Research Consortium Tax Credit
QC, Canada
Tax credit for cooperative pre-competitive research in Quebec
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
- Mining, quarrying, and oil and gas extraction
grant_single|grantors
- Gouvernement du Québec
- Ministère de l'économie, de l'innovation et de l'énergie du Québec (MEIE)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Private-sector partners creating a non-profit consortium for cooperative, pre-competitive research can get a tax credit applicable on 80% of the costs.
grant_single_labels|projects
This grant is specific to companies engaged in precompetitive research activities within the province of Quebec, Canada. The eligible geographical area is thus designated to strengthen the research and development capacity within this region.
- Companies located in the province of Quebec, Canada.
grant_single|admissibleProjectsExample
$144,000
Introducing AI-driven healthcare diagnostics at local clinics
$144,000
Developing a sustainable packaging solution for consumer goods
$148,000
Enhancing cybersecurity measures for financial cooperatives
$112,000
Development of a cost-effective, energy-efficient water purification system
$132,000
Pre-competitive research on bioplastics using agricultural waste materials
$132,000
Collaboration to improve agricultural yield through smart farming technology
grant_single_labels|admissibility
Eligibility for this grant requires the consortium to meet specific criteria related to its structure and operations within the research sector.
- The consortium must be a private, non-profit research center established in Canada.
- It must be primarily funded by member contributions and fees, along with business contracts.
- The consortium activities must focus on generic phases of process, product, or service development.
- It should facilitate cost reduction and risk-sharing for significant research and development projects.
- The consortium needs to utilize specialized resources and equipment to address specific issues.
- It must enhance the technological capacity of the sector concerning international competition.
- There must be a significant representation of financial contributions from its members reflective of the industry sector.
- The consortium cannot be mainly constituted or funded by public or parapublic organizations in the sector.
- The association agreement of the members must include an annual research program meeting scientific and technological interests and ensure research results are accessible and usable by all members.
- The consortium must perform research and experimental development in Quebec that are generic and not directly leading to market-ready results.
- The research results should lead to applications across various industrial sectors or distinct commercially viable products for its members.
- The consortium requires employees with the necessary skills for R&D activities and adequate facilities and equipment in Quebec.
- Only one research consortium per sector can be recognized.
grant_eligibility_criteria|who_can_apply
Eligible applicants for recognition as a research consortium must be private non-profit research centers established in Canada. They should primarily be funded by member contributions and corporate contracts, representative of a specific sector, and not predominantly public or parapublic funded. These consortia must conduct generic scientific research and development activities in Quebec, with results accessible to members for sectoral technological advancement.
grant_eligibility_criteria|eligible_expenses
This grant is aimed at encouraging companies within the same sector or related sectors to either join existing precompetitive research consortia or create new ones. The activities supported by the grant involve collaborative precompetitive research projects conducted in Quebec.
- Engaging in the generic phase of developing processes, products, or services collaboratively.
- Reducing costs and sharing risks associated with large-scale research and development projects.
- Utilizing specialized resources and equipment to solve specific problems.
- Enhancing technological capability within the sector to improve international competitiveness.
grant_eligibility_criteria|zone
The eligible geographic zone for this grant is Quebec.
- All research activities must be conducted within Quebec.
- The consortium must have the required facilities and workforce in Quebec.
grant_single_labels|criteria
- The number of members and their financial contributions should be sufficiently representative of a sector of activity - Public or parapublic organizations operating in the sector should not constitute the majority of members or provide the majority of funding - The association agreement of the members should include the obligation to annually establish a research program that addresses the scientific and technological interests of members and ensures accessibility and usability of research results - The consortium should have a mission to conduct scientific research and experimental development (R&D) in Quebec that is generic and not immediately commercializable - Research results should have potential applications in various industrial sectors and commercially different products - The consortium should have employees with the required skills and facilities to carry out R&D in Quebec
grant_single_labels|register
- Step 1: Gather Required Documents
- Prepare a strategic plan including business development plans, a brief history, and mission with short and long-term goals.
