What ESSOR – Component 1C Can Fund in Québec: Eligible Costs and Limits
ESSOR – Component 1C (Investissement Québec, in partnership with the Ministère de l’Économie, de l’Innovation et de l’Énergie) provides a non-repayable contribution to implement projects arising from a recent digital plan. This program helps Québec organizations translate their digital roadmap into concrete productivity gains and best-practice adoption. Understanding exactly what ESSOR 1C can fund is essential to build a compliant budget and maximize reimbursement.
This guide details eligible expenses, ineligible costs, funding amounts and rates, documentation requirements, examples of funded projects, stacking rules with other government aid, and practical budgeting tips. It reflects the official application guide for ESSOR – Volet 1C and uses program terminology such as eligible expenses, non-repayable contribution, cost share, and government aid stacking.
Program Funding Overview
Purpose: Support implementation projects that come directly from an approved digital plan prepared under ESSOR Sub-Component 1B, with a focus on productivity, process optimization, and adoption of best business practices.
Model: Non-repayable contribution (grant/subsidy).
Geography: Province of Québec; applicants must meet Québec registration and activity requirements.
Timing: Projects must start within three months of authorization and be completed within 12 months. Costs incurred before the application is transmitted are not eligible.
Status: ESSOR is active with rolling intake, and financial assistance is subject to budget availability. As of the current cycle, program authorizations are planned through March 31, 2027.
Definition snippet (plain language): ESSOR – Component 1C is a Québec funding stream administered by Investissement Québec and MEIE that reimburses a share of external professional fees and related travel to implement projects from a recent digital plan, subject to caps and stacking limits.
Funding Amounts & Rates
ESSOR 1C funding is calculated as a percentage of eligible expenses and capped per project. The program uses declining rates for successive projects and applies strict stacking rules.
Type of aid: Non-repayable contribution toward eligible costs.
Aid rates by project sequence:
First 1C project: up to 50% of eligible expenses
Second 1C project: up to 40% of eligible expenses
Third and subsequent 1C projects: up to 30% of eligible expenses
Maximum per project: Up to $50,000 per project (subject to program rules).
Minimum private contribution: At least 50% of eligible expenses must come from private sources (cash or the applicant’s own funds). This minimum applies regardless of stacking.
Project duration: Maximum 12 months; must begin within three months after authorization.
Note on timing: The program specifies that expenses incurred before the application is transmitted are ineligible. In practice, only expenses incurred within the eligible window defined by your acknowledgement and/or letter of offer will be reimbursed. Your letter of offer governs final dates.
Eligible Expenses
ESSOR – Component 1C focuses on implementation activities that directly execute your digital plan (from 1B) to improve productivity and processes. The funding scope is intentionally narrow, centring on external professional services and essential travel/sejour required to deliver the project.
External professional fees (consulting firms)
Professional services provided by external consulting firms are eligible when they:
Execute actions explicitly arising from your 1B digital plan.
Drive measurable productivity improvements, process optimization, and adoption of best practices.
Comply with Québec’s management policy requirements for professional services.
Typical eligible activities within professional services include:
Solution implementation and configuration services to operationalize plan recommendations (for example, parameterization of an ERP module identified in the plan, or deployment of a standardized CRM workflow aligned to the plan).
Business process mapping, redesign, and standardization to support digital adoption.
Integration services between existing systems when the integration is essential to implementing the plan’s processes and outcomes (for example, connecting inventory data to order management defined in the plan).
Knowledge transfer and coaching from the consulting firm to your team to ensure the implemented processes are adopted.
Project governance and advisory delivered by the external firm that is necessary to manage scope, quality, and change for the plan’s implementation.
Testing, validation, and go‑live support activities performed by the consulting firm as part of implementing the plan.
Documentation deliverables that capture the implemented processes, configurations, and required operating procedures.
Important boundaries for professional services:
The services must be tied directly to the plan’s actions and outcomes.
Routine maintenance, minor upgrades, or general IT support that do not implement a plan action are not eligible.
Development of fully custom software is not eligible (see ineligible expenses section).
Installation of physical equipment is not eligible under 1C.
Travel and sejour costs linked to the project
ESSOR 1C recognizes reasonable travel expenses for project needs when they comply with Québec government directives. These include:
Transportation for project participants (external consultants and, when justified for project delivery, organizational staff) where travel is required to execute the implementation mandate.
