Validation certificate for pre-competitive research consortiums

This document was prepared with the information on the ministère du Développement économique, de l'Innovation et de l'Exportation’s Web site.

This tax measure is for businesses that join consortiums for the purpose of carrying out pre-competitive research. It aims to encourage enterprises in the same sector or in related sectors to join or create such consortiums to carry out pre-competitive research together.

Eligibility Criteria

• Enterprises in the same industrial sector or in related sectors that form a recognized pre-competitive research consortium;
• A private centre duly constituted under the laws of Canada and active in Quebec, whose members:
  • Are primarily existing private non-profit organizations
  • May include public or parapublic organizations working in the same field or related sectors.

Eligible Activities

Pre-competitive scientific research and experimental development activities linked to the scientific and technological interests of the consortium members.

Summary

This refundable tax credit offers these enterprises tax advantages similar to those granted to partnerships with recognized public research centres or academic institutions.

These research consortiums are funded by membership fees and service contracts. This funding formula enables them to:

• carry out the generic phase of developing a new process, product, or service;
• reduce the costs and share the risks involved in expensive research and development projects;
• use specialized resources and equipment to resolve specific problems;
• strengthen the technological position of their sector in the international market.

Pre-competitive research consists of basic or applied research and can include part of the development phase. At the pre-competitive stage, research results are not immediately marketable even though they lead to the creation of new products and processes.

Given their generic nature, the research activities may have potential applications in many different industrial sectors or may be used to develop commercially distinct products by each company according to its own needs.

Enterprises that are members of a recognized research consortium may obtain a refundable tax credit of up to 35% of the dues or fees paid to the consortium that are reasonably attributable to the scientific research and experimental development undertaken in Québec. Expenses related to these fees or dues are still fully deductible, irrespective of the tax credit.

For more information, consult the Web site  http://www.mdeie.gouv.qc.ca/page/web/portail/en/scienceTechnologie/nav/programs.html?&iddoc;=64864

Quebec Contact(s):
Direction du développement de la recherche
Ministère du Développement économique, de l'Innovation et de l'Exportation
4th Floor
South Tower
380 Saint-Antoine West
Montréal, Quebec  H2Y 3X7
Telephone: 514 873-8330, 418 643-8757
Toll-free (information): 1-877-511-5889