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If you are looking to jumpstart or grow your business and have a compelling product or service, why not take advantage of the resources created for you by our government? In textile, IT & telecom, and in almost all industrial industries, incentives and grants exists to encourage entrepreneurs to springboard their business venture. Our experts at Axxel Inc. can easily help you identify the perfect grant or tax credit to match your project, and then offer turnkey solutions to assist you through the important steps in gathering all supporting documentation to ensure a qualified proposal. 


INVESTMENT TAX CREDIT

Don't miss out on an opportunity to claim between 8% to 32% of your investment on new equipment or machinery that are used for qualifying activities in certain regions of Quebec. 

Aim of the program

An eligible corporation may, under certain conditions, claim the investment tax credit for eligible expenses incurred in a particular year or in a past year for the acquisition of qualified equipment or machinery.

ELIGIBLE CORPORATION

  • To be eligible for this tax credit, the corporation must have an establishment in Québec and operate its business there. It must also have acquired the eligible equipment or machinery before January 1, 2023.

Note that the following companies are not eligible for the investment tax credit:

  • a corporation that is exempt from tax;
  • a Crown corporation or subsidiary wholly controlled by such a corporation;
  • an aluminum production company;
  • a petroleum refining company.

qualifying equipment and/or machinery

Eligible property is property that meets one of the following conditions:

  • It belongs to Class 43 of Schedule B to the Regulation respecting taxes (manufacturing and processing equipment), to Class 29 or to Class 53, and was acquired before 1 January 2023;
  • It belongs to category 43 of Schedule B of the Regulation respecting taxes and was acquired before January 1, 2023 for full use in Québec and mainly for the smelting, refining or hydrometallurgical activities of foreign ores other than ores from a gold or silver mine;
  • It would have belonged to category 43 of Schedule B to the Taxation Regulations, under paragraph b, if that paragraph referred to the smelting, refining or hydrometallurgical activities of ores, other than ores originating from a gold or silver mine, mined from a mineral resource in Canada, and acquired before January 1, 2023.
  • It belongs to Class 50 of Schedule B to the Taxation Regulations, is used mainly for the manufacture or processing of articles for sale or lease and was acquired before January 1, 2023.

The property must also have all of the following characteristics:

  • It is not used in the operation of an ethanol production plant or a cellulosic ethanol production plant;
  • It is new and used only in Québec, mainly for the operation of a business other than a recognized business in which a major investment project or a major investment project is carried out or in progress be;
  • The company began using it within a reasonable time after acquiring it;
  • The company uses it for a minimum period of 730 days.

Equipment or machinery acquired after December 31, 2016, other than those acquired for use primarily in a remote area, in the eastern part of the Bas-Saint-Laurent region or in an intermediate zone, are not considered eligible property.


INTEGRATION OF IT 

Quebec has enhanced an existing tax credit that encourages manufacturing companies to continue to integrate IT into their projects. You may now be eligible to receive up to 50,000$ for integrating management software into your business processes. Let us determine if you're eligible for this grant.

Aim of the program

To stimulate the integration of IT in the business processes of SMEs

Eligible corporation: 

  • Caters to all Quebec SMEs (primary sector, manufacturing, wholesale, retail, all grouped under the NAICS 11-21; 31-33; 41 and 44-45 respectively
  • The company must obtain a contract for the integration of eligible IT from IQ
  • The application for certification must be submitted to IQ after March 26, 2015, and the negotiation of the contract for the integration of IT (written agreement) must have started after March 26, 2015 for manufacturing and primary sectors, and after March 17, 2016 for wholesale and retail sectors

Eligible management software: 

The sale or rental of an enterprise management software, or a free management software, or the rights of use of a management software for the following:

  • The set of business processes by integrating all of the functions of the company
  • Interaction of a company with its customers
  • Network of companies involved in the production of a product or a service required by the final customer to cover all of the movements of matter and information from the point of origin to the point of consumption

Eligible EXPENSES: 

  • Eligible expenditures correspond to 80% of the costs of a contract for the integration of IT
  • The tax credit = 20% of eligible expenses to a maximum of $ 50,000

Development of E-Business 

If your Quebec Corporation is a player in the ever-growing IT & Telecom world, what better way to get ahead of your competitors than benefiting from a refundable tax credit of 30% of the eligible salaries paid by your company to eligible employees? Let an Axxel Inc. specialist help to advance your e-business so that it’s ahead of the game. 

