Tax credit for biodiesel production in Quebec

• The company must have an establishment in Quebec and operate a business that produces eligible biodiesel in Quebec during its taxation year.
• The company must not be exempt from tax for the taxation year.
• The company must not be a Crown corporation or a wholly controlled subsidiary of such a corporation.

Who is eligible?

• Corporations operating a biodiesel production business in Quebec

Who is not eligible

• Companies that are exempt from income tax for the taxation year.
• Crown corporations or wholly owned subsidiaries of such corporations.
• Companies that have applied for an initial eligibility certificate for the deduction related to income from a major investment project, for activities resulting from that specific project.

Eligible geographic areas

• Quebec

• Step 1: Enter Credit Information in Tax ReturnReport the biodiesel production tax credit on one of lines 440p to 440y of the corporate income tax return.
• Include the name of the tax credit, its code (103), and the amount claimed in the designated fields.
• Step 2: Gather Required DocumentationComplete and attach the form "Crédit d'impôt pour production de biodiesel au Québec" (CO-1029.8.36.OB).
• Prepare a monthly report for the fiscal year detailing the company’s eligible biodiesel production in Quebec.
• Attach the form "Entente concernant le crédit d'impôt pour production de biodiesel au Québec" (CO-1029.8.36.OE), if applicable.
• Step 3: Submit Application and Supporting DocumentsInclude all required forms and supporting documentation with the company’s corporate income tax return.
• If documents cannot be attached to the tax return, send them separately no later than twelve months after the company's filing deadline.
• Applications and documents can be sent online using certified software or by mail.
• For mail submissions, clearly indicate the company name, identification numbers, and fiscal year-end date on all documents.
• It is advisable to send all documents together in one package for faster processing.

• A corporation eligible for this tax credit cannot claim the investment tax credit or the investment and innovation tax credit for property used in operating a biodiesel production facility in Quebec.
• If a corporation has applied for an initial eligibility certificate related to the deduction for income from a major investment project, it cannot benefit from this biodiesel production tax credit for activities related to that project.
• If sending documents by mail, each document must include the company name, identification and file numbers, and the closing date of the financial year.
• It is preferable to submit all required documents in a single package to speed up processing.