- Create a detailed organizational chart showing the board of directors and committees involved in R&D decisions.
- Collect resumes of research employees.
- List the premises and equipment used for R&D activities.
- Compile financial statements for the last two years.
- Prepare a list of current and targeted members of all categories.
- Demonstrate the consortium's representativity in its sector with relevant statistics and data.
- Step 2: Prepare Application
- Ensure all documents and information are complete and accurate.
- Step 3: Submit Application
- Email the complete application and all required documents to mesures.fiscales.RD@economie.gouv.qc.ca.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- Recognition is limited to one consortium per sector of activity.
- The application process does not incur any fees, as it is free of charge.
- An agreement exists to allow the exchange of necessary information between certain government agencies without requiring consent from the consortium.
- Recognized consortia must notify authorities of changes in human or material resources, member composition, or association agreements to avoid revocation of their status.
Apply to this program
Recognition as an Eligible Research Consortium in Quebec
This recognition aims to incentivize companies within the same or related sectors to join or establish pre-competitive research consortia in Quebec. Eligible companies can benefit from a tax credit related to their contributions to these consortia.
In-Depth Understanding of Research Consortium Recognition and Its Benefits
The initiative to recognize eligible research consortia in Quebec primarily aims to stimulate pre-competitive research among businesses in a specific sector or related sectors. This recognition not only encourages collaboration but also fosters innovation by pooling together resources, knowledge, and expertise to address common challenges and advance scientific research.
An eligible research consortium is defined as a private, non-profit research center established in Canada. It must be primarily funded through member contributions and rights, as well as contracts. Such financial structuring allows the consortium to focus on generic phases of development, including processes, products, or services. This collaborative approach significantly reduces costs and shared risks, paving the way for large-scale research and development (R&D) projects that would otherwise be too expensive or risky for individual entities.
The structure of the consortium plays a crucial role in its recognition. It is essential that the consortium has a membership that is sufficiently representative of its industry sector, both in terms of numbers and financial contributions. Yet, it should not be predominantly composed of or funded by public or para-public organizations working in the same field. This balance ensures independence from public directives and facilitates the focus on innovation driven by industry needs.
The governance of the consortium is also an essential consideration. The membership agreement must include a mandate to annually establish a research program that reflects the scientific and technological interests of all members. The dissemination of research results to all members, allowing them flexibility in using and further developing these results according to their specific needs, underscores the collaborative ethos of the consortium.
Research undertaken by the consortium must represent generic R&D activities that aren’t immediately market-ready. These foundational research efforts are intended to underpin future product or process developments, which individual member companies can later refine and commercialize according to their unique market strategies and requirements.
Infrastructure and expertise are critical components of a recognized consortium. It must possess the necessary workforce, skilled in R&D, along with the physical facilities and equipment to conduct and sustain research activities within Quebec. Such a robust base ensures that research efforts are grounded in capability and competency, necessary for high-quality outputs.
Once recognized, a research consortium can significantly enhance the technological capabilities within its sector, bolstering international competitiveness. The collaborative research environment not only catalyzes innovation but also opens up new pathways for applications across multiple industrial domains, leading to commercially diverse products that are developed by member enterprises as per their strategic goals.
The financial incentive mechanisms for eligible consortia are designed to amplify these benefits. For instance, companies that are members of such a consortium can claim tax credits on their contributions, thus lowering the financial barriers to entry and participation in research activities. Even companies that are not formal members but engage in subcontracted research with the consortium can benefit from a refundable tax credit, further expanding the scope of participation and collaboration.
These initiatives are part of a broader strategy to reinforce innovation and scientific advancement across Quebec, positioning the province as a leader in cutting-edge research with widespread industrial applications. By empowering companies through these structured consortia, Quebec not only boosts its economic prospects but also nurtures a thriving ecosystem for research-driven progress.
