Tax credit for pyrolytic oil production in Québec

• The company must have an establishment in Quebec and operate an eligible pyrolytic oil production business in the province during its taxation year.
• The company must not be a tax-exempt corporation for the year.
• The company must not be a Crown corporation or a wholly controlled subsidiary of such a corporation.
• For a taxation year ending after March 31, 2023, the company must obtain an eligibility certificate from the Minister of Economy, Innovation and Energy regarding the eligible pyrolytic oil production.

Who is eligible?

• Companies with an establishment in Quebec producing eligible pyrolytic oil

Who is not eligible

• Companies that are exempt from tax for the year.
• Crown corporations or wholly-owned subsidiaries of such corporations.

Eligible geographic areas

• Companies with an establishment in Quebec.

• Step 1: Include Tax Credit Information in Corporate Tax ReturnEnter the name of the tax credit, its code (106), and the eligible amount on one of lines 440p to 440y in your corporate tax return.
• Step 2: Gather Required DocumentsComplete the form "Crédit d'impôt pour production d'huile pyrolytique au Québec" (CO-1029.8.36.HP).
• Prepare a report for each month of the fiscal year detailing:Eligible pyrolytic oil production done in Québec
• Name of the acquiring individual or partnership
• Number of litres acquired
• Date of sale
• Date and address for possession
• Complete the agreement form (CO-1029.8.36.HQ), if applicable.
• If your fiscal year ends after March 31, 2023, include a copy of any valid eligibility attestation issued by the Minister of Economy, Innovation and Energy for the year or a previous year, for each type of eligible pyrolytic oil produced and included in the eligible monthly production.
• Step 3: Submit Documents with Tax ReturnAttach all required documents to your corporate tax return when submitting your application.
• If filing electronically via authorized software, you do not need to provide paper documents.
• If filing by mail, clearly indicate on each document the name of the company, identification and account numbers, and fiscal year-end date.
• For fiscal years ending after March 31, 2023, ensure any required eligibility attestations are included. If you are unable to attach them at submission, send them as soon as possible, but no later than either:Twelve months after the corporate tax filing deadline for the fiscal year
• Three months after the date the eligibility attestation is issued (whichever is later)
• Step 4: Ensure Complete and Timely SubmissionTransmit all documents in a single submission to expedite processing.
• The application will be accepted and processed only when all prescribed documents and required attestations (if needed) are received within the deadlines. Processing will commence once all necessary attestations are provided.

• All prescribed documents must include the company's name, identification numbers, file number, and fiscal year-end date if submitted by mail.
• If documents cannot be submitted with the tax return, they must be sent within the specified deadlines to avoid processing delays.
• Electronic transmission of the application and related documents is permitted using authorized software, in which case paper copies are not required.
• It is recommended to submit all required documents in a single package to ensure swift processing of the application.