wells were in operation, as well as three refinement facilities. 24 more wells are in progress, with industry experts claiming that 100 active helium wells may be feasible by 2030. The economic impact of this expanding sector may account for thousands of high-paying jobs, hundreds of millions in capital investment, and billions in long-term revenue for the province and its workers.</p>
<h2>Government investment in helium R&amp;D</h2>
<p>Unsurprisingly, Saskatchewan’s government recognizes the importance of helium. Their action plan outlines commitments to growing the helium industry, including:</p>
<ul>
<li>Expansion of the Oil and Gas Processing Investment Incentive (OGPII) to include helium and lithium projects, providing up to $75 million in tax credits for helium R&amp;D;</li>
<li>Comprehensive government-led reserves study, helping industry players understand the confirmed, probable, and possible helium reserves in the province;</li>
<li>Establishment of task groups such as the Helium Innovation Commercialization Working Group, a joint industry and government effort to promote made-in-Saskatchewan sector innovation</li>
<li>Collaboration with industry partners to expedite development of liquefaction facilities, so that Saskatchewan can export value-added refined liquid helium</li>
</ul>
<h2>Take advantage of emerging industry sectors with Goodman Steel</h2>
<p>Helium is just one of several exciting sectors poised for massive growth in the province. Rare earth metals, lithium, and manufacturing to support renewable energy development are just a few of the fastest-growing industries in Saskatchewan. Goodman Steel’s all-in-one service offering, from R&amp;D to engineering to fabrication and surface treatment, makes us an ideal partner for those looking to take advantage of industry and government investment in new economic opportunities.</p>
<p>We’re deeply experienced in mining, oil and gas, and manufacturing, capable of engineering and fabricating parts, tools, and structures to nearly any specification. If you need a productive, professional, and affordable partner for industrial projects, get in touch with our team today!</p>


Helium: a misunderstood element

OEM and Custom Agricultural Parts

<p>Goodman Steel produces OEM and custom parts for any Saskatchewan industry, including parts and components for agricultural applications.</p>


Agricultural Parts Manufacturer - Saskatchewan's Source for OEM and Custom Farming Equipment

<p>Goodman Steel is Saskatchewan&#8217;s locally grown supplier of agricultural parts. As a full service metal fabrication shop, we produce OEM and custom parts suited for work on the rugged Canadian prairie. Whether you need replacements ASAP, or are looking for a custom solution to a specific problem, our friendly team is ready to help.</p>
<h2>Benefits of working with Goodman Steel</h2>
<p>Goodman Steel offers a number of benefits over purchasing from other suppliers and manufacturers, including:</p>
<ul>
<li>Custom engineering. Our unique combination of fabrication and engineering services allow us to prototype and manufacture custom solutions at any scale. Talk to us about your wild and crazy idea &#8212; we&#8217;ll make it reality.</li>
<li>Locally owned and operated. We&#8217;re Saskatchewan through and through. When you work with us, you&#8217;re circulating money in our province&#8217;s economy, providing quality employment to locals. Not only that: you&#8217;ll receive the best customer service and support money can buy. Centrally located in Rocanville, we&#8217;re right down the road for many southern Saskatchewan farmers.</li>
<li>Quick turnaround times and local supply chain. We maintain a yard of quality metal feedstock for producing all manner of parts and components. Why wait for out of stock OEM parts when we can machine and deliver them for you without any international shipping issues or duties to be paid?</li>
<li>Structural engineering services. We do a lot more than just parts. If you need custom ladders, walkways, siloes, chutes, or any other structural component, we fabricate and engineer them to the highest standard of safety and durability.</li>
</ul>
<h2>Parts we produce</h2>
<p>We&#8217;re able to engineer and produce any custom parts and components you may need. Some of the components we fabricate include:</p>
<h3>Roller Chains and Sprockets</h3>
<p>Roller or conveyor chains and sprockets are critical components for many agricultural processes, particularly during harvest and processing. Parts failure can result in hours of expensive downtime and damaged or wasted goods. Our background in parts production for mining ensures that we produce chains and sprockets built to last.</p>
<h3>Disc Blades</h3>
<p>Disc blades are a component that may benefit greatly from customization. Every farm has different soil conditions, and every farmer their own preference for soil management. We fabricate plain and notched disc blades to all common specifications, in thicknesses ranging from 14 gauge to 3 gauge. If you have specialized tilling needs, we can customize your blades to best suit your soil conditions and requirements.</p>
<h3>Cultivator Teeth and Tillage Parts</h3>
<p>Whether for aeration, weeding, or other soil treatments, tillage parts take a beating. We design them using the most durable steel and reliable designs available to keep your machines running without interruption, longer. Of course, we can provide any customization you require.</p>
<h3>Anything you need</h3>
<p>At Goodman Steel, we take on all challenges. Even if you need something completely new&#8211; even if you don&#8217;t <em>know</em> what you need &#8212; we&#8217;ll help you get where you need to be. Discuss your project with our expert estimators, or get in touch with our engineering department to discuss a custom project today.</p>


Canadian Industry News and Information

<p>Welcome to the Goodman Steel blog! Here, we discuss a variety of topics relevant to Canadian mining, agriculture, manufacturing, and fabrication. Want to learn more about a particular topic? Give us a shout. We love talking shop!</p>


Canadian Industry News and Information

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Turn Ideas into Dollars with Saskatchewan’s R&D Tax Credit

Engineering Consulting? Goodman Steel Has Your Back

Helium: Saskatchewan's Next Mining Boom?

SK Farming Parts - Goodman Steel - SK Owned & Operated

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