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Tax credit for external design in Québec
Tax credit for a design activity carried out by an outside consultant
Last Update: March 3, 2026
Funding available
Up to 24% of project cost
Timeline
- Open continuously
Location
Quebec, Canada
Overview
Tax credit of 12% to 24% on the cost of external design activities (salary costs up to $60,000 for a designer and $40,000 for a pattern maker) or 65% of contract fees admissible on the cost of external design activities by a consultant.
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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
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Manufacturing
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 under a contract with an eligible consultant.
- Pattern-making work carried out under the contract.
Documents Needed
- Form CO-1029.8.36.5
- Copy of the eligibility certificate issued by the Minister
- Copy of each external consultant’s qualification certificate
- Organizational chart of associated and related entities
- Copies of invoices and proof of payment
Eligibility
Who is eligible?
- Corporations with an establishment in Quebec.
- Corporations operating a business in Quebec with gross annual income of at least $150,000.
- Corporations that hold an eligibility certificate for an external design activity.
- Partnership members eligible for the credit on their share of partnership expenses.
Who is not eligible
- Tax-exempt corporations.
- Crown corporations and wholly controlled subsidiaries of Crown corporations.
Eligible expenses
- Contract costs attributable to salaries paid by the external consultant to an eligible designer or pattern maker, within the annual salary limits.
- 65% of contract costs for eligible design or pattern-making work performed in Quebec by a non-arm’s length consultant.
Ineligible Costs and Activities
- Any expense related to industrial design for an year or fiscal period beginning after March 25, 2025.
Eligible geographic areas
- Quebec
Processing and Agreement
- Applications are accepted and processed once the required form and attestations are received.
- If attestations are submitted after the filing deadline, the claim is processed only after Revenu Québec receives them.
- Submissions can be made electronically through authorized software or by mail.
Additional information
- The maximum eligible annual salary is $60,000 for a designer and $40,000 for a pattern maker.
- Documents may be submitted online using authorized software.
- Postal submissions must include the company name, identification numbers, and fiscal year-end date.
- Documents should preferably be sent together in one package.
Frequently Asked Questions about the Tax credit for external design in Québec Program
Here are answers to the most common questions about the Tax credit for external design in Québec. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Tax credit for external design in Québec?
Tax credit of 12% to 24% on the cost of external design activities (salary costs up to $60,000 for a designer and $40,000 for a pattern maker) or 65% of contract fees admissible on the cost of external design activities by a consultant.
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 with a gross income of at least $150,000 per year.
The corporation must hold an eligibility certificate for an external design activity issued by the Minister of Economy, Innovation and Energy.
The corporation cannot be tax-exempt or a Crown corporation, nor a wholly controlled subsidiary of such a corporation.
What expenses are eligible under Tax credit for external design in Québec?
External design activities under a contract with an eligible consultant.
Pattern-making work carried out under the contract.
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
Who are the financial supporters of the Tax credit for external design in Québec?
Tax credit for external design in Québec is funded by Revenu Québec, Government of Québec