The provincial government is proposing legislation that would extend the Saskatchewan Technology Startup Incentive (STSI) for five years.

It offers a non-refundable 45 per cent tax credit to individuals, corporations, and venture capital funds that invest in early-stage technology companies. The government says that since launching in 2018, the program has attracted $22 million of investment, and supported the creation of 144 new jobs among 62 eligible companies.

One start-up that has accessed the incentive is Saskatoon-based SalonScale. Their app allows salon owners to weigh, track, and charge for the amount of hair colour they use in real-time. SalonScale raised more than $1 million in seed funding in 2019, with more than $700,000 coming from Startup Incentive investors.

The company has created fourteen new positions since receiving investment and is used by more than 7,000 hair colourists around the world.

In addition to extending the program, the proposed legislation is designed to respond to industry feedback and make the following program enhancements:
” Increase the amount of capital a startup can raise under the program from $1 million to $2 million;
” Set the value of the annual tax credit cap at $2.5 million; and
” Extend the investment holding period from two to three years.
The province says these changes will attract larger investments into the tech sector and create the conditions companies need to thrive.