Tax Credit for Pre-Competitive Private Partnership Research

• RD-1029.8.16.1 form
• Copy of the admissibility certificate
• RD-222 form
• RD-1029.7.8 form, if applicable
• Copy of the partnership agreement and related supporting documents

Who is eligible?

• Corporations operating a business in Canada
• Companies involved in private partnership R&D projects in Quebec

Who is not eligible

• Tax-exempt corporations
• Crown corporations and wholly controlled subsidiaries
• Corporations controlled by a prescribed research entity, or related to such a corporation

Eligible expenses

• Eligible R&D expenses incurred under the private partnership agreement
• Subcontracted R&D costs paid to an unrelated person or partnership, up to the applicable limit

Ineligible Costs and Activities

• R&D expenses that are not paid when the credit is claimed
• Expenses beyond the enhanced-rate $3 million cap
• Subcontracted R&D amounts above the 80% calculation limit

Eligible geographic areas

• Quebec
• Canada

• The claim is reviewed after the tax return and required documents are submitted.
• The request is processed once the admissibility certificate copy is received.
• Missing documents may still be sent later, within the stated deadline.
• The claim is accepted only if the prescribed forms are submitted on time and the certificate has been validly obtained.

• The credit applies to eligible R&D expenses paid at the time of the claim.
• Associated companies must agree on the allocation of the $3 million enhanced-rate limit.
• If the claim cannot be attached to the tax return, required documents must be sent within the stated deadline.
• Applications may be submitted electronically through authorized software.