Private vehicle use at published per‑kilometre rates. For reference, program guidance for 2024–2025 indicated approximately $0.62–$0.635 per km for the first 8,000 km and about $0.545–$0.56 per km thereafter, reduced to $0.17 per km if public transit was reasonably available but not used.
Hotel stays within daily maximums by location and season. As a reference, published daily caps have included values such as approximately $161 in Montréal during low season and $177 in high season, with different caps for Québec City and other municipalities. Seasonal definitions have typically been November 1 to May 31 (low) and June 1 to October 31 (high).
Meals at daily per diem caps. As a reference, recent guidance indicated breakfast $14.70, lunch $20.20, dinner $30.50, total $65.40 per day, taxes and tips included.
Notes on travel and sejour:
Choose the most economical option that still enables delivery (for example, favour public transit when it is more economical).
Keep detailed receipts and itineraries. Per‑diem and kilometre rate claims require strict adherence to the published rates at the time of travel.
Only travel directly necessary to implement the plan’s activities is eligible.
Ineligible Expenses
ESSOR – Component 1C explicitly excludes a variety of costs. Budget carefully to avoid non‑reimbursable items.
General timing and financial exclusions:
Any expense incurred before the application is transmitted is ineligible, including amounts for which you have already signed contracts or made commitments.
Capital expenditures and depreciation/amortization.
Internal company expenses, including salaries, benefits, and internal labour time.
Debt service, repayment of loans, capital losses or replacements, and any payment treated as capital.
Sales taxes.
Project scope exclusions specific to 1C:
Human resources function activities (for example, HR policy design, HRIS implementation unless explicitly mandated by the plan and compliant with the 1C scope rules; as a rule, HR function activities are excluded).
Market development activities outside Québec (international business development).
Installation of equipment and physical deployment of hardware.
Development of custom/bespoke software solutions.
Routine improvements, minor updates, or upgrades of an existing technology solution that do not represent implementing an identified plan action.
Development of a transactional website (e‑commerce build).
Keep in mind: If your plan recommends buying licenses or equipment, ESSOR 1C does not fund those purchases. The 1C stream focuses on external professional services and eligible travel necessary to implement the plan’s actions.
Expense Documentation Requirements
To claim reimbursement, maintain audit‑ready records. The program requires precise documentation for each eligible cost line, typically including:
Signed offer(s) of service from consulting firms that meet the required content structure (for example, mandate title, context, objectives, deliverables, milestones with start/end dates, fees per phase, hours and rates or fixed fee, exclusions). Offers must be in French when issued by Québec service providers.
Detailed invoices from consulting firms that reference the mandate, dates of service, deliverables or tasks performed, hours and rates or milestone amounts, and taxes shown separately.
Proof of payment for each invoice (for example, cleared EFT confirmation, cancelled cheque image or bank statement showing the payment).
For travel: itemized receipts for hotels and meals, travel itineraries, and claimed per‑diem calculations; for private vehicle use, kilometre logs with dates, origins/destinations, and total kilometres. Ensure your rates align with the applicable period’s caps.
Project artefacts demonstrating linkage to the digital plan actions (for example, excerpts of the 1B plan indicating the implemented action, governance minutes, testing evidence, go‑live sign‑offs).
Any additional documentation required by Investissement Québec, as described in your letter of offer.
Retention: Keep all records for the period specified in your agreement. Ensure consistency between invoices, offers of service, timesheets (if applicable), and claim summaries.
Examples of Funded Projects
Below are realistic examples aligned to the program scope. All examples assume the project stems directly from a recent digital plan (1B) and consists of external professional services and eligible travel.
Manufacturing (ERP execution)
Professional services to configure and deploy a standardized production planning module identified in the plan, including process mapping, parameterization, test cycles, go‑live support, and knowledge transfer to production supervisors.
Integration services to connect ERP with an existing inventory system specifically called for by the plan.
Eligible travel for the consulting team to conduct onsite workshops at the plant, within published caps.
Distribution and warehousing (WMS rollout)
External experts implement scanning and receiving workflows, slotting rules, and KPI dashboards defined in the plan to reduce picking errors and dwell time.
Governance and change management coaching provided by the consulting firm to warehouse leaders.
Validation, documentation, and supervisor coaching sessions billed as professional services.
