Additional deduction for transportation costs for manufacturing SMEs

Q: What is the deadline to apply?

The program is accepting continuous intake

Q: Who is eligible for the Additional deduction for transportation costs for manufacturing SMEs program?

To be eligible for the Additional deduction for transportation costs for manufacturing SMEs program, you must: • Must be a Canadian-controlled private corporation. • Manufacturing and processing activities must exceed 25% of total activities. • Paid-up capital must be under $15 million (if fiscal year starts before April 7, 2022) or under $50 million (if after April 6, 2022).

Q: Who can I contact for more information about the Additional deduction for transportation costs for manufacturing SMEs?

You can contact Revenu Québec.

Q: Where is the Additional deduction for transportation costs for manufacturing SMEs available?

The Additional deduction for transportation costs for manufacturing SMEs program is available the province of Quebec.

Last Update: August 19, 2025

QC, Canada

Tax deduction for manufacturing SMEs' transportation costs in remote areas

At a glance

Eligible Funding

Up to 25% of project cost

Timeline

Unspecified

Financing Type

Tax Credits

Eligible Industries

Manufacturing

Funds Providers

Revenu Québec

Program status

Open

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.

Financing terms and conditions

The paid-up capital used to calculate the small business deduction must be less than $15 million if the corporation's taxation year begins before April 7, 2022, or less than $50 million if it begins after April 6, 2022.

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

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

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

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

Gather and attach required documents

Attach all necessary supporting documents as specified in the instructions
Check that all required documentation is present before submission

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.

Apply to this program

Frequently Asked Questions about the Additional deduction for transportation costs for manufacturing SMEs Program

Here are answers to the most common questions about the Additional deduction for transportation costs for manufacturing SMEs. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.