Tax credit for retaining experienced workers
Overview
The grant program offers a tax credit designed to support employers in retaining experienced workers aged 60 and above, with the maximum funding amount determined by the employer's total payroll and meeting specific criteria. Eligible activities include employer contributions for wages or other compensation paid to qualifying employees within a predetermined fiscal year.
At a glance
Funding available
- Improve employee retention
- Reduce the ecological footprint
- Up to 75% of project cost
- Archived
Eligible candidates
- All industries
- Quebec
- For-profit business
- All revenue ranges
- All organization sizes
- All groups
Eligibility
To be eligible for this tax credit, a corporation must meet certain requirements related to its operational status and financial standing.
- The corporation must have an establishment in Quebec and carry on a business there.
- If applying for the tax credit for a fiscal year ending before December 31, 2022, and related to employer contributions paid for 2019, 2020, or 2021, the corporation must have a paid-up capital, including associated corporations if applicable, of less than $15 million at the end of the preceding fiscal year.
- The corporation's paid hours for employees, calculated for the fiscal year, must exceed 5,000 unless it is a primary sector or manufacturing company.
- The corporation must not be exempt from tax for the relevant fiscal year.
- The corporation must not be a Crown corporation or a wholly controlled subsidiary of such a corporation.
Who is eligible?
Eligible applicants for the credit d'impôt favorisant le maintien en emploi des travailleurs d'expérience are companies that meet certain conditions. These include having an establishment in Quebec and operating a business there, with specific criteria regarding their paid-up capital and number of hours remunerated. Excluded entities are those exempt from tax, crown corporations, or wholly-controlled subsidiaries of such corporations. If a company is associated with other companies, they must agree on how to share the eligible or determined expenses for the credit.
Who is not eligible
This tax credit is not available to certain companies based on their tax status and ownership structure. The restrictions ensure that the credit supports businesses most likely to benefit from incentivizing the retention of experienced workers.
- Companies that are tax-exempt for the applicable tax year.
- Crown corporations or entities entirely controlled by a Crown corporation.
Eligible expenses
The eligible expenses for the credit include employer contributions for employees aged 60 and above. These expenses must relate to their remuneration during the fiscal year.
- Employer contributions for employees aged 60 to 64.
- Employer contributions for employees aged 65 and above.
- Expenses must relate to remuneration in the relevant fiscal year.
Eligible geographic areas
Eligible companies are required to have an establishment in Quebec and operate a business there. This regional-specific requirement ensures the support of local economic stability and employment.
- Companies with an establishment in Quebec, Canada.
Selection criteria
There are specific conditions and criteria that must be met for a society to be eligible for the Crédit d'impôt favorisant le maintien en emploi des travailleurs d'expérience, but no distinct evaluation and selection criteria have been mentioned.
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How to apply
Eligibility Verification
- Confirm that your company has an establishment in Quebec and operates a business there.
- Verify that you meet the conditions in terms of payroll and employee age.
Calculation of the payroll
- Calculate the total payroll for the specified calendar year.
- Compare the payroll to the applicable threshold for the calendar year.
- Calculate the eligible or determined rate of the tax credit according to the formulas described.
Gather employee information
- Identify eligible employees determined according to age criteria.
- Calculate the eligible and determined expenses for each eligible or determined employee.
Fill out the tax credit form.
- Complete the form "Tax Credit Encouraging the Retention of Experienced Workers" (CO-1029.8.33.TE).
- If applicable, fill out the form "Agreement Regarding the Tax Credit Encouraging the Retention of Experienced Workers" (CO-1029.8.33.TF).
Submission of the request
Reception of confirmation
- Receive a confirmation of receipt of your request.
- Keep the documentation for follow-up and future reference.
Additional information
A society eligible for the tax credit must have an establishment in Quebec and operate a business there. The credit excludes employer contributions for salaries paid after December 31, 2022.
- The society must not be exempt from tax for the relevant tax year.
- The society must not be a crown corporation or a wholly controlled subsidiary of such a corporation.
- Societies must agree on the distribution method for the admissible or determined expense relative to an eligible employee if they were associated at the end of the relevant calendar year.
- Members of partnerships can also apply for their share of eligible and determined expenses incurred by the partnership towards employees aged 60 or above.
