Tax insights: Introduction of a refundable tax credit for the integration of Information Technologies in manufacturing SMEs

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Issue 2013-14

The objective of this new program from the Quebec Government is to support Quebec manufacturing companies that want to invest in technology and integrate IT in their business processes by offering a refundable tax credit pertaining to expenditures on qualified management software package.

For this new tax credit the qualified corporations and qualified partnerships must meet the following requirements:

  • They have an establishment in Quebec and carry on a business there;
  • They have a proportion of manufacturing or processing activity (PMPA), for the taxation year, which exceeds 50%;
  • They are not:
    • Tax-Exempt Corporations;
    • Crown corporations or wholly-controlled subsidiaries of such corporations;
    • Aluminum producing corporations;
    • Oil refining corporations.

Eligible expenditures
Eligible expenditures consist of expenditures relating to the lease or acquisition of rights to use a management software package or an open-source management software package that mainly enables management of:

  • The operational processes of a business by integrating all of the functions of the business;
  • The interactions of a business with its customers through multiple interconnected communications channels;
  • A network of businesses involved in the production of a product or service required by the final customer to cover all movements of information, from the source to the point of consumption;
  • The delivery of services relating to the development, integration (installation and implementation), reconfiguration and evolution of the software package;
  • The delivery of services required to support and train the personnel of the business and resolve bugs in relation to the integration of the software package;
  • The purchase, lease or rights of use of general-purpose electronic data processing equipment and systems software for that equipment and ancillary data processing equipment, as well as the application software required in the course of the integration of the software package in the business.

Read our publication to learn more.