Biggins Lacy Shapiro & Company, LLC

Quebec Canada Economic Development Incentives

DIRECT FINANCIAL ASSISTANCE

Quebec Economic Development Program (QEDP):  Provides forgivable and non-forgivable loans generally up to 50% of authorized costs.

Strategic Aerospace and Defence Initiative (SADI):  Forgivable loans for up to 30% of R&D project expenses for companies in the aerospace or defence sectors.

TAX INCENTIVES 

Scientific Research and Experimental Development Tax Credit (SR&ED):  Refundable tax credit available to qualifying companies for up to 14% of eligible research and development activities. 

Tax Credit for the Acquisition of Manufacturing and Processing Equipment:  A partially refundable investment tax credit is available for the acquisition of manufacturing and processing equipment and production computer equipment. Tax credits range from 4% to 24% depending on project location.

Tax Credit for Quebec Maritime Regions:  A refundable job creation tax credit for projects in Gaspésie and certain Québec maritime regions.  Tax credits range from 15% to 30% of payroll for eligible employees depending on project location and industry activity.

Tax Credit for Multimedia Titles:  A refundable tax credit of 26.25% to 37.5% is granted to corporations that produce eligible multimedia titles. To be eligible, a multimedia title must be produced in an electronic medium, be run using software that supports interactivity, and present, in significant proportions, at least three of the following four types of data: text, sound, still images, moving images.

Tax Credit for E-Business:  Tax credit equal to 30% (24% refundable and 6% non-refundable) of payroll to eligible employees in the information system design or software publishing field.

Tax Credit for International Financial Centres:  Refundable tax credits for 24% of new employee salaries up to $16,000 per job per year are available for projects involving an international financial centre in the City of Montréal.

Industrial Research Assistance Program (IRAP): Program consists of 4 subprograms through the National Research Council which provide financial assistance via grants to small or medium-sized businesses in Canada which engage in qualifying research and development. Grants generally cover between 50% and 80% of cost of labor for a qualified research project, with limitations based on subprogram. 

Financing of Refundable Tax Credits:  Companies qualifying for a number of refundable tax credits can receive loans of up to 100% of future anticipated tax credits.  

Foreign Researchers and Experts Tax Holiday:  Five-year personal income tax holiday is available to foreign-based employees engaged in R&D activities in Quebec. The tax holiday provides a 100% exemption from the Quebec provincial income tax for the first two years, then reducing by 25% for the remaining term.

Major Investment Projects:  A corporation or a partnership that carries out a large investment project of $100M or more in Québec may be entitled to a 15-year tax holiday. This tax holiday consists of a deduction in the calculation of taxable income, in the case of a corporation, and an exemption from the employer contribution to the health services fund with regard to the eligible activities relating to such a project, in the case of a corporation or a partnership.

Last updated:  May 2019



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
info@blsstrategies.com