Published | Category : Income tax - businesses
Extension of the Tax Credit Relating to Information Technology Integration
The Ministère des Finances has announced that the tax credit relating to information technology integration will be extended for another year.
The rate of the tax credit is 20%. It is calculated on 80% of expenditures relating to the supply of a qualified management software package and to an information technology (IT) integration contract for which Investissement Québec has issued a certificate. The rate is reduced linearly if the qualified corporation's paid-up capital is between $35 million and $50 million. It is 0% if the corporation's paid-up capital is $50 million or more.
For the duration of the tax credit, the total amount that a qualified corporation can receive regarding one or more eligible IT integration contracts is limited to $50,000.
For a qualified corporation to claim the tax credit, expenditures relating to the supply of a qualified management software package must be incurred before January 1, 2020, and an application for a certificate regarding an eligible IT integration contract must be submitted to Investissement Québec prior to that date.
A corporation that is a member of a partnership can also claim the tax credit.
For more information, see information bulletin 2019-11 published by the Ministère des Finances.