Tax holiday for a new business created to commercialize intellectual property

• The applicant must be a company established in Canada between March 19, 2009 and April 1, 2014, dedicated to commercializing intellectual property derived from research conducted in Quebec's public sector.
• The company must begin operating its commercialization business within twelve months of incorporation.
• The company’s income must come almost entirely from one or more eligible commercialization businesses it actively operates.
• The intellectual property being commercialized must have been developed in an eligible Quebec public institute and meet strict ownership and disclosure requirements.
• The company must not result from a merger or acquisition, nor have previously operated all or part of the business from another entity, except under specific conditions.

Who is eligible?

• Companies incorporated in Canada between March 19, 2009, and April 1, 2014, dedicated to the commercialization of intellectual property derived from research conducted within the Quebec public sector
• Companies engaged in the manufacturing and sale of goods whose value is primarily derived from eligible intellectual property
• Companies engaged in the manufacturing and sale of goods where an essential element is eligible intellectual property
• Companies involved in licensing eligible computer software intellectual property

Who is not eligible

• Companies formed as a result of a merger or unification of multiple companies.
• Businesses that have operated, in full or in part, a commercial enterprise previously run by another entity for more than 90 days.
• Companies that have sold almost all the assets used in their eligible commercialization business.
• Companies that have been beneficiaries of a trust, except for a mutual fund trust.
• Businesses that have been part of a joint venture or partnership, unless all members are recognized as eligible institutes.

Eligible geographic areas

• Companies constituted in Canada and commercializing intellectual property derived from public research conducted in Quebec.

• The attestation of eligibility is valid for a maximum of three years, with the initial period starting from the date the company begins to operate the eligible commercialization business.
• Renewals of the eligibility attestation must be requested via email, and the same eligibility criteria apply for renewals.
• The application process is free of charge.
• All application documents must be submitted together in a single dispatch.