
Tax Credit for Pre-Competitive Private Partnership Research
grant_single|update January 24, 2025
QC, Canada
Tax credit for pre-competitive partnership research in Quebec
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|openingDate November 14, 2019
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Professional, scientific and technical services
grant_single|grantors
- Revenu Québec
- Gouvernement du Québec
- Ministère de l'économie, de l'innovation et de l'énergie du Québec (MEIE)
grant_single|status
grant_card_status|open
grant_single_labels|preview
Refundable tax credit of up to 30% for R&D work conducted in partnership with another private company.
grant_single_labels|terms_and_conditions
The Tax Credit for Pre-Competitive Private Partnership Research offers targeted financing options to incentivize research and development activities conducted through private partnerships in Quebec.
- A base tax credit rate of 14% is applicable to eligible R&D expenditures.
- The tax credit rate can be increased up to 30% for companies that are not controlled by non-residents and whose total assets in the preceding fiscal year, including associated companies, do not exceed $50 million.
- For companies with total assets between $50 million and $75 million, the enhanced rate of 30% is reduced linearly.
- The enhanced credit rate applies to a maximum of $3 million in expenditures, regardless of multiple partnership agreements.
- Eligible R&D expenses subcontracted to non-affiliated persons or partnerships are capped at 80% of the incurred expenditures under the research contract.
grant_single_labels|projects
The Tax Credit for Pre-Competitive Private Partnership Research is designed to support pre-competitive scientific research and development projects carried out through private partnerships in Quebec. The eligible activities primarily involve research and development efforts that contribute to innovative advancements.
- Conducting pre-competitive scientific research and development projects in private partnership arrangements.
- Partnering with external parties not related by dependence for subcontracted R&D activities.
- Collaborating with non-public entities to explore innovative research opportunities.
grant_single|admissibleProjectsExample
$ 300,000
Exploring genetic modification for disease resistance in plants with a biotech firm
$ 285,000
Creating advanced agricultural drones with a startup partner
$ 405,000
Developing a new AI algorithm for financial forecasting in collaboration with a tech company
$ 345,000
Innovating eco-friendly packaging solutions with a partner in the polymer industry
$ 300,000
Developing a new biofuel technology, collaborating with a chemical engineering firm
$ 225,000
Developing medical imaging software with a healthcare technology company
grant_single_labels|admissibility
The eligibility for this tax credit is defined by specific criteria that the applying company must meet within the specified taxation year.
- The company must operate a business in Canada and have entered into a private partnership agreement to conduct or have conducted on its behalf scientific research and experimental development (SR&ED) work in Quebec.
- The company must obtain an eligibility certification from the Minister of Economy, Innovation and Energy.
- The company must not be affiliated with any public partner and must have no dependency relationship with at least one other partner, apart from the public partner, during the taxation year.
- The company cannot be tax-exempt, a Crown corporation, or a subsidiary entirely controlled by such a corporation.
- The company must not be controlled, directly or indirectly, by a prescribed research entity or have been controlled within the 24 months preceding the date a contract related to SR&ED is concluded, nor be associated with such a controlled company.
- If the company is a member of a partnership, it may apply for the credit for its share of the SR&ED expenses incurred by the partnership.
- If the company is associated with other eligible companies in the taxation year, they must agree on the distribution of the $3 million expenditure limit applicable to the enhanced credit rate.
grant_eligibility_criteria|who_can_apply
Eligible applicants must be entities that operate a business in Canada and have entered a private partnership agreement to conduct scientific research and experimental development (R&D) in Quebec. Companies must have an eligibility certificate issued by the Minister of Economy, Innovation, and Energy and meet specific criteria regarding partnerships and company control.
- Company must carry out an R&D project within a private partnership as part of a precompetitive research agreement.
- Applicant needs an eligibility certificate from the Minister of Economy, Innovation, and Energy.
- The company must not be affiliated with public partners and must have no dependency relationship with at least one non-public partner during the tax year.
- Companies must not be tax-exempt, a Crown corporation, or controlled by a prescribed research body.
- Affiliated companies need to agree on expenditure limit allocation for the enhanced 30% tax credit rate.
- Members of a partnership can claim the credit for their share of eligible R&D expenditures.
grant_eligibility_criteria|who_cannot_apply
This grant excludes certain types of companies primarily due to their tax-exempt status or control by certain entities. These restrictions are in place to direct support towards specific operational and ownership structures.
- Companies that are tax-exempt.
- Crown corporations or subsidiaries fully controlled by them.
- Companies controlled, directly or indirectly, by a prescribed research entity or associated with such entities in the past 24 months.
grant_eligibility_criteria|eligible_expenses
Eligible projects for this grant primarily involve scientific research and experimental development activities undertaken through private partnerships. These activities aim to advance pre-competitive research within the province of Quebec.
- Conducting scientific research and development (R&D) through partnerships with private entities.
- Subcontracting R&D work to independent entities within Quebec.
- Collaborating on pre-competitive research projects in various scientific fields.
- Engaging in scientific research projects that are not influenced or controlled by public partners.
grant_eligibility_criteria|zone
This grant is targeted at companies conducting research activities in specific areas within Canada, with a focus on those operating in Quebec.
- Organizations conducting or commissioning research and development activities within Quebec.
grant_single_labels|apply
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grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- Expenses must be paid at the time of claiming the tax credit.
- If applicable, a copy of the RD-1029.7.8 form regarding the agreement among associated corporations must be submitted.
- The tax credit request will be processed once a valid eligibility certificate is received, even if submitted after the deadline.
- The application can be submitted online using authorized software, alleviating the need to send paper copies.
- If sending documents by mail, they should include the company name, identification numbers, and the financial year-end date.
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