Tax credit for retaining experienced workers
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.
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
- Attract or retain talent
- Reduce environmental footprint
- Up to 75% of project cost
Eligible candidates
- All industries
- Quebec
- For-profit business
- All revenue ranges
- All organization sizes
- All groups
Next Steps
Eligibility
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
Here are the steps to submit an application for the Credit d'impôt favorisant le maintien en emploi des travailleurs d'expérience:
- Step 1: Review Eligibility Criteria
- Ensure that all eligibility requirements are met, including having an establishment in Quebec, and employing workers who fall under the 'eligible' or 'determined' categories.
- Step 2: Gather Required Documentation
- Collect necessary documents such as payroll records and previous year’s capital calculations.
- Ensure the total payroll is calculated as per the stipulations for the eligible year.
- Step 3: Calculate Credit Amount
- Use provided formulas to calculate the credit amount for eligible and determined employees, considering the applicable total payroll thresholds.
- Use examples and tools available, such as the fillable PDF forms, as a guide for calculations.
- Step 4: Complete Necessary Forms
- Fill out "CO-1029.8.33.TE" for claiming the credit and "CO-1029.8.33.TF" if there are any agreements between associated companies regarding employee claims.
- Step 5: Submit Application
- Ensure all required forms are completed.
- Submit the application through the specified online submission portal or address as directed by Revenu Québec instructions.
- Ensure submission is within the specified deadlines.
- Step 6: Await Confirmation
- Upon submission, await a confirmation or notice from Revenu Québec regarding the acceptance of the application.
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.