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Investment and innovation tax credit (IITC)
Tax credit for investment and innovation in Quebec
Last Update: March 4, 2026
Funding available
No Condition
Timeline
- Open continuously
Location
Quebec, Canada
Overview
The Quebec Investment and Innovation Tax Credit offers a variable credit rate of up to 25% for businesses acquiring eligible assets, depending on the region's economic vitality. The program aims to support the acquisition of new manufacturing and processing equipment, information technology equipment, or management software primarily used in Quebec.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Conduct research and development activities
- Optimize production processes
Eligible Funding
- Up to 25% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- All industries
Location
- Quebec
Legal structures
- For-profit business
- Non-financial cooperative
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Canadians
Next steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Acquisition of eligible manufacturing and processing equipment (Category 53 under the Regulation respecting the Taxation Act).
- Acquisition of universal electronic data processing equipment or related operating software (Category 50 under the Regulation respecting the Taxation Act).
- Acquisition of equipment primarily used for processing minerals extracted from resources located outside Canada (Category 43 under the Regulation respecting the Taxation Act).
- Acquisition of eligible management software packages (Category 12 under the Regulation respecting the Taxation Act).
- Acquisition of equipment primarily used for smelting, refining, or hydrometallurgy of minerals, except those from gold or silver mines extracted from a resource located in Canada.
Eligibility
Who is eligible?
- Corporations with an establishment in Quebec operating a business during the tax year
- Partnerships acquiring eligible property, with members who are eligible corporations
Who is not eligible
- Companies that are exempt from tax.
- Crown corporations or subsidiaries wholly controlled by such corporations.
- Aluminum production companies.
- Petroleum refining companies.
Eligible expenses
- Capital costs for the acquisition of a "specified property" (bien déterminé), including:
- Manufacturing and processing equipment (category 53 of Schedule B of the Taxation Act Regulations).
- General-purpose electronic data processing equipment and related operating software (category 50 of Schedule B).
- Eligible management software package (category 12 of Schedule B).
- Equipment used primarily for the processing of ore extracted from mineral resources located outside Canada (category 43 of Schedule B).
- Equipment used primarily for smelting, refining, or hydrometallurgical activities involving ores (excluding gold or silver) extracted from mineral resources located in Canada.
Eligible geographic areas
- Companies with an establishment and business operations in Quebec.
- Specific credit rates apply depending on whether the asset is primarily used in areas of low, intermediate, or high economic vitality within Quebec.
Additional information
- An extension of the deadline for submitting the application form is planned, allowing the submission of form CO-1029.8.36.II until June 30, 2024, or within 183 days following a notice of assessment that refused the credit for a prior year.
- The eligible property must be used in Quebec for a minimum period of 730 consecutive days, except in cases of force majeure (loss, theft, major breakage, accidental destruction, or obsolescence).
- Expenses related to a specific property incurred with persons having a dependency relationship with the corporation or the corporation being a member of a partnership are not eligible in the calculation of the credit.
- The acquisition as part of a joint venture leads to a calculation of the exclusion threshold proportional to the share of the business in the specific property.
Frequently Asked Questions about the Investment and innovation tax credit (IITC) Program
Here are answers to the most common questions about the Investment and innovation tax credit (IITC). 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.
What is the Investment and innovation tax credit (IITC)?
The Quebec Investment and Innovation Tax Credit offers a variable credit rate of up to 25% for businesses acquiring eligible assets, depending on the region's economic vitality. The program aims to support the acquisition of new manufacturing and processing equipment, information technology equipment, or management software primarily used in Quebec.
How much funding can be received?
Investment and innovation tax credit (IITC) Funds up to 25% of admissible expenses.
Who is eligible for the Investment and innovation tax credit (IITC) program?
To be eligible for the Investment and innovation tax credit (IITC) program, you must:
Have an establishment in Quebec and operate a business there.
Have made eligible acquisitions (manufacturing and processing equipment, computer systems, and enterprise resource planning software).
Investments must be related to the company's activities.
What expenses are eligible under Investment and innovation tax credit (IITC)?
Acquisition of eligible manufacturing and processing equipment (Category 53 under the Regulation respecting the Taxation Act).
Acquisition of universal electronic data processing equipment or related operating software (Category 50 under the Regulation respecting the Taxation Act).
Acquisition of equipment primarily used for processing minerals extracted from resources located outside Canada (Category 43 under the Regulation respecting the Taxation Act).
Acquisition of eligible management software packages (Category 12 under the Regulation respecting the Taxation Act).
Acquisition of equipment primarily used for smelting, refining, or hydrometallurgy of minerals, except those from gold or silver mines extracted from a resource located in Canada.
Where is the Investment and innovation tax credit (IITC) available?
The Investment and innovation tax credit (IITC) program is available the province of Quebec.
Is the Investment and innovation tax credit (IITC) a grant, loan, or tax credit?
Investment and innovation tax credit (IITC) is a Tax Credits
Who are the financial supporters of the Investment and innovation tax credit (IITC)?
Investment and innovation tax credit (IITC) is funded by Revenu Québec
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