Hiring and Training Employees

Financing of Refundable Tax Credits

Investissement Québec

Businesses that qualify for one of the following tax credits:

• Scientific research and experimental development: Federal and provincial sections;

• Payroll increase: Aluminum Valley (VA); Gaspésie and Certain Maritime Regions of Québec (GM); Processing Operations in Resource Regions (AT);

• Knowledge-based economy: Development of E-Business (CDAE); Biotechnology Development Centres (CDB); Major Employment-generating Projects (GPCE); Production of Multimedia Titles (PTM).

• Loan guarantee or loan.
• Minimum amount of loan guarantee: $50,000 for the SRED tax credits and $20,000 for the other tax credits.
• The loan guarantee can cover up to 80% of the net loss.
• The maximum duration for financial assistance is 18 months.
• For loans, the amount granted by Investissement Québec may cover up to 75% of refundable tax credits for a given fiscal year.

Legally incorporated companies except for: 

• Personal service companies;
• Wholesalers (with the exception of value-added distribution centres) and retailers;
• Food and lodging businesses.

Eligible Projects

Activities and projects facilitating expansion outside Québec are eligible and may include the following: 

• Research on markets outside Québec;
• Business and marketing plans for regions outside Québec (development and implementation);
• Measures bolstering international marketing and the use of e-business for export purposes;
• Prospecting missions;
• Trade fairs (visitors or exhibitors);
• Initiatives ensuring adherence to border control measures;
• Negotiation of alliances and partnerships with foreign partners;
• Use of an incubator service for global markets;
• Measures taken with a view to setting up a subsidiary or joint venture or to acquiring a company based outside Québec, provided the investment would have economic benefits for Québec;
• Hiring of an international business expert;
• Greeting of foreign buyers or partners;
• Preparation of a proposal in response to an RFP with a view to securing a major foreign contract.

• Financial assistance is provided in the form of a grant.
• The grant can cover up to 40% of eligible expenses, with a maximum amount of $100,000 per project.
• In the case of a project for which an international business expert is hired, the maximum amount can reach $20,000.

Businesses in Québec.

The amount of financial assistance varies with the difficulty of employment integration and the nature of the position.

Priority is given to processing companies and business service organizations devoted primarily to developing new markets.

Non repayable contribution that can cover up to 25% of training costs, but not exceed $2 million.

Non repayable contribution that can cover up to 50% of human resources management costs, but not exceed $100,000.

Businesses in Québec with a payroll between $250,000 and $10 million.

Eligible activities

• For the development and implementation of a training plan.

Non repayable contribution. Companies eligible for reimbursement of their expenses may receive an amount not exceeding 5% of their payroll, up to a maximum of $100,000 per fiscal year.

• Private-sector business
• Association of private-sector businesses

Types of training

• Occupational training
• Refresher training for managers
• Customer service, etc.

The amount of the financial assistance is calculated on the basis of the company's financial situation. It can cover up to 50% of the costs incurred.

Gaspésie and Certain Maritime Regions of Québec

Investissement Québec

Business in the Gaspésie—Îles-de-la-Madeleine, Côte-Nord, Matane RCM or Bas-Saint-Laurent regions that carry on eligible operations or start carrying on eligible operations by no later than the 2015 calendar year and that create at least three full-time jobs.

Eligible operations

• Processing of seafood products;
• Manufacturing and processing of finished or semi-finished marine biotechnology products;
• Production of wind energy and manufacturing of wind turbines;
• Aquaculture;
• Marketing activities that are incidental to the above-mentioned operations;
• All manufacturing operations carried on in the Gaspésie—Îles-de-la-Madeleine administrative region.

Refundable tax credit covering 20% of the payroll increase.

For businesses in the marine biology and aquaculture sectors, the tax credit is 40% of the total wages paid to eligible employees of the business and is not based on the payroll increase.

Available until December 31, 2015.

Aluminum Valley

Investissement Québec

Businesses in the Saguenay—Lac-Saint-Jean region that carry on eligible operations or start carrying on eligible operations by no later than the 2015 calendar year and that create at least three full-time jobs.

Eligible operations

• Manufacturing of finished or semi-finished products from aluminum having already undergone primary processing;
• Reclamation and recycling of waste and residue from aluminum processing;
• Marketing activities that are incidental to the above-mentioned operations.

Refundable tax credit covering 20% of the payroll increase.
Available until December 31, 2015.  

Businesses that hire immigrants who have an adequate knowledge of French.

Expenditures eligible for the credit include the training costs incurred by the business as well as the wages paid to the employee taking training.

Workplace francization tax credit covering 30% of expenditures incurred between March 14, 2008 and December 31, 2012 for French-language training given to employees with the status of protected person, temporary resident or permanent resident.