Aim of the program

To consolidate the development of IT throughout Quebec. 

Eligible corporation: 

  • Has an establishment in Quebec. 
  • At least 75% of activities are in the IT sector. 
  • At least 50% of these activities are covered by the following sectors: Computer Systems Design and Related Services, Software Publishing, and under certain circumstances, Temporary Help Services and Professional Employer Organizations. 
  • Must maintain at all times, for a given taxation year, a minimum of 6 eligible full-time employees. 

Eligible employees: 

  • Must hold a full-time job, at least 26 hours per week during 40 weeks 
  • Devote at least 75% of his/her time to carrying out, supervising, or supporting work related to eligible operations. 
  • Under certain circumstances, consultants may be eligible. 

Eligible Operations: 

  • IT consulting services 
  • Development, integration, maintenance, and evolution of information systems and technology infrastructures. 
  • Design and development of e-commerce solutions allowing for financial transaction. 
  • Development of security and identification services. 

Production of Multimedia Titles

Do you have a company that produces multimedia titles in Quebec? If so, let an Axxel Inc. specialist help you, from the moment you commence design and indefinitely thereafter, in taking advantage of this generous refundable tax credit of up to 37.5%.

Aim of the program

  • To encourage the production of multimedia titles in Quebec.

Eligible corporation

  • Established in Quebec 
  • Produces eligible multimedia titles.

Eligible Multimedia:

  • Must be produced by the Company and published on an electronic medium.
  • Must run on a software that supports interactivity.
  • Must contain a substantial volume of 3 of the following types of information: text, sound, still imagines, or animated images.

Admissible expenses

  • Salaries and wages paid eligible employees.
  • The portion of wages paid to subcontractors’ employees that are working under the multimedia production in an establishment located in Quebec.
  • 50% of amounts paid to a subcontractor not dealing at arm’s length with the multimedia producer.

Design of Factory Made Products 

If your Quebec business is a part of industrial design or the textile and fashion industry, you can be reimbursed for 15% or 30% of your payroll expenses. Contact an Axxel Inc. specialist today. 

Aim of the program

  • To improve the competitiveness of factory made products 
  • To maximize the economic benefits for the province of Quebec 

Eligible corporation

  • Established in Quebec 
  • Gross annual income must equal a minimum of $150,000 
  • Certificate of eligibility for a design activity issued by MESI 

Eligible Activities

  • Research and analysis of fashion trends, styling, design sketches, graphic design, pattern markers activities, etc. 

Admissible expenses

  • Salaries of designers and pattern makers 
  • Invoices of consultants: designers and pattern makers 

IRAP 

Want to receive personalized business advice as well as financial contributions to help your Canadian business? Contact Axxel Inc. today so that your SME can grow stronger, faster and larger through innovation and technology. 

Aim of the program

To help SMEs accelerate the growth of their business through innovation and technology. 

Eligible corporation 

  • SME in Canada, incorporated and profit-oriented. 
  • 500 or fewer full-time equivalent employees. 
  • Have the objective to grow and generate profits through development and commercialization of innovative, technology-driven new or improved products, services, or processes in Canada. 

Eligible projects

  • Presence of a solid business case. 
  • Strong management acumen. 
  • Potential to achieve the expected technical results of the project. 
  • Plan to commercialize the developed technologies. 
  • Presence of technological uncertainties that require experimentation. 

Financial Contributions

  • Average of up to $94,000 per new project. 
  • Internal wages: up to 80% 
  • Subcontracting costs: up to 50% 
  • Up to $350,000 non-refundable