Tax credit for cellulosic ethanol production in Quebec

• The applicant must be a corporation with an establishment in Quebec.
• The company must operate an eligible cellulosic ethanol production business in Quebec.
• The applicant must not be a tax-exempt corporation.
• The applicant must not be a Crown corporation or a wholly controlled subsidiary of a Crown corporation.

Who is eligible?

• Companies with an establishment in Quebec engaged in the production of eligible cellulosic ethanol

Who is not eligible

• Tax-exempt companies.
• Crown corporations or subsidiaries wholly owned by a Crown corporation.
• Companies that have applied for an initial eligibility certificate for the deduction for income from a major investment project for activities resulting from that project.

Eligible geographic areas

• Companies with an establishment in Quebec.

• Step 1: Enter Tax Credit Details in Income Tax ReturnIndicate the name of the cellulosic ethanol production tax credit, its code (90), and the relevant amount on one of lines 440p to 440y of the corporation's income tax return.
• Step 2: Gather Required DocumentationComplete the "Crédit d'impôt pour production d'éthanol cellulosique au Québec" form (CO-1029.8.36.OC).
• Include a monthly report detailing eligible cellulosic ethanol production during the fiscal year in Quebec.
• Attach the "Entente concernant le crédit d'impôt pour production d'éthanol cellulosique au Québec" form (CO-1029.8.36.OD), if applicable.
• Maintain supporting documentation showing that the credit received for a previous fiscal year has been included in revenue calculations, if applicable (do not submit with the return, but keep on file for possible review).
• Step 3: Submit Tax Return and DocumentsAttach all required documents to the corporation's income tax return.
• If unable to attach documents at time of submission, send them separately within twelve months following the filing deadline for that year.
• Indicate the company name, identification numbers, and financial year-end date on all documents if submitting by mail.
• For online submissions via authorized software, paper copies are not required.
• It is recommended to send all documentation in a single submission for faster processing.

• It is preferable to submit all required documents in a single package to expedite file processing.
• If documents are sent by mail, they must clearly indicate the company name, identification numbers, and fiscal year end date.
• Retain proof showing that the tax credit received in a previous taxation year was included in income calculations, as this may be requested but does not need to be attached to the return.
• The corporate income tax return and related documents for this tax credit can also be transmitted electronically using authorized software.