Research Consortium Tax Credit

For Québec businesses that collaborate with universities or public research organizations, the Research Consortium Tax Credit has historically been a valuable way to reduce the cost of scientific research and experimental development. Designed for companies investing in R&D carried out in Québec through formal research contracts, this refundable tax credit helped offset a meaningful share of eligible research expenses tied to innovation-focused projects.

Administered by the Québec government through the Ministry of Economy and Innovation, the credit applied to research conducted with recognized universities, public research centres, or approved research consortia. Depending on a company’s structure and size, the credit could cover a modest base portion of eligible R&D costs, with a significantly higher rate available to smaller, Québec-controlled corporations. This made the program particularly attractive to growing businesses looking to access specialized expertise, accelerate product development, or validate new technologies without bearing the full financial risk on their own.

It’s important to note that this tax credit has been phased out. Businesses may still be able to benefit only if their taxation year began before late March 2025. Companies with later taxation years may need to look instead at Québec’s broader R&D and pre-commercialization tax incentives. Understanding whether past or current R&D activities qualify — and what alternatives now exist — can make a meaningful difference to your innovation budget, making it worth exploring the details more closely.