25 March 2025 – 2025-2026 Québec budget: Tax highlights
Introduction of a new tax assistance scheme for scientific research and experimental development activities
Businesses in Canada that carry out R&D activities in Québec can currently benefit from four refundable tax credits: the tax credit for salaries (R&D), the tax credit for university research or research carried out by a public research centre or a research consortium, the tax credit for private partnership pre-competitive research and the tax credit for an eligible research consortium. The rate of these refundable tax credits is 14%, but it can be up to 30% in the case of a qualifying corporation. Innovative businesses can also claim two other refundable tax credits: the tax credit for technological adaptation services and the tax credit for design.
To simplify and enhance existing tax measures, improve the competitiveness and productivity of Québec businesses, and provide a simpler, more effective tax assistance system, the following changes will be made:
- Consolidate the tax measures that are currently available into a new refundable tax credit;
- Provide a higher basic rate and more accessible increased rate;
- Make certain capital expenditures eligible for the tax credit;
- Introduce a modified exclusion threshold;
- Abolish less effective measures.
13 December 2024 – Significant Enhancements to SR&ED Program Announced Ahead of Fall Economic Statement
Toronto, ON – December 13, 2024 – Deputy Prime Minister and Minister of Finance, Chrystia Freeland, today unveiled a series of substantial enhancements to the Scientific Research and Experimental Development (SR&ED) program
Key Highlights of the Announcement:
Increased Spending Limits for CCPCs: The spending limit for Canadian-Controlled Private Corporations (CCPCs) participating in the SR&ED program will rise from 3 million to 4.5 million, allowing greater investment in R&D activities.
Expanded Taxable Capital Phase-Out Range: The phase-out range for taxable capital will be increased from 10−50 million to 15-75 million, enabling larger enterprises to take advantage of SR&ED benefits.
Enhanced ITC for Canadian-Controlled Public Companies: Canadian-Controlled Public companies will now qualify for an enhanced Investment Tax Credit (ITC) of 35%, up from the previous 15%, making the SR&ED program more accessible to a broader range of businesses.
Reintroduction of Capital Expenditures: The SR&ED program will once again permit capital expenditures, a provision that had been unavailable since 2014. This update allows businesses to incorporate capital costs into their R&D efforts.