Open
Source verified August 11, 2026
Tax credit for external design in Québec
Tax credit for external fashion 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
- Documents to keep available on request, including an organizational chart, consultant invoices and proof of payment, lists of consultants and employees who performed the work, and each contract or agreement with an eligible external consultant
- For the activity attestation, supporting records may include drawings and technical sheets, sketch banks and ideation sketches, 3D mock-ups or models, patterns, product catalogues, and other documents showing that the design activities were carried out
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 are ineligible if incurred for a taxation year or fiscal period beginning after March 25, 2025.
- Sales, marketing, public relations, website and social media management, photography, promotional materials, advertising, store visual plans, and catalogues are ineligible.
- Production, postproduction, administration, and purchasing activities are ineligible.
- Pattern placement, care or size or content labels, folding-method documents, and production start-up management are ineligible.
- Modifying or adapting an existing graphic or pattern is ineligible.
Eligible geographic areas
- Quebec
How to apply
- Review the explanatory document that matches your situation.
- Ensure the required prior attestations have been obtained, if applicable.
- Prepare the required documents for the attestation you are requesting.
- Submit the attestation request online through clicSÉQUR – Entreprises.
- 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 return, or send them by the later of 12 months after the filing deadline or 3 months after the attestation is issued, and submit the return and documents online or by mail.
Processing and Agreement
- No attestation application will be examined until the required fees have been paid.
- During the review, the Minister may request additional information or documents and may conduct telephone interviews or business visits.
- The attestation is issued if all issuance conditions are met, and the issued document may differ from what was requested if the facts and applicable parameters justify it.
- The decision is communicated through clicSÉQUR – Entreprises, and if the request is rejected or the issued document differs from what was requested, the applicant receives written reasons and review rights.
- The tax credit claim is accepted and processed if the prescribed form is submitted within the required deadline and all necessary attestations have been obtained, but it is processed only when the attestation copy is received.
Additional information
- The design activity attestation is issued for a specific taxation year or fiscal period and must be renewed each year.
- Designer, pattern maker, and consultant attestations do not require annual renewal.
- An attestation may be modified or revoked if information or documents brought to the Minister’s attention justify it.
- Attestation holders must report any change that could lead to a modification or revocation of the attestation.
Contacts
Availability timeline
2026
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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.
What is the deadline to apply?
The program is accepting continuous intake
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 or by phone at 418-691-5698, poste 4071.
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.