Tax credit for salaries and wages (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 of 30% of the salary or wages paid to an eligible employee (a limit of $37,500 applies). The credit may be claimed for a maximum of 10 years.

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 an innovation project in a designated site. To find out the eligibility requirements, contact Investissement Québec.

Expenses giving entitlement to the credit

The credit may be claimed with respect to the salaries and wages paid to eligible employees, during the corporation's eligibility period, for an innovation project.

The corporation must also obtain a certificate each year for each employee. The employee must spend at least 90% of his or her working hours in undertaking, supervising or supporting work that is directly related to the activities of the recognized business carried on by the corporation.

How to apply for the credit

To apply for the credit, the corporation must complete form CO-1029.8.36.PN, Crédit d'impôt relatif aux salaires pour un projet novateur, and enclose the form with its income tax return.

The return must also be accompanied by a copy of the valid certificates issued by Investissement Québec with regard to the corporation, the innovation project and the eligible employee.