A corporation that carries out industrial design activities can receive a refundable tax credit for the following expenditures incurred during a taxation year:

• salaries and wages incurred internally up to $60,000 per eligible designer and to $40,000;
• 65% of the fees of a designer consultant.

Eligible Corporations

This tax measure is available to any manufacturing corporation that:

• is established in Quebec where it operates an eligible business;
• have a gross revenue for the taxation year of at least $150,000;
• generates economic spinoffs in Quebec;
• is not a Crown corporation or a wholly-controlled subsidiary of such a corporation;
• holds an eligibility certificate issued by the Ministère du Développement économique, de l’Innovation et de l’Exportation.

Nature of the assistance

This tax credit allows a corporation to reduce its income tax. When it exceeds the tax payable, the corporation gets, under certain conditions, a refund from Revenu Québec.

The amount of tax credit is determined and claimed at the end of the taxation year when a corporation produces its income tax return.

Determining the tax credit

The tax credit is determined based on the type of eligibility certificate related to a design activity delivered to the corporation, or in other word based on if the corporation carries out its design activities in-house or externally.