How much funding can be received?

Funds up to 100% of admissible expenses, capped at $50000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Financing of Refundable Tax Credits?

Financing of Refundable Tax Credits is funded by Gouvernement du Québec, Investissement Québec (IQ)

What are Financing of Refundable Tax Credits's eligibility criterias?

Your business is eligible for tax credit financing if it qualifies for a refundable tax credit. Your business must submit a cash budget that will be deemed sufficient to support the business’s operations.

Financing of Refundable Tax Credits

Last Update: April 5, 2025

QC, Canada

Tax credit advance loan in Quebec

Financing of Refundable Tax Credits at a glance

Eligible Funding

From $50,000 to $50,000
Up to 100% of project cost

Timeline

Open Date : November 14, 2019

Financing Type

Tax Credits

Eligible Industries

Manufacturing
Information and cultural industries
Professional, scientific and technical services

Grant Providers

Gouvernement du Québec
Investissement Québec (IQ)

Status

Open

Overview of the Financing of Refundable Tax Credits program

The Financing of Refundable Tax Credits program offers financial aid covering up to 100% of eligible tax credits, with a minimum loan guarantee of $50,000. It aims to assist businesses involved in activities like scientific research, digital transformation, and knowledge-based economic development.

Financing terms and conditions

The Financing of Refundable Tax Credits program by Investissement Québec offers businesses liquidity solutions through loan guarantees and financing based on their eligible refundable tax credits. This initiative ensures immediate access to funds, enabling businesses to support their operations effectively.

The minimum loan guarantee amount is $50,000 for the Scientific Research and Experimental Development (SR&ED) tax credits and $20,000 for other tax credits.
Financing can cover up to 100% of the refundable tax credits for one fiscal year, or up to two years in exceptional cases.
The maximum duration for financial assistance is generally 18 months from the end of the fiscal year for which financing is provided, extending to 24 months for tax credits related to the knowledge-based economy.
Repayment of the capital amount is directly made from the tax credits to be received.
Loan guarantees are offered, with conditions varying based on the business’s financial situation.
Usual securities are required for loan guarantees.

Eligible projects & activities

The grant supports projects that are eligible for refundable tax credits according to tax legislation in Québec. These initiatives span various economic activities including scientific research, digital transformation, and industrial advancements.

Tax credits for scientific research and experimental development (SR&ED).
Tax credits for the digital transformation of print media companies.
Tax credits related to the knowledge-based economy, such as the Development of E-Business (CDAE) and Production of Multimedia Titles (PMT).
Tax credits related to payroll for Gaspésie and certain maritime regions of Québec (GAS).
Other tax credits, such as investment in manufacturing and processing equipment, construction or conversion of vessels (CTN), technological adaptation services (SAT), and tax credits for the integration of IT (CTIM).

Examples of admissible projects:

$ 50,000

Digital transformation of local newspaper, transitioning to an online platform

$ 50,000

Development of a renewable energy dashboard for small businesses

$ 50,000

Creating a virtual reality (VR) educational tool for middle school students

$ 50,000

Implementation of an e-commerce platform for a regional cooperative

$ 50,000

Development of an advanced water purification system using nanotechnology

$ 50,000

Developing AI software for media detection and classification

Eligibility criteria of the Financing of Refundable Tax Credits program

Your business is eligible for tax credit financing if it qualifies for a refundable tax credit.

Your business must submit a cash budget that will have to be deemed to be sufficient to support the business’s operations.

Who is eligible?

Yes, there are eligible types of companies for this grant. The financing solutions provided by Investissement Québec are designed for businesses that qualify for specific refundable tax credits as per tax legislation.

Businesses eligible for scientific research and experimental development (SR&ED) tax credits
Businesses involved in the digital transformation of print media companies
Businesses within the knowledge-based economy sector, such as those developing E-Business (CDAE) or producing Multimedia Titles (PMT)
Businesses eligible for payroll-related tax credits in Gaspésie and Certain Maritime Regions of Québec (GAS)
Businesses investing in manufacturing and processing equipment
Businesses involved in the construction or conversion of vessels (CTN)
Businesses using technological adaptation services (SAT)
Businesses integrating IT systems (CTIM)

Eligible expenses

This financing solution supports projects eligible for various refundable tax credits in Quebec, aimed at research, digital transformation, economic development, and more. These activities reflect government incentives to foster innovation and economic growth in specific sectors.

Scientific research and experimental development (SR&ED).
Digital transformation of print media companies.
Development of E-Business under the knowledge-based economy.
Production of Multimedia Titles.
Projects related to payroll in Gaspésie and certain maritime regions of Québec.
Investment for manufacturing and processing equipment.
Construction or conversion of a vessel.
Technological adaptation services.
Integration of IT and other specific refundable tax credit projects.

Eligible geographic areas

This grant primarily targets businesses located in the province of Québec, as the funding body, Investissement Québec, focuses its support on this region. The specified tax credits are aimed at fostering economic development within Québec's diverse industries.

Businesses operating within the province of Québec.

Eligibility criteria of the Financing of Refundable Tax Credits program

Your business is eligible for tax credit financing if it qualifies for a refundable tax credit and can submit a sufficient cash budget to support its operations. Specific requirements and consultation with an advisor may be necessary for further details.

Your business must qualify for a refundable tax credit.
Your business must submit a cash budget deemed sufficient to support operations.
Special requirements and consultations with advisors may apply.

How to apply to the Financing of Refundable Tax Credits program

Verification of eligibility criteria

Confirm that your company is eligible for a refundable tax credit.
Assess whether your project falls under eligible categories such as R&D, or digital transformations.

Preparation of the cash budget

Develop a cash flow budget demonstrating the company's ability to sustain its operations.
Ensure that your budget is complete and meets the requirements of the organization.

Contact Investissement Québec

Use the number 1 844 IQINFOS or visit the website investquebec.com for additional information.
Speak to an advisor for detailed guidance on the application process.

Compilation of the application file

Gather all required documents, including the cash flow budget and any documentation proving the eligibility of tax credits.
Complete all sections of the application form provided by Investissement Québec.

Submission of the file

Send all completed documents and the application form to Investissement Québec through a prescribed method (not specified in the provided context).

Additional information

This grant provides immediate liquidity by transforming future refundable tax credits into cash, offering support primarily to businesses in Québec. The financing terms are flexible, and various types of projects and tax credits are eligible for this financial assistance.

Guaranteed repayment of the net loss suffered by a financial institution that granted a loan.
Loan guarantees with variable conditions depending on the business’s situation.
The usual securities are required.