Published | Category : Income tax - businesses
Establishment of a Tax Credit Relating to Major Digital Transformation Projects
A temporary refundable tax credit has been established to support the implementation and maintenance of major digital transformation projects in Québec.
The tax credit applies to eligible digitization contracts entered into after March 17, 2016, and before January 1, 2019, and is intended to encourage the implementation of projects that create in Québec at least 500 jobs that must be maintained for a period of seven years.
The tax credit is equal to 24% of the qualified wages paid by a corporation to an eligible employee under an eligible digitization contract over a two-year period, up to a maximum of $20,000 per employee each year.
Investissement Québec must issue a certificate in respect of the contract for it to be considered an eligible digitization contract.
For more information, see pages A.59 to A.67 of the document entitled Additional Information 2016-2017 (PDF – 2.88 MB), published by the Ministère des Finances.