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Incentive deduction for the commercialization of innovations (IDCI)
Reduced tax rate for Québec innovation commercialization
Last Update: March 4, 2026
Funding available
Up to 83% of project cost
Timeline
- Open continuously
Location
Quebec, Canada
Overview
The Incentive Deduction for the Commercialization of Innovations (IDCI) offers eligible Québec corporations an effective tax rate of 2% on the qualifying portion of income from commercializing eligible intellectual property assets. It supports the retention and valorization of Québec innovations, including income linked to patented inventions, copyrighted software, and plant varieties developed through R&D carried out in whole or in part in Québec.
/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 qualified intellectual property assets in Québec.
Documents Needed
- Form CO-737.18.CI
- Corporate income tax return
Eligibility
Who is eligible?
- Corporations with an establishment in Québec and business activity in Québec
- Corporations earning income from qualifying intellectual property commercialization
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
- Québec
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 Québec corporations an effective tax rate of 2% on the qualifying portion of income from commercializing eligible intellectual property assets. It supports the retention and valorization of Québec innovations, including income linked to patented inventions, copyrighted software, and plant varieties developed through R&D carried out in whole or in part in Québec.
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:
Established in Québec
Commercializes a qualifying IP asset
What expenses are eligible under Incentive deduction for the commercialization of innovations (IDCI)?
Commercialization of qualified intellectual property assets 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 Government of Québec, Revenu Québec