Professional services firm (CRM process standardization)
Consulting services to implement opportunity stages, templates, and reporting specified in the plan; creation of standardized intake and qualification rules.
Cross‑system integration to sync client records with an existing billing system as outlined in the plan.
Onsite workshops and targeted training delivered by the consulting firm, with eligible travel claimed under per‑diems.
Food processing (traceability and QA processes)
External process redesign and system configuration to implement batch traceability and QA checkpoints identified in the plan, including pilot testing and SOP documentation.
Consultant‑led go‑live support across two shifts; eligible travel to the plant.
Public‑facing service provider (cybersecurity posture implementation)
Consultant services to implement MFA enforcement, endpoint protection policies, and incident response runbooks specified in the plan.
Knowledge transfer and tabletop exercises conducted by the firm to operationalize the new controls.
Note: Licenses, hardware, and internal staff time in all the above are not eligible under 1C; only the consulting firm’s professional services and necessary travel/sejour are claimable.
Funding Disbursement & Claiming Process
Disbursement is governed by your letter of offer and the program’s reimbursement rules.
Agreement: Upon approval, you will receive a letter of offer detailing eligible cost categories, project dates, reporting requirements, and payment conditions.
Claim windows: Submit claims as instructed (for example, at milestones or at project end). Follow prescribed templates if provided.
Claim package: Typically includes a summary of costs by category, invoices, proof of payment, travel logs and receipts, deliverable evidence, and any required attestations.
Review: Investissement Québec may request clarifications or additional documentation. Respond within stated timelines to avoid delays.
Payment: Reimbursement is issued for approved eligible costs up to the authorized percentage and cap. Cost overruns are not funded.
Changes: Any scope, timeline, or budget change must be requested in writing before incurring the affected expenses and within the authorized project period. Obtain written authorization before proceeding.
Stacking Rules
ESSOR applies strict stacking (cumul des aides) to ensure public funding does not exceed thresholds.
Maximum government aid: Up to 50% of eligible expenses from all government sources combined (provincial, federal, municipal, energy distributors, and entities managing government funds).
Valuation for stacking:
Non‑repayable aid (grants, subsidies, tax credits treated as grants) counts at 100% of its value.
Repayable aid (loans, convertible unsecured debentures, repayable contributions, and guarantees) counts at 50% of its value for stacking calculations.
Private contribution: Regardless of stacking, at least 50% of eligible expenses must be financed by private sources (cash or own funds).
Tip: If you are combining ESSOR with other programs (for example, a federal advisory grant), ensure your combined public support remains within the 50% stacking limit and that cost allocation avoids double counting.
Real‑World Budgeting Tips
Anchor every cost line to a plan action: Invoices should clearly map to a 1B digital plan recommendation. This tight linkage strengthens eligibility.
Scope professional services precisely: Break down phases and deliverables in the offer of service. Identify hours/rates or fixed fees by phase to simplify claims and audits.
Separate ineligible items upfront: Exclude licenses, equipment, and internal salaries from the ESSOR budget. Track them in your internal budget or in other funding streams.
Use per‑diems correctly: Apply the kilometre, meal, and hotel caps valid at the time of travel. Keep logs and receipts. Choose economical options to avoid scrutiny.
Plan for timing: Do not incur costs before your application is transmitted. Adhere to the start‑within‑three‑months and finish‑within‑twelve‑months rules.
Consider multiple projects sequencing: If your plan contains several implementation streams, sequence them strategically. The first 1C project has the highest reimbursement rate (up to 50%).
Monitor stacking early: If you are layering programs, maintain a stacking worksheet to track public vs. private shares on each invoice.
Prepare for verification: Maintain a claims binder with offers of service, change approvals, invoices, proofs of payment, deliverables, and travel records.
Conclusion
ESSOR – Component 1C funds external professional services and necessary travel to implement actions from a recent digital plan, with clear boundaries on what is eligible. The non‑repayable contribution can cover up to 50% of eligible expenses for a first project, up to a $50,000 cap, subject to stacking and private contribution rules. By aligning activities tightly to your 1B plan, scoping consulting mandates clearly, and documenting travel within government caps, you can maximize eligible costs and streamline reimbursement. Always follow the dates and conditions set in your letter of offer, and verify any edge cases with Investissement Québec before incurring expenses.
