
Tax credit for external design in Québec
grant_single|update April 25, 2025
QC, Canada
Tax credit for a design activity carried out by an outside consultant
grant_single_labels_website|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDate November 14, 2019
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Manufacturing
grant_single|grantors
- Revenu Québec
- Gouvernement du Québec
grant_single|status
grant_card_status|open
grant_single_labels_website|preview
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.
grant_single_labels_website|terms_and_conditions
- The tax credit rate varies according to the total assets of the company: 24% if the total assets, including those of associated companies, are equal to or less than 50 million dollars;
- 12% if the total assets are equal to or greater than 75 million dollars;
- Progressive rate between 12% and 24% for total assets between 50 and 75 million dollars.
grant_single_labels_website|projects
- Design activities carried out externally under a contract with an eligible external consultant.
- Pattern drawing activities (activité de dessin de patron) performed under a contract with an eligible external consultant.
grant_single|admissibleProjectsExample
$ 45,600
Developing eco-friendly packaging designs for new product line
$ 38,700
Improving urban mobility through innovative bicycle design
$ 27,300
Developing inclusive user interface designs for a new app
grant_single_labels_website|admissibility
- The company must operate a business establishment in Quebec.
- The company must have a gross annual income of at least $150,000.
- The company must obtain a certificate of eligibility from the Minister of Economy, Innovation and Energy for an external design activity, for the taxation year.
- The eligible design activity must be carried out under a contract with an eligible external consultant.
grant_eligibility_criteria|who_can_apply
- Corporations operating a business in Quebec with a gross annual income of at least $150,000
- Corporations with an establishment in Quebec
- Corporations that hold an eligibility certificate for an external design activity issued by the Minister of Economy, Innovation and Energy
- Corporations that are not tax-exempt or Crown corporations (or wholly controlled subsidiaries of Crown corporations)
grant_eligibility_criteria|who_cannot_apply
- Tax-exempt corporations.
- Crown corporations or wholly controlled subsidiaries of such corporations.
grant_eligibility_criteria|eligible_expenses
- If the applicant company has a non-arm’s length relationship with the eligible external consultant: portion of the contract cost attributable to the salaries paid by the external consultant to an eligible designer (up to $60,000 per year) or to an eligible pattern maker (up to $40,000 per year), both holding a qualification certificate and working at a Quebec establishment.
- If the applicant company has an arm’s length relationship with the eligible external consultant: 65% of the contract cost attributable to eligible design or pattern making activities performed under the contract by the external consultant in Quebec, for the company’s benefit.
grant_eligibility_criteria|zone
This grant is available to companies that have a physical presence and conduct business in Quebec. The eligibility is restricted to those operating within this specific region.
- Companies with an establishment in Quebec.
grant_single_labels_website|apply
1
Obtain the necessary certificates
- Request and obtain a certificate of eligibility for external design activities from the Minister of Economy, Innovation, and Energy.
- Obtain the qualification certificate for each eligible external consultant involved.
2
Preparation of the required documents
- Fill out the Tax Credit form for carrying out an external design activity (CO-1029.8.36.5).
- Attach a copy of the eligibility certificate obtained.
- Attach copies of the qualification certificates of eligible external consultants.
3
Gather the required documents
- Prepare an organizational chart of the associated companies and related individuals or partnerships.
- Collect copies of invoices from eligible external consultants and proof of payment along with their NEQ or NAS.
- Establish a list of eligible external consultants.
- Establish a list of employees from each eligible external consultant who participated in the project.
- Obtain a copy of the contract or agreement with each eligible external consultant.
- Provide proof of the inclusion of the tax credit in the company's income calculation for the tax year, if applicable.
4
Registration of information in the declaration
Enter the name of the tax credit, its code (10), and its amount in the appropriate lines of the tax return.
5
Transmission of documents
- Attach all copies of the CO-1029.8.36.5 form and the certificates to the tax return.
- Send the documents by Internet via authorized software or by mail.
- Ensure that the documents sent by mail mention the company name, its identification and file numbers, as well as the financial year-end date.
- If sending by mail, prefer a single shipment to expedite processing.
grant_single_labels_website|otherInfo
Here are additional relevant details for this grant:
- The maximum annual salary considered for eligible designers is $60,000, and for patternmakers, it is $40,000.
- Documents can be submitted via authorized internet software, which negates the need for paper submissions.
- On mailed documents, include the company name, identification numbers, and fiscal year-end date.
- All documents should ideally be submitted in one package to expedite processing.
- If necessary attestation documents are delayed, applications will be processed only upon receipt of these attestations, even if they arrive past the deadline.
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