Tax credit for shipbuilding
Last Update: July 22, 2025
QC, Canada
Tax incentive supporting shipbuilding and naval innovation in Quebec
Tax credit for shipbuilding at a glance
Eligible Funding
- Up to 38% of project cost
Timeline
- Unspecified
Financing Type
Tax Credits
Eligible Industries
- Manufacturing
- Transportation and warehousing
Grant Providers
- Revenu Québec
Program status
Open
Overview of the Tax credit for shipbuilding program
The Tax Credit for Shipbuilding provides financial support to Quebec companies for the construction or major transformation of ships, covering eligible costs such as salaries and design expenses, pending approval by the Ministry of Economy, Innovation and Energy. There is no stated maximum funding amount, and eligible activities include ship construction, prototyping, and significant vessel modifications.
Eligible projects & activities
- Construction of new ships meeting the required specifications.
- Transformation projects involving major technical and structural upgrades to existing vessels.
- Development of prototype ships as the first in a potential production series.
Examples of admissible projects:
$ 1,180,000
Transforming a research vessel for Arctic navigation capability
$ 1,700,000
Major retrofitting of a tugboat fleet with emission controls
$ 4,650,000
Building a hybrid-electric passenger ferry for regional transport
$ 540,000
Prototype construction of a lightweight aluminum cargo barge
$ 2,090,000
Full construction of a double-hull oil recovery vessel
$ 1,000,000
Developing a prototype autonomous hydrographic survey vessel
Eligibility criteria of the Tax credit for shipbuilding program
- The applicant must be a corporation with an establishment in Quebec operating a shipbuilding business.
- The company must hold a certificate of eligibility issued by the Minister of Economy, Innovation and Energy for each eligible ship and contract.
- The shipyard must be located in Quebec and have direct access to a navigable waterway, workshops for ship construction under permanent shelter, and the necessary infrastructure to launch the vessel.
- The company must have demonstrated capacity by having constructed or reconstructed, within the past five years, a ship or barge of more than 50 gross tonnage for an unrelated client.
- The project must involve the construction of a ship of at least 50 gross tonnage, intended for transporting goods or people, or providing specialized services, or involve major technical transformations.
Who is eligible?
- Companies operating a shipbuilding business with an establishment in Quebec
Who is not eligible
- Companies that are exempt from paying income tax for the fiscal year in question.
- Crown corporations or wholly owned subsidiaries of such corporations.
Eligible expenses
- Cost of plans and specifications for the construction of the eligible vessel (including the portion carried out in Quebec if the work is not fully performed by the applicant company).
- Salaries related to the preparation of plans and specifications, as long as these are assignable to a Quebec establishment.
- Salaries of employees directly involved in the construction or transformation of the vessel.
- Labour costs attributable to the direct construction or transformation work on the vessel.
Eligible geographic areas
- Quebec
How to apply to the Tax credit for shipbuilding program
1
Verify company and project eligibility
- Ensure your company has an establishment in Quebec and operates a shipbuilding business
- Verify eligibility criteria for your shipyard and the vessel(s)
- Confirm that your company is not tax-exempt and is not a Crown corporation or a wholly-controlled subsidiary
2
Prepare eligibility certificate documentation
- Gather preliminary documentation such as a project summary, gross tonnage evaluation, and preliminary plans and specifications
- Prepare information required for the eligibility certificate request
3
Apply for certificate of eligibility
- Submit the completed certificate of eligibility application form with required documentation to the Ministry of Economy, Innovation and Energy
- Optionally request a pre-eligibility assessment if uncertain about the project’s qualification
4
Request vessel certificate upon contract signing
- Once a contract is signed with the ship owner, compile and submit a request for a ship certificate, including the signed contract, specified plans and specifications, and cost justification if necessary
5
Prepare tax credit application and documents
- Complete the required tax credit application form (CO-1029.8.36.55)
- Attach a copy of the eligibility certificate issued for each qualifying vessel
- Prepare and retain supporting documents for verification if requested by the tax authorities
6
Submit application with tax return
- Submit the completed form and all required prescribed documents with the corporate income tax return
- If unable to include all documents, submit outstanding documents by the deadline: either within 12 months after the tax return deadline or within 3 months of receiving the required certificate
- Transmit via approved software or by post, ensuring all documents are identified with company information
Additional information
- The eligibility certificate is valid for up to three years from the date of application submission.
- Projects must commence no later than two years after the issuance of the eligibility certificate.
- Any request to renew the eligibility certificate may require revisions and updated documentation from the original submission.
- There are no application or processing fees for the eligibility certificate or related requests.
Contact Revenu Québec
certificat-maritime@economie.gouv.qc.ca
Apply to this program
Grant and FundingOpen
Quebec, Canada
Financial assistance for the demonstration of new technologies in Quebec
Researchers And FacilitiesExpert AdviceOpen
Quebec, Canada
Research centres and technical experts across Quebec
Tax CreditsOpen
Quebec, Canada
Provides a tax credit for eligible ship conversion projects
Grant and FundingOpen
Quebec, Canada
Investment support for feasibility studies in Quebec
Grant and FundingClosed
Quebec, Canada
Enhancing productivity through food industry automation assistance
Grant and FundingOpen
Quebec, Canada
Supports Canadian AI startups and SMEs focused on value chains
Grant and FundingClosed
Quebec, Canada
SEB supports Quebec agri-food market expansion outside Quebec
Grant and FundingOpen
Quebec, Canada
Funding to optimize the operation of building mechanical systems
Grant and FundingSuspended
Quebec, Canada
Market Access Support for Quebec Food Processors
