How much funding can be received?

Funds up to 38% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Tax credit for shipbuilding?

Tax credit for shipbuilding is funded by Revenu Québec

What are Tax credit for shipbuilding's eligibility criterias?

Must be a corporation with an establishment in Quebec engaged in shipbuilding. Must hold a certificate of eligibility from the Minister of Economy, Innovation and Energy for each eligible ship and contract. Cannot be a tax-exempt corporation or a Crown corporation (or its wholly controlled subsidiary).

Tax credit for shipbuilding

Last Update: April 24, 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

Continuous Intakes

Financing Type

Tax Credits

Eligible Industries

Manufacturing
Transportation and warehousing

Grant Providers

Revenu Québec

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

$ 4,650,000

Building a hybrid-electric passenger ferry for regional transport

$ 1,700,000

Major retrofitting of a tugboat fleet with emission controls

$ 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

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

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

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

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

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

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.