Tax credit for the acquisition or rental of property (BDC)

A corporation that carries out an innovation project in a biotechnology development centre (BDC) and holds a certificate issued further to an application made after June 11, 2003, may be entitled to a refundable tax credit equal to 30% of the cost of acquiring or leasing eligible specialized equipment.

The credit is available in regions that have strategic advantages such as infrastructures in health, in education and in scientific research at the university level, as well as a sufficient number of new and growth industries. There are currently BDCs in Laval, Sherbrooke, Saint-Hyacinthe and Lévis.

Corporations that may apply for the credit

In order to claim the credit, the corporation must obtain a certificate from Investissement Québec stating that it is carrying out or may carry out, in a designated site, a business that constitutes an innovation project. To find out the eligibility requirements, contact Investissement Québec.

Expenses giving entitlement to the credit

The credit may be claimed with respect to the costs incurred by the corporation to acquire or lease qualified property. Qualified property is depreciable property that satisfies the following conditions:

• Before being acquired or leased, the property was not used for any other purpose (except in the case of a project transfer).
• The corporation begins to use the property within a reasonable time after its acquisition or lease.
• The corporation uses the property exclusively in a building that houses a BDC, and exclusively or almost exclusively to earn income from a business that it operates in such a building.
• Investissement Québec has issued a certificate with regard to the property.

For more information about qualified property, contact Investissement Québec.

How to apply for the credit

To apply for the credit, the corporation must complete form CO-1029.8.36.AL, Crédits d'impôt pour l'acquisition d'un bien, la location d'un bien ou la location ponctuelle d'installations spécialisées, and enclose the form with its income tax return.

The return must also be accompanied by a copy of the valid certificate issued by Investissement Québec in respect of the qualified property.