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Incentive deduction for the commercialization of innovations (IDCI) - Quebec - Canada
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Incentive deduction for the commercialization of innovations (IDCI)

Reduced tax rate for Quebec-based commercialization of innovations
Gouvernment of Québec
Revenu Québec
Last Update: March 4, 2026
Funding available
No Condition
Timeline
  • Open continuously
Location
Quebec, Canada

Overview

The Incentive Deduction for the Commercialization of Innovations (IDCI) offers eligible Quebec corporations a substantially reduced tax rate of 2% on income earned from the commercialization of qualifying intellectual property assets. The program is designed to encourage the retention and valorization of Quebec innovations, covering activities such as the sale, lease, or licensing of patents, copyrights for software, and plant breeder's rights stemming from R&D carried out in Quebec; there is no stated maximum funding amount, as the benefit is delivered through the applicable lower tax rate on qualifying revenues.
/100
Opportunity Score
Moderate potential, but conditions must align.

At a glance

Funding available

Financing goals
  • Conduct research and development activities
  • Access new markets
  • Launch or market a product/service
Eligible Funding
  • Up to 83% of project cost
Timeline
  • Open continuously

Eligible candidates

Eligible Industries
  • Agriculture, forestry, fishing and hunting
  • Manufacturing
  • Information and cultural industries
  • Professional, scientific and technical services
Location
  • Quebec
Legal structures
  • For-profit business
Annual revenue
  • All revenue ranges
Organisation size
  • All organization sizes
Audience
  • All groups

Next steps

1
Determine your project
2
Validate your eligibility

Activities funded

  • Commercialization of patented inventions developed through R&D activities in Québec.
  • Commercialization of software applications created and protected by copyright resulting from R&D in Québec.
  • Commercialization of new plant varieties protected by a plant breeder’s rights certificate, developed through R&D partially or completely conducted in Québec.

Eligibility

Who is eligible?

  • Corporations with an establishment in Québec carrying on a business in Québec
  • Corporations earning income from the commercialization of a qualifying intellectual property asset (such as protected inventions, software, or plant varieties)

Who is not eligible

  • Companies that do not have an establishment in Québec or do not carry on business in Québec.
  • Corporations that do not earn income from the commercialization of a qualifying intellectual property asset.

Eligible expenses

  • Research and development (R&D) expenditures directly contributing to the creation, development, or improvement of a qualifying intellectual property asset carried out in whole or in part in Quebec.
  • Expenses attributable to R&D activities that are reasonably allocable to Quebec establishments.

Eligible geographic areas

  • Quebec

Additional information

  • The IDCI applies a reduced effective tax rate of 2% on the qualifying portion of corporate income derived from the commercialization of eligible intellectual property assets.
  • To benefit from the IDCI, corporations must complete and attach form CO 737.18.CI to their corporate income tax return.
  • The calculation of the deduction involves specific formulas and ratios that factor in R&D expenditures in Quebec, with requirements for detailed documentation.
  • The measure is accompanied by ongoing changes and updates, so applicants should consult the latest official documents and bulletins to ensure compliance with current legislation.

Frequently Asked Questions about the Incentive deduction for the commercialization of innovations (IDCI) Program

Here are answers to the most common questions about the Incentive deduction for the commercialization of innovations (IDCI). 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 Incentive deduction for the commercialization of innovations (IDCI)?

The Incentive Deduction for the Commercialization of Innovations (IDCI) offers eligible Quebec corporations a substantially reduced tax rate of 2% on income earned from the commercialization of qualifying intellectual property assets. The program is designed to encourage the retention and valorization of Quebec innovations, covering activities such as the sale, lease, or licensing of patents, copyrights for software, and plant breeder's rights stemming from R&D carried out in Quebec; there is no stated maximum funding amount, as the benefit is delivered through the applicable lower tax rate on qualifying revenues.

How much funding can be received?

Incentive deduction for the commercialization of innovations (IDCI) Funds up to 83% of admissible expenses.

Who is eligible for the Incentive deduction for the commercialization of innovations (IDCI) program?

To be eligible for the Incentive deduction for the commercialization of innovations (IDCI) program, you must: Must have an establishment and carry on business in Québec Must earn income from the commercialization of a qualified intellectual property asset

What expenses are eligible under Incentive deduction for the commercialization of innovations (IDCI)?

Commercialization of patented inventions developed through R&D activities in Québec. Commercialization of software applications created and protected by copyright resulting from R&D in Québec. Commercialization of new plant varieties protected by a plant breeder’s rights certificate, developed through R&D partially or completely conducted in Québec.

Where is the Incentive deduction for the commercialization of innovations (IDCI) available?

The Incentive deduction for the commercialization of innovations (IDCI) program is available the province of Quebec.

Is the Incentive deduction for the commercialization of innovations (IDCI) a grant, loan, or tax credit?

Incentive deduction for the commercialization of innovations (IDCI) is a Tax Credits

Who are the financial supporters of the Incentive deduction for the commercialization of innovations (IDCI)?

Incentive deduction for the commercialization of innovations (IDCI) is funded by Gouvernment of Québec, Revenu Québec

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