In Short
If your jewellery business in Saskatchewan designs, fabricates, or even just creates a handful of custom pieces each month, you may qualify as a manufacturer. That means you can claim a 6% refundable provincial tax credit on the purchase of eligible equipment, including high-precision tools like laser welders. Unlike many credits, this one pays cash even if your business has little or no taxable income.
What is the MPITC?
The Manufacturing & Processing Investment Tax Credit (MPITC) is Saskatchewan’s incentive program to encourage businesses to invest in production equipment.
◽️ It refunds 6% of the cost of eligible new or used equipment (including PST).
◽️ It’s refundable, so you get the money back even if your corporate taxes are minimal.
◽️ Claims are filed on your corporate T2 return (Schedule 402) for new equipment.
4 Things You Should Know
- Refundable means cash – even low-profit jewellery businesses can get a cheque in hand.
- Custom work counts as manufacturing – if you produce new jewellery pieces (not just repairs), you may qualify.
- Threshold is low – only 10% of gross revenue needs to come from manufacturing/processing.
- Paperwork is manageable – Schedule 402 and purchase invoices is all you need.
Quick Eligibility Checklist
✔ Incorporated in Saskatchewan (Canadian-controlled private corporation or other taxable corporation).
✔ Have a permanent establishment in Saskatchewan (such as a store or a workshop).
✔ Generate at least 10% of revenue from manufacturing/processing (like making custom jewellery).
✔ Equipment is used primarily in Saskatchewan.
✔ Equipment is manufacturing-related: welders, laser engravers, polishers, etc.
Claiming the AITC: Step by Step
Step 1: Gather Documentation
- Proof of incorporation – Incorporation certificate.
- The Investment Tax Credit form – Schedule 402 Code 1801 T2SCH402 (click to view).
- Purchase invoice or Financing agreement (showing the cost and vendor details).
- Installation certificate (proving the equipment is in use).
- Proof that the asset is primarily used for custom jewellery production (e.g. usage letter).
Step 2: Complete Your T2 Tax Return
- Include Schedule 402.
- Enter eligible equipment details (purchase price, date acquired).
- Calculate 6% of the capital cost as your MPITC.
Step 3: Submit your Claim
- Submit Schedule 402 alongside your T2 corporate tax return.
- Excess credit over taxes owed is refunded in cash
- Work with a tax professional to ensure all forms are correctly submitted.
Avoid these common mistakes
Claiming on repairs only – service work doesn’t count as manufacturing.
Filing without showing >10% revenue from manufacturing/custom work.
Forgetting to file Schedule 402.
Not keeping proof of manufacturing activity: if CRA audits, you need proof of custom jewellery production.
Missing the deadline – apply within 3 years of equipment purchase.
Incorrect lease structure: standard rentals don’t count; you need a financing or lease-to-own agreement that treats the equipment as your asset.
What Happens After Filing?
Once submitted, the government will review your claim. If approved, you’ll receive either a reduced corporate tax bill or a cash refund. Refunds can be reinvested immediately into more tools, marketing, or staff. Because it’s refundable, the benefit flows through even in years of low profit.
Final Thoughts
For Saskatchewan jewellers, the MPITC effectively erases PST on production tools, and often pays a bit more. If your business invests in a welder, engraver, or casting machine, this program can return thousands directly to your pocket. The key is making sure your accountant classifies your custom work as manufacturing.
How Does Stygvir Help Your MPITC Claim?
✓ Guaranteed MPITC-Eligible Equipment
Our welders and engravers fall under CCA Class 53, the exact category used for the MPITC.
✓ We Provide the Supporting Paperwork
Filing for MPITC is simple, if you have the right documentation. We provide:
- Installation certificate with "available for use" dates.
- Detailed equipment specifications matching CCA Class 53.
- Delivery records proving purchase and first-use dates.
- Full technical documentation in CRA-friendly format.
✓ Support Beyond the Sale
We’re not just another vendor, we’re helping customers grow. Whether you need technical support to keep your laser running smoothly or business guidance to maximize your MPITC claim, we’ve got your back.
- Expert tech support for seamless operation.
- CRA-compliant documentation for stress-free filing.
- Claim guidance so you don't leave money on the table.
With Stygvir, you get world-class equipment, expert support, and a partner invested in your success – on both the technical and financial side.
Not yet a Stygvir customer?
Not problem! We've written this guide for everyone's benefit. If you do need help selecting advanced manufacturing equipment that goes the extra mile, feel free to reach out. We’re here to help you make the most of your investments.
