How much funding can be received?

Funds up to 25% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Investment and innovation tax credit (IITC)?

Investment and innovation tax credit (IITC) is funded by Revenu Québec

What are Investment and innovation tax credit (IITC)'s eligibility criterias?

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.

Investment and innovation tax credit (IITC)

grant_single|update April 18, 2025

QC, Canada

Tax credit for investment and innovation in Quebec

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Tax Credits

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Revenu Québec

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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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The tax credit rate varies according to the project timelines and economic vitality of the territory:For eligible expenses incurred before March 26, 2021: 20% (low vitality area), 15% (intermediate), 10% (high).
For expenses between March 26, 2021 and December 31, 2023: 40% (low), 30% (intermediate), 20% (high).
For expenses after December 31, 2023: 25% (low), 20% (intermediate), 15% (high).
The eligible investment must exceed an exclusion threshold:$5,000 for assets in category 50 or eligible management software packages.
$12,500 for all other assets.

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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.

grant_single|admissibleProjectsExample

$ 125,000

Introduction of advanced automation technology for manufacturing

$ 90,000

Acquisition of data processing equipment to upgrade IT infrastructure

$ 60,000

Investing in an ERP software system to streamline operations

$ 75,000

Acquiring new CNC machines for precision manufacturing with advanced features

$ 100,000

Upgrading mineral processing equipment at the mining facility

$ 40,000

Procurement of customer relationship management software for enhanced client handling

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The applicant must be a corporation with an establishment in Quebec and must be carrying on business there during its taxation year.
The applicant cannot be a tax-exempt corporation.
Excluded entities: Crown corporations or their wholly controlled subsidiaries, aluminum production companies, and oil refining companies.
If the asset is acquired by a partnership, the partnership must meet eligibility conditions and the credit will be granted to its corporate members.

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Corporations with an establishment in Quebec operating a business during the tax year
Partnerships acquiring eligible property, with members who are eligible corporations

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Companies that are exempt from tax.
Crown corporations or subsidiaries wholly controlled by such corporations.
Aluminum production companies.
Petroleum refining companies.

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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.

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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.

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Different credit rates apply based on when the eligible expenses were incurred and the economic vitality of the location where the asset is mainly used.
If an asset was acquired via a written obligation before January 1, 2024, or its construction began before January 1, 2024, it may still qualify for higher rates if certain conditions are met.
Specific exclusions apply to assets if they were acquired or construction began based on certain historical dates (March 10, 2020; March 25, 2021; December 31, 2023).
The definition of eligible expenses ('frais déterminés') excludes amounts paid to related parties or linked shareholders/members, depending on the company’s or partnership’s structure.
A minimum period of use in Quebec (typically 730 consecutive days) is required for assets to remain qualified, unless involuntary loss or destruction occurs.
The threshold for excluded costs varies by asset class ($5,000 for category 50 or eligible management software; $12,500 for others), and may be prorated if the asset is jointly held.
There has been an extension to the deadline for submitting the claim form (CO-1029.8.36.II) for past expenses, allowing companies to resubmit under certain conditions (up to the latest of 183 days after a relevant notice or June 30, 2024).
Resubmitted claims, if accepted, will be considered as first requests for purposes of interest calculation on eligible credit amounts.