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Tax credit for ethanol production in Quebec
Last Update: March 4, 2026
Quebec, Canada
Tax credit supporting eligible ethanol production activities in Quebec
Tax Credits
Overview
The Tax Credit for Ethanol Production in Quebec provides eligible corporations with a refundable tax credit for qualifying ethanol produced in Quebec before April 1, 2023; the program is intended to encourage and support local ethanol production activities. The maximum funding amount is not specified in the available information.
At a glance
Funding available
Financing goals
- Reduce the ecological footprint
Eligible Funding
- No Condition
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Manufacturing
Location
- Quebec
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Activities funded
- Production of ethanol at a facility located in Quebec before April 1, 2023.
Examples of admissible projects:
$ 480,000
Expand delivery fleet with refrigerated electric vehicles
$ 80,000
Upgrade bakery equipment to increase gluten-free bread output
$ 108,000
Install rooftop solar panels to reduce community center energy use
$ 35,000
Launch a digital literacy program for seniors using tablets
$ 145,000
Launch accessible coworking space for remote workers with disabilities
$ 210,000
Develop new SaaS platform to streamline small business accounting
Eligibility
- 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.
How to apply
- 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.
Additional information
- 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.
