IMPORTANT: Get in touch with us quickly, as the discussion regarding your project must start before January 1st 2020 in order for you to be eligible for the tax credit!
Contact us so we can accompany you in this process.
Investissement Quebec is offering a tax credit of up to 50,000 $ for the implementation, modification or integration of a CRM or ERP system.
In summary:
Link to the Website of Investissement Quebec:
PDF file from Investissement Quebec:
https://www.investquebec.com/Documents/qc/FichesDetaillees/FTCTIM_en.pdf
Information from the Website of Investissement Quebec:
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This tax measure encourages Québec SMBs to integrate IT into their business processes. Eligible corporations can obtain a refundable tax credit.
This refundable tax credit covers 20% of eligible expenditures related to a qualified IT integration contract. The total amount of the credit is limited to $50,000 for the duration of the credit.
The tax credit is reduced linearly where the paid-up capital of the corporation and any associated corporations exceeds $35 million but is less than $50 million. The corporation may not receive the tax credit if its paid-up capital is $50 million or more.
Eligible Businesses
A corporation (or a partnership of which it is a member) that has an establishment in Québec and carries on mainly activities (more than 50%) in an eligible sector is eligible for this tax measure.
Eligible sectors(1)
(1) Eligible sectors are grouped together under specific North American Industry Classification System (NAICS) codes established by Statistics Canada. Sectors identified by the following NAICS codes are eligible: primary – NAICS 11-21; manufacturing – NAICS 31-33; wholesale trade – NAICS 41 and retail trade – NAICS 44-45.
Qualified IT Integration Contract
A qualified IT integration contract means a written agreement that satisfies the following conditions.
Assessment
The contract is related to a preliminary analysis carried out by or for the corporation or partnership for the purpose of setting out a plan describing its needs in order to gain access to a computer system infrastructure allowing for the use of a management software package to optimize its business processes.
Subcontractor at Arm’s Length
An IT integration contract must be entered into with a person at arm’s length with the corporation or partnership, under which that person undertakes to supply a qualified management software package.
Supply of a Qualified Management Software Package
The supply of a qualified management software package means one or more of the following activities:
Eligible Expenditures Related to the Supply of a Qualified Management Software Package
Eligible expenditures correspond to 80% of the costs associated with a qualified IT integration contract. The cumulative total of all eligible expenditures must not exceed $250,000 ($312,500 x 80%).
Special Requirements
To be entitled to the tax credit, your corporation or partnership must apply to Investissement Québec for certification of the qualified IT integration contract pertaining to the supply of a qualified management software package.
Eligibility Period and Duration
The eligible corporation may claim the tax credit for expenditures related to a qualified IT integration contract in regard to which negotiations began before January 1, 2020. The IT contract negotiations must have begun after March 26, 2015 for corporations in the primary and manufacturing sectors, and after March 17, 2016 for corporations in the wholesale and retail trade sectors.
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