Tax credit for ethanol production in Quebec

• The company must have an establishment in Quebec and operate a qualifying ethanol production business during the tax year.
• The company must not be exempt from income tax.
• The company must not be a Crown corporation or a wholly controlled subsidiary of a Crown corporation.

Who is eligible?

• Corporations operating an eligible ethanol production business in Quebec

Who is not eligible

• Companies that are exempt from tax.
• Crown corporations or subsidiaries entirely controlled by a Crown corporation.
• Companies that have submitted an initial eligibility certificate application for the deduction related to large investment project income, for activities stemming from that project.

Eligible geographic areas

• Companies with an establishment in Quebec.

• Step 1: Enter Tax Credit Information in the Tax ReturnInclude the name of the tax credit for ethanol production in Quebec in the corporate tax return.
• Specify the tax credit code (74) and the corresponding amount on one of the lines 440p to 440y of the return.
• Step 2: Gather Required DocumentsComplete and prepare the form "Crédit d'impôt pour production d'éthanol au Québec" (CO-1029.8.36.OL).
• Prepare a copy of the report detailing, for each month of the fiscal year, the eligible ethanol production carried out in Quebec.
• If applicable, complete the form "Entente concernant le crédit d'impôt pour production d'éthanol au Québec" (CO-1029.8.36.OM).
• Prepare and retain, but do not submit unless requested: a copy of the transport manifest issued to the purchaser if delivery is not made by the eligible company; evidence that the tax credit received for previous fiscal years is included in this year’s business or property income, if applicable.
• Step 3: Submit Application DocumentsAttach all required documents to the company’s tax return.
• If unable to include documents with the tax return, submit them separately no later than twelve months after the filing deadline for that fiscal year.
• You can submit the income tax return and the required application documents electronically through authorized software, in which case paper copies are not required.
• If submitting by mail, ensure each document includes the company name, identification numbers, file number, and the fiscal year-end date.
• It is recommended to send all documents in a single package to expedite processing.

• Applicants cannot claim both the ethanol production tax credit and the investment tax credit or investment and innovation tax credit for assets used in ethanol production.
• An initial eligibility certificate request for a large investment project deduction disqualifies activities resulting from that project from this tax credit.
• All relevant documents should preferably be submitted in a single package to expedite processing.
• Documents may be submitted electronically via approved software; paper documents are not required if this method is used.