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Additional deduction for transportation costs for manufacturing SMEs
Last Update: March 3, 2026
Quebec, Canada
Tax deduction for manufacturing SMEs' transportation costs in remote areas
Tax Credits
Overview
The Additional Deduction for Transportation Costs for Manufacturing SMEs provides a tax deduction to eligible Canadian-controlled private corporations operating in remote or intermediate regions, with manufacturing and processing activities exceeding 25% of overall activities. The program supports companies whose taxable capital does not exceed $15 million (for fiscal years beginning before April 7, 2022) or $50 million (for fiscal years beginning after April 6, 2022), helping them offset transportation expenses related to their manufacturing operations; the specific maximum deduction amount is not disclosed.
At a glance
Funding available
Financing goals
- Optimize production processes
Eligible Funding
- Up to 25% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Manufacturing
Location
- Quebec
Legal structures
- For-profit business
Annual revenue
- $ 50,000,000 maximum revenue
Organisation size
- All organization sizes
Audience
- Rural or Northern Residents
Activities funded
- Execution of manufacturing or processing activities by an SME in designated areas (particularly remote, remote, intermediate, or central).
Eligibility
- The company must be a Canadian-controlled private corporation throughout its taxation year.
- More than 25% of the company's activities during the taxation year must be in manufacturing and processing.
- The company’s taxable capital employed in Canada must be less than $15 million (for taxation years beginning before April 7, 2022) or less than $50 million (for taxation years beginning after April 6, 2022).
- The company's principal manufacturing activities must take place in a designated remote, particular remote, intermediate, or central zone.
Who is eligible?
- Canadian-controlled private corporations (manufacturing SMEs)
- Companies engaged primarily in manufacturing and processing activities
Eligible geographic areas
- Companies operating in the designated remote, intermediate, or central zones as defined by the program.
How to apply
1
Verify eligibility criteria
- Verify that your company has been a Canadian-controlled private corporation throughout the taxation year
- Confirm that more than 25% of your activities are related to manufacturing and processing for the taxation year
- Ensure that the paid-up capital used in the small business deduction calculation is less than $15 million if the fiscal year starts before April 7, 2022, or less than $50 million if after April 6, 2022
- Validate that major manufacturing activities are carried out in specified remote, intermediate, or central zones
2
Obtain and review application form
- Download form CO-156.TR (fillable PDF version or standard PDF) from the official government website
- Read all form instructions carefully before proceeding
3
Complete the application form
- Complete the CO-156.TR form with all requested information about company, manufacturing activities, and transportation costs
- Ensure the information entered is accurate and up-to-date
4
Gather and attach required documents
- Attach all necessary supporting documents as specified in the instructions
- Check that all required documentation is present before submission
5
Submit application with tax return
- Submit the completed CO-156.TR form and all supporting documents with your corporate income tax return for the relevant fiscal year
- Retain copies of all forms and documents for your records
Additional information
- The downloadable documents related to this deduction may not fully comply with web accessibility standards.
- If you experience difficulty using the documents, you are encouraged to contact the relevant authority for assistance.
