Tax credit for technological adaptation services

The Tax Credit for Technological Adaptation Services facilitates financial support through a tax credit system designed to encourage technological innovation. Key financial terms focus on reimbursing eligible expenses incurred under specific conditions.

• The tax credit rate is 40% of eligible expenses incurred, payable at the time of the application.
• Eligible expenses include 80% of fees related to an eligible liaison and transfer service provided in Quebec by an eligible CCTT or CLT.
• Participation fees for training and information activities carried out in Quebec related to an eligible service are also included.
• Only ad hoc training participation fees, offered outside regular training programs, are considered eligible.

Eligibility for this tax credit depends on specific criteria related to the company's status and contractual arrangements.

• The company must have an establishment in Quebec and operate an eligible business there during its taxation year.
• The company must have a contract with an eligible College Technology Transfer Centre (CCTT) or an eligible Liaison and Transfer Centre (CLT).
• The company must not be tax-exempt, a Crown corporation, or a subsidiary wholly controlled by such a corporation.
• If the company is a member of a qualifying partnership, it can claim the credit for its share of eligible expenses incurred by the partnership.

Who is eligible?

Eligible businesses are those operating in Québec, with an establishment in the province, and engage in eligible commercial activities. Companies must be involved with an eligible college technology transfer centre (CCTT) or liaison and transfer centre (CLT) through a contract to obtain qualified services for transfer and adaptation activities.

Who is not eligible

The tax credit for technological adaptation services excludes certain companies based on their tax status and ownership. The restrictions aim to focus the support on businesses operational within specific eligibility criteria.

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

Eligible expenses

This Canadian tax credit incentivizes companies to engage in projects that enhance technological adaptation through eligible services. The focus is on nurturing collaborations with authorized technological transfer centers to advance business operations.

• Engaging in technology transfer projects with a college center for technology transfer (CCTT) or a liaison and transfer center (CLT) in Quebec.
• Participation in liaison services to implement and adapt new technologies.
• Involvement in specific, non-regular training and informational activities related to the adaptation of technology in Quebec.

Eligible geographic areas

This tax credit is targeted at companies with operational establishments within a specific province in Canada, reflecting its regional focus. Eligibility for this grant is determined by the location of the company's operations within this area.

• Companies with operating establishments located in Quebec, Canada.

- Companies must be eligible and have an establishment in Quebec. - Companies must operate an eligible business in Quebec. - Companies must have a contract with an eligible CCTT or CLT. - Companies must incur eligible expenses within the scope of the contract. - Expenses must be paid at the time of the tax credit application. - Certain types of companies are not eligible for the tax credit. - Expenses must be related to eligible services provided by the CCTT or CLT. - Expenses may include fees for eligible services, training, and information activities offered in Quebec. - Participation in ad-hoc training activities may be considered eligible. - Expenses must not be eligible for other specific research and experimental development tax credits.

Additional insights about the tax credit eligibility:

• This credit is specifically for services related to technology adaptation, indicating a focus on innovation and modernization within the business operations.
• The tax credit aims to encourage collaboration between businesses and educational institutions, promoting technology transfer and practical applications of academic research.
• Ensuring that all expenses are thoroughly documented and verified as paid before submitting the application is crucial to claim the tax credit successfully.
• Businesses should ensure they do not double-dip into multiple credits intended for similar purposes, as overlap with other specific research credits can disqualify expenses.