Interim Financing of Tax Credits

Investissement Québec

Businesses that qualify for one of the following tax credits:

• Knowledge-based economy: Development of E-Business (CDAE); Biotechnology Development Centres (CDB); Major Employment-generating Projects in the IT Sector (GPCE); Production of Multimedia Titles (PTM); Technological Adaptation Services (SAT); Information Technology Development Centres (CDTI); Cité Multimédia de Montréal (CMM); New Economy Centres (CNE); Centre national des nouvelles technologies de Québec (CNNTQ); E-Commerce Place (CCE).
• Payroll increase: Aluminum Valley (VA); Gaspésie and Certain Maritime Regions of Québec (GM); Processing Operations in Resource Regions (AT); E-Business Activities (AAE);
• Scientific research and experimental development (SRED): Federal and provincial sections;

Loan guarantee or loan.

Minimum amount of loan guarantee: $50,000 for the SRED tax credits and $20,000 for the other tax credits.

Minimum amount of loan guaranteed by Investissement Québec: $62,500 for the SRED tax credits and $25,000 for the other tax credits.

The loan guarantee can cover up to 80% of the net loss.

The maximum duration for financial assistance is 18 months.

For loans, the amount granted by Investissement Québec may cover up to 75% of refundable tax credits for a given fiscal year.

Eco-Financing

Investissement Québec

Business in one of the following sectors: Manufacturing; New economy (biotechnology, pharmaceuticals, information and computer technologies, aeronautics, aerospace, materials engineering and instrumentation); Research laboratories;  Tourism;  Recycling; Environmental restoration; Waste recovery and processing; Call centres; Aquaculture, sea farming, marine biotechnology and horticultural specialties.

Eligible Projects

• Acquisition of capital assets for greenhouse gas (GHG) reduction
• Working capital expenditures, including R&D for GHG reduction
• Expenditures for the qualification, quantification and certification of offset credits (carbon credits)
• Acquisition of offset credits to comply with your business sector standards

Loan or loan guarantee.

The minimum amount of the loan or loan guarantee provided by Investissement Québec is $50,000.

The maximum duration of the financial assistance is 10 years.

A loan guarantee can cover up to 70% of the net loss, or 75% in outlying regions.*

The maximum amount provided by the financial institution can be up to 100% of project-related expenses, depending on the nature of the project.

For loans granted directly by Investissement Québec, the amount provided can be up to 75% of the total project cost.

* Outlying regions include Abitibi-Témiscamingue, Bas-Saint-Laurent, Côte-Nord, Gaspésie-Îles-de-la-Madeleine, Mauricie, Nord-du-Québec, Outaouais (excluding the municipality of Gatineau) and Saguenay-Lac-Saint-Jean.

The SD Tech Fund ^TM is aimed at supporting the late-stage development and pre-commercial demonstration of clean technology solutions.

Businesses that have expertise in sustainable development technology and are part of a consortium bound by contract.

Foreign interest proposals are also accepted for technologies to be tested in Canada.

Non repayable contribution representing, on average, 33% of project costs.

Two funding rounds a year: August and January.

Two steps: statement of interest and interest proposal.

Note: The application assessment process spans one year.

Grouping of at least two businesses and a university.

Small businesses with less than 50 employees and under $5 million in revenues.

Large corporations may be eligible provided a small business heads the project.

Non repayable contribution.

Maximum: $200,000 per project (37.5% of eligible costs).

Businesses in Canada (without restriction as to the number of employees).

Subsidiaries of international corporations that have been in Canada for at least one year and have an independent administrative centre (intellectual property must remain in Canada).

Repayable contribution that can represent 30% of eligible costs.

Businesses in Canada with less than 500 employees.

Subsidiaries of international corporations that have been in Canada for at least one year and have an independent administrative centre (intellectual property must remain in Canada).

Non repayable financial contribution that can cover up to 50% of R&D expenditures and vary from $5,000 to $350,000.

Businesses in Québec with 200 employees or less.

Non repayable contribution that can cover up to 40% of eligible expenditures (50% for specialized collaborative networks), without exceeding $50,000 per project.

Total government funding may not exceed 50% of total project expenditures (60% in the case of specialized collaborative networks).

Businesses in Québec with 200 employees or less.

Non repayable contribution covering 50% of the employee's wages, without exceeding:

• $15,000 a year for a college degree holder;
• $20,000 a year for a Bachelor's degree holder;
• $25,000 a year for a Master's degree holder or a PhD.

The maximum duration for financial assistance is two years.

Eligible expenditures:

• The wages of employees working directly on an eligible project;
• 50% of the fees paid to a subcontractor conducting R&D for a Québec business;
• 80% of all eligible R&D expenditures incurred under a research contract signed with a university or eligible research centre;
• The fees paid to a research consortium;
• The expenditures made under a precompetitive research project in private partnership.

For R&D:

• Fully refundable basic tax credit covering 17.5% of R&D wages paid in Québec.

For university R&D and consortium R&D:

• Fully refundable tax credit covering 35% of eligible expenditures.

Eligible expenditures:

• The wages of employees working directly on an eligible project;
• The fees paid to a subcontractor conducting R&D for the business;
• The payment made to an accredited association, a university, college, research institute or other accredited organization;
• The cost of materials used for the project;
• The cost of leasing the equipment used for project implementation;
• The overhead directly related to the research;
• The cost of capital assets, such as equipment, where 90% of such assets are used for R&D projects.

Non refundable basic tax credit covering 20% of R&D expenditures.

Partially refundable tax credit covering 35% of the first $3,000,000 segment of annual R&D expenditures by a Canadian-controlled SMB.