Open
Last Update: June 10, 2026
Funding available
$ 3,000,000
Timeline
- Open continuously
Location
Quebec, Canada
Overview
Get a tax credit between 14 and 30% of labour costs for your scientific research and experimental development expenditures.
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Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Develop a new product or service
- Conduct research and development activities
- Renovate or expand facilities
Eligible Funding
- Maximum amount : 3,000,000 $
- Up to 30% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Professional, scientific and technical services
Location
- Quebec
Legal structures
- For-profit business
Annual revenue
- $ 75,000,000 maximum revenue
Organisation size
- All organization sizes
Audience
- All groups
Next Steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Conducting scientific research and experimental development (R&D) projects in Quebec.
- Collaborative R&D activities carried out on behalf of the company.
Eligibility
Who is eligible?
- Corporations operating a business in Canada
- Companies conducting or commissioning scientific research and experimental development (R&D) in Quebec
Who is not eligible
- Companies that are exempt from tax.
- Crown corporations or subsidiaries wholly controlled by a Crown corporation.
- Companies controlled, directly or indirectly, by a prescribed research entity, or that were controlled by such an entity within the past 24 months, or companies related to such controlled companies.
Eligible expenses
- Salaries paid to employees of the company for R&D work performed in Quebec during the year.
- Portion of payments made to subcontractors with whom the company has a dependent relationship, corresponding to salaries paid to their employees for R&D services performed in Quebec.
- Portion of payments made to subcontractors with whom the company has a dependent relationship, further subcontracted to other dependent subcontractors, corresponding to salaries paid for R&D work performed in Quebec.
- Half of payments made to independent (non-dependent) subcontractors for R&D work performed by their employees in Quebec.
- Half of the portion of payments made to dependent subcontractors who then subcontract to independent parties, corresponding to R&D work carried out for the company in Quebec.
Eligible geographic areas
- Companies conducting scientific research and experimental development (R&D) in Quebec.
How to apply
1
Preparation of documents
- Fill out the Tax Credit form related to salaries – R&D (RD-1029.7).
- Fill out the Deduction of Expenses Incurred for Scientific Research and Experimental Development form (RD-222).
- If necessary, complete the Agreement on the Expense Limit between Associated Corporations form (RD-1029.7.8).
- Prepare a document detailing the expenses incurred.
- Gather the supporting documents for the expenses.
- Develop a list of employees with their name, social insurance number, hourly wage, and time dedicated to R&D activities.
- Establish a list of contractors with their name, address, and amount paid.
- Collect invoices and proof of payment from contractors.
- Prepare a reconciliation of R&D expenses.
- Develop organizational charts for the company and associated companies.
- Include a copy of the notice of assessment issued by the Canada Revenue Agency for the previous year.
- Prepare a document explaining the discrepancies between certain tax amounts if applicable.
- Include the federal form T661 for the previous and current year.
- Provide the roles and responsibilities of employees who received R&D support salaries.
- Include time sheets and calculation methods for the allocation of support salaries.
- Provide proof of the inclusion of the tax credit amount in the company's income, if applicable.
2
Entry of information in the tax return
Enter the name of the tax credit and its code (02) as well as its amount in lines 440p to 440y of the income tax return.
3
Transmission of the declaration and documents
- Attach forms RD-1029.7, RD-222, and RD-1029.7.8, if applicable, to the tax return.
- Include all required documents and submit them simultaneously to expedite processing.
- Send the return and documents via the Internet if the functionalities of the software used allow it; otherwise, send them by mail.
- Ensure to include the company's name, its identification and file numbers, as well as the fiscal year's closing date on each document sent by mail.
Additional information
- Supporting documents must be submitted in a single package for quicker processing.
- Paper submissions require clear identification of the company, including name, identification and file numbers, and fiscal year-end date on each document.
- If documents cannot be attached to the tax return, they must be sent within 12 months after the deadline for filing the return.
- Internet submission via authorized software is possible, in which case paper documents are not required.
Frequently Asked Questions about the Tax credit for R&D labour costs Program
What is the Tax credit for R&D labour costs?
Get a tax credit between 14 and 30% of labour costs for your scientific research and experimental development expenditures.
How much funding can be received?
Tax credit for R&D labour costs Funds up to 30% of admissible expenses, capped at $3,000,000 per project.
Who is eligible for the Tax credit for R&D labour costs program?
To be eligible for the Tax credit for R&D labour costs program, you must:
Must operate a business in Canada
Must carry out or contract R&D activities in Quebec
Must not be a tax-exempt, Crown, or controlled research entity
What expenses are eligible under Tax credit for R&D labour costs?
Conducting scientific research and experimental development (R&D) projects in Quebec.
Collaborative R&D activities carried out on behalf of the company.
Where is the Tax credit for R&D labour costs available?
The Tax credit for R&D labour costs program is available the province of Quebec.
Is the Tax credit for R&D labour costs a grant, loan, or tax credit?
Tax credit for R&D labour costs is a Tax Credits
Who are the financial supporters of the Tax credit for R&D labour costs?
Tax credit for R&D labour costs is funded by Revenu Québec