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Source verified August 4, 2026
Tax credit for external design in Québec
Tax credit for outsourced design activities
Offered by
Funding available
Up to 24% of project cost
Deadline
Open continuously
Location
Quebec, Canada
Overview
The Crédit d’impôt pour la réalisation d’une activité de design à l’externe offers a 12% to 24% tax credit to eligible corporations with an establishment in Quebec for external design work under contract with an eligible external consultant. Eligible costs include certain contract expenses for design or pattern-making work carried out in Quebec.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop an online presence
- Reduce environmental footprint
- Renovate or expand facilities
Eligible Funding
- Up to 24% of project cost
Funds Providers
Eligible candidates
Eligible Industries
- All industries
Location
- Quebec
Legal structures
- For-profit business
Annual revenue
- $ 150,000 minimum revenue
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- External design activities carried out under a contract with an eligible external consultant.
- Pattern-making activities provided for in the contract and carried out by the consultant in Quebec.
Documents Needed
- Form CO-1029.8.36.5
- A copy of the eligibility certificate issued to the eligible corporation for the taxation year for a design activity
- A copy of the qualification certificate issued to each eligible external consultant
- Supporting records to keep and provide on request, including the organizational chart of associated and related entities, invoices and proof of payment, and the contract or agreement with each eligible external consultant
- Lists of eligible external consultants and of the employees who performed the work, plus proof that business or property income includes any prior-year credit received during the year, if applicable
Eligibility
Who is eligible?
- Corporations with an establishment in Quebec.
- Corporations operating a business in Quebec with gross income of at least $150,000 per year.
- Corporations holding an eligibility certificate for an external design activity for the taxation year.
- Corporations that are members of a partnership may claim the credit for their share of partnership expenses.
Who is not eligible
- Tax-exempt corporations.
- Crown corporations and wholly controlled subsidiaries of Crown corporations.
Eligible expenses
- When the corporation and the eligible external consultant do not deal at arm’s length, the eligible expense is the portion of the contract cost attributable to salary paid by the consultant to an eligible designer or eligible pattern maker holding a qualification certificate and reporting to work at one of the consultant’s establishments in Quebec.
- The eligible annual salary is capped at $60,000 for a designer and $40,000 for a pattern maker.
- When the corporation and the eligible external consultant deal at arm’s length, the eligible expense is 65% of the part or all of the contract cost attributable to a design or pattern-making activity provided for in the contract and carried out by the consultant itself in Quebec.
Ineligible Costs and Activities
- Industrial design expenses, including salary or any other expense incurred under a contract with an eligible external consultant, are ineligible for a taxation year or fiscal period beginning after March 25, 2025.
Eligible geographic areas
- Quebec
How to apply
- Complete form CO-1029.8.36.5 and enter the credit name, code 10, and amount on one of lines 440p to 440y of the corporate income tax return.
- Attach the prescribed documents to the corporate income tax return.
- If you cannot attach the prescribed documents to the return, send them no later than the later of 12 months after the filing deadline or 3 months after the attestation is issued.
- Submit the return and related documents online using authorized software or send them by mail.
Processing and Agreement
- Certain supporting documents do not need to be attached to the return, but they must be prepared and kept in case Revenu Québec requests them.
- The claim will be accepted and processed if all copies of the prescribed form are submitted within the 12-month or 3-month deadline, as applicable, and all required attestations have been duly obtained.
- Revenu Québec will process the claim only after receiving the copy of the required attestation.
- Sending all documents in a single submission helps speed up file processing.
Additional information
- The design activity attestation must be renewed for each taxation year or fiscal period.
- Designer, pattern maker, and consultant attestations do not need annual renewal.
Contacts
Frequently Asked Questions about the Tax credit for external design in Québec Program
What is the Tax credit for external design in Québec?
The Crédit d’impôt pour la réalisation d’une activité de design à l’externe offers a 12% to 24% tax credit to eligible corporations with an establishment in Quebec for external design work under contract with an eligible external consultant. Eligible costs include certain contract expenses for design or pattern-making work carried out in Quebec.
How much funding can be received?
Tax credit for external design in Québec Funds up to 24% of admissible expenses.
Who is eligible for the Tax credit for external design in Québec program?
To be eligible for the Tax credit for external design in Québec program, you must:
The corporation must have an establishment in Quebec and operate a business there.
The corporation must have gross income of at least $150,000 per year.
The corporation must hold an eligibility certificate for an external design activity for the taxation year.
What expenses are eligible under Tax credit for external design in Québec?
External design activities carried out under a contract with an eligible external consultant.
Pattern-making activities provided for in the contract and carried out by the consultant in Quebec.
Who can I contact for more information about the Tax credit for external design in Québec?
You can contact Revenu Québec by email at design@economie.gouv.qc.ca.
Where is the Tax credit for external design in Québec available?
The Tax credit for external design in Québec program is available the province of Quebec.
Is the Tax credit for external design in Québec a grant, loan, or tax credit?
Tax credit for external design in Québec is a Tax Credits