How much funding can be received?

Funds up to 30% of admissible expenses, capped at $3000000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

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, Gouvernement du Québec

What are Tax credit for R&D labour costs's eligibility criterias?

The company must operate a business in Canada and conduct or have conducted R&D activities in Quebec on its behalf. The company cannot be tax-exempt, a Crown corporation, or a subsidiary controlled by a Crown corporation. The company should not be controlled, directly or indirectly, by a prescribed research entity, or have been controlled by such an entity within 24 months prior to concluding an R&D contract.

Tax credit for R&D labour costs

grant_single|update January 24, 2025

QC, Canada

Tax credit for R&D in Quebec

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grant_single|openingDate November 14, 2019

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Tax Credits

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Professional, scientific and technical services

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Revenu Québec
Gouvernement du Québec

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Get a tax credit between 14 and 30% of labour costs for your scientific research and experimental development expenditures.

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This grant is available for companies conducting R&D activities in the province of Quebec, Canada. Eligibility is based on location to enhance regional R&D contributions.

Companies operating in the province of Quebec, Canada.

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$ 120,000

Creation of eco-friendly materials via chemical research

$ 180,000

Developing advanced cybersecurity measures for financial institutions

$ 150,000

Development of AI algorithms for medical diagnosis improvements

$ 200,000

R&D in renewable energy technology enhancement

$ 140,000

Improvement of agricultural biotech processes for crop yield

$ 160,000

Innovative software solutions for smart home systems

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Eligibility for the CRÉDIT D'IMPÔT RELATIF AUX SALAIRES – R-D is determined by specific criteria relating to the company and its activities.

The company must operate a business in Canada.
The company must conduct or have conducted scientific research and experimental development (R-D) work on its behalf in Quebec.
The company must not be tax-exempt.
The company must not be a Crown corporation or a wholly-controlled subsidiary of such a corporation.
The company must not be controlled, directly or indirectly, by a prescribed research entity, nor should it have been within the 24 months preceding the conclusion of an R-D related contract, nor should it be related to such a controlled company.
If the company is a member of a partnership, it can claim the credit for its share of the salaries paid by the partnership.

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This grant is available to companies operating a business in Canada that conduct or have R&D work conducted on their behalf in Quebec. These companies must meet specific conditions, including financial thresholds and control requirements.

Corporations that operate a business in Canada.
Entities conducting or commissioning R&D work in Quebec.
Corporations not controlled by non-residents of Canada to qualify for the higher credit rate.
Companies with total assets under 75 million CAD for the preceding tax year to qualify for the higher credit rate.
Excludes corporations exempt from tax, Crown corporations, or subsidiaries fully controlled by such corporations.
Excludes corporations controlled by a prescribed research entity in the last 24 months.

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Certain companies are not eligible for the CRÉDIT D'IMPÔT RELATIF AUX SALAIRES – R-D due to their tax status and control structure. These restrictions focus on ensuring eligible entities contribute actively to R&D activities in Quebec.

Tax-exempt corporations.
Crown corporations or subsidiaries wholly controlled by a Crown corporation.
Companies controlled, directly or indirectly, by a prescribed research entity or those that were in the 24 months preceding an R&D contract.

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This grant supports research and development (R&D) activities across various fields, as long as the work is conducted in Quebec. Eligible projects must involve scientific research and experimental development initiatives, as well as related subcontracted work.

Scientific research and experimental development (SR&ED) conducted directly by the company within Quebec.
Contracted SR&ED work carried out by dependent subcontractors within Quebec, focusing on salaries of employees in Quebec-based establishments.
Subcontracted work by independent subcontractors within Quebec, partially funded by the company under R&D contracts.

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The eligible expenses for this grant include specific salaries and payments to subcontractors related to R&D work conducted in Quebec.

Salaries paid to employees working in a Quebec establishment for R&D activities conducted during the year.
Portion of the consideration paid under an R&D contract to a dependent subcontractor for R&D work performed on behalf of the company during the year, corresponding to salaries paid to the subcontractor's Quebec-based employees.
Portion of the consideration, paid under an R&D contract to a dependent subcontractor and subsequently paid to another dependent subcontractor, attributed to salaries of the latter's Quebec-based employees.
Half of the consideration paid under an R&D contract to an independent subcontractor for R&D work conducted on behalf of the company by the subcontractor's Quebec-based employees.
Half of the consideration paid under an R&D contract to a dependent subcontractor, and subsequently paid to an independent subcontractor, for R&D work conducted on behalf of the company by the latter's Quebec-based employees.

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Here are additional relevant details for this grant application:

The application must include proof of payment for all claimed salaries and subcontractor expenses at the time of application.
A reconciliation of R&D expenditures is required to verify the amount submitted for the tax credit.
Consideration must be given to reducible expenses, which may diminish the total eligible amount claimed under the tax credit.
If companies are associated, they must agree on how to distribute the $3 million expense limit eligible for the increased tax credit rate and submit a "Schedule of Expense Limit Allocation among Associated Corporations (RD-1029.7.8)."
If documents cannot be submitted with the tax return, they should be provided within 12 months of the tax return’s filing deadline.
The process is streamlined if documents are submitted online using authorized software, negating the need for physical document submission.