Biggins Lacy Shapiro & Company, LLC

Quebec Canada Economic Development Incentives

DIRECT FINANCIAL ASSISTANCE

Quebec Economic Development Program:  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. 
 
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.
 
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. 

Updated June 2018



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