Financing of Refundable Tax Credits

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.

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.

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.

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.