Tax credit for design in Quebec
At a glance
- 65% of project cost
- Open Date : November 14, 2019
- All industries
- Gouvernement du Québec
- Revenu Québec
Overview
Eligibility criteria
In order to be eligible for the tax credit, a company must have an establishment in Quebec, operate a business with gross revenue of at least $150,000 per year, and hold a certification of eligibility for a design activity issued by the Minister of Economy, Innovation, and Energy.
- The company must have an establishment in Quebec and operate a business with annual gross revenue of at least $150,000.
- The company must hold a certification of eligibility for a design activity issued by the Minister of Economy, Innovation, and Energy.
- The company should not be exempt from tax or be a Crown corporation or a subsidiary fully controlled by a Crown corporation.
- A designer or pattern maker must receive an eligible salary, with maximum amounts specified, and hold a qualification certification from the Minister of Economy, Innovation, and Energy.
Who is eligible
Eligible companies for this grant must have an establishment in Quebec, operate a business with gross revenue of at least $150,000 per year, and hold a eligibility certificate related to design activity issued by the Minister of Economy, Innovation, and Energy.
- Companies with assets totaling $50 million or less
- Companies with assets totaling $75 million or more
- Companies with assets between $50 million and $75 million
Who is not eligible
Some types of companies are not eligible for this grant. These include:
- A company that is tax-exempt
- A Crown corporation or a subsidiary wholly controlled by such a corporation
Eligible expenses
Eligible expenses for this grant include salaries paid to eligible designers or pattern makers who hold a qualification certificate and work at the company's establishment in Quebec. The maximum eligible salary is $60,000 for a designer and $40,000 for a pattern maker.
- Salaries paid to eligible designers or pattern makers
- Maximum salary of $60,000 for a designer and $40,000 for a pattern maker
Evaluation & selection criteria
There are evaluation and selection criteria for this grant. The company must meet specific conditions and hold a valid eligibility certificate. The evaluation and selection criteria include:
- Having an establishment in Quebec and operating a business with a gross revenue of at least $150,000 per year
- Holding an eligibility certificate related to a design activity issued by the Minister of Economy, Innovation, and Energy
How to apply
- Step 1: Determine eligibility
- Ensure the company has a qualifying establishment in Quebec with a minimum annual gross revenue of $150,000.
- Obtain an eligibility certificate from the Minister of Economy, Innovation, and Energy for a design activity.
- Verify that the company is not exempt from tax and is not a Crown corporation or a wholly owned subsidiary of one.
- Step 2: Assess salary eligibility
- Determine the maximum eligible salary per year: $60,000 for a designer and $40,000 for a patternmaker holding the necessary qualification certificate.
- Step 3: Calculation of tax credit
- For companies with a total asset value:
- ≤ $50 million, the tax credit rate is 24%
- ≥ $75 million, the tax credit rate is 12%
- Between $50 million and $75 million, the tax credit rate varies from 12% to 24%.
- For companies with a total asset value:
Design Internal Activity Tax Credit
A company eligible for the Design Internal Activity Tax Credit can claim a credit for eligible salaries paid to qualified designers or patternmakers for engaging in design activities. The credit rates vary based on the total assets of the company, ranging from 12% to 24%. To qualify, the company must operate in Quebec, have a minimum annual gross revenue of $150,000, and hold a design activity eligibility certificate issued by the Minister of Economy, Innovation, and Energy.
Companies exempt from taxes or Crown corporations and their subsidiaries are not eligible for this credit. Eligible salaries must be paid to qualified personnel with design qualifications who work at the Quebec establishment.
