Resource Regions

New system

This tax measure is designed to encourage economic diversification in resource regions and stimulate development and expansion of local businesses. Eligible corporations can obtain a tax credit until December 31, 2015.

 

Major changes applicable as of calendar year 2010 have been made to this tax credit. This page and the detailed fact sheet entitled "Resource Regions - New System" take these changes into account.

Please note that corporations that were eligible for this tax credit as at December 31, 2009 may elect to benefit from the new system as of 2010 or to remain under the old system. For information on the eligibility requirements and the details of the financial assistance offered under the old system, please refer to the detailed fact sheet entitled "Resource Regions - Old System."

 

The following territories are recognized as resource regions: Bas-Saint-Laurent, Côte-Nord, Saguenay—Lac-Saint-Jean, Mauricie, Abitibi-Témiscamingue, Nord-du-Québec, Antoine-Labelle Regional County Municipality (RCM), Vallée-de-la-Gatineau RCM and Pontiac RCM. For 2013 to 2015, certain regions are now ineligible. Please consult the detailed fact sheets (Old System and New System) on our website.

 

ELIGIBILITY CRITERIA

 

Eligible Operations

  • Wood: manufacturing and processing of finished or semi-finished products, including drying and planing operations; manufacturing and processing of products from paper and paperboard;
  • Energy: environmentally friendly production of non-conventional energy from biomass or hydrogen; manufacturing of products destined for energy production or use;
  • Metals: manufacturing and processing of finished or semi-finished metal products;
  • Food sector: manufacturing and processing of food;
  • Marketing of a product or equipment (marketing activities must be incidental to manufacturing or processing activities).
  • Other sectors:
    • Manufacturing of finished or semi-finished products from peat or slate (as of 2010, these activities are ineligible for the Bas-Saint-Laurent and Côte-Nord regions);
    • Manufacturing and processing of finished or semi-finished products from precious or ornamental stones, including the setting of such stones and manufacturing of jewellery;
    • Reclamation and recycling of wastes and residue from the development or processing of natural resources;
    • Freshwater aquaculture;
    • Printing and publishing, including operations related to typesetting, printing, collating, folding and binding;
    • Manufacturing and processing of finished or semi-finished products from non-metallic minerals.

 

N.B.: A corporation that is eligible under the new Resource Regions system may now claim the investment tax credit for manufacturing and processing activities if it meets the applicable requirements.

 

Eligible Employees

To be eligible, employees must work in a facility operated by an eligible corporation located in a resource region, and devote at least 75% of their time to tasks directly related to eligible activities, which exclude, for instance, general administrative tasks.  

 

Eligible Wages

The eligible wage corresponds to employment income generally calculated pursuant to the Income Tax Act.

 

Special Requirements

To be entitled to the tax credit, your corporation must be recognized as at December 31, 2009; i.e., it must hold an initial eligibility certificate under the old Resource Regions system (hereafter "old RR system").

Your corporation must also obtain from Investissement Québec an annual eligibility certificate for its activities along with an annual eligibility certificate for its employees.

 

ELIGIBILITY PERIOD AND DURATION

 

Applications for this tax credit may be submitted until December 31, 2015. The recognized corporation's operations in the eligible region must have begun no later than March 31, 2008.

 

DETAILS OF TAX ASSISTANCE

 

Nature of Assistance

Refundable tax credit based on payroll increase attributable to eligible employees of a recognized corporation, calculated as follows:

 

* The credit rate, as well as the calendar years for which the corporation eligible under the new RR system may apply for tax assistance, varies according to the resource region in which the recognized business conducts its activities. Please refer to the detailed fact sheet on our website.

** The base calendar year of an eligible corporation is that which applied for the purpose of determining the tax credit under the old RR system or which would have applied had the corporation applied for such tax credit for calendar year 2009.

 

Fees

Fees are charged for the analysis of all eligibility certificate applications. For more information, contact an Investissement Québec advisor, or see the rates schedule on our website.

 

PROCEDURE

 

Step 1

Contact an Investissement Québec advisor, who will answer your questions and tell you where to get a copy of the application form for an eligibility certificate on our website.

 

Step 2

Complete the form and send it to Investissement Québec. If your corporation is eligible, you will receive an initial eligibility certificate.

 

Step 3

At your financial year-end, submit your applications for an annual eligibility certificate. Remember: your application must be for a full calendar year.

 

You can also take advantage of our Interim Financing of Tax Credits program.

 

December 2009