Tax Credit for Pre-Competitive Private Partnership Research

For Québec businesses that collaborate with other private companies to tackle early-stage research challenges, tax credits can play a meaningful role in reducing the financial risk of innovation. The Tax Credit for Pre-Competitive Private Partnership Research was designed for exactly this situation, encouraging companies to pool expertise and resources on R&D projects that are still far from commercialization. Administered by the Ministère de l’Économie et de l’Innovation, the program applies across industries and focuses on scientific research and experimental development carried out in Québec.

Through this measure, eligible companies could recover a significant portion of qualifying R&D expenses, with refundable support reaching roughly 30% of eligible costs. The credit applied to work done as part of a genuine private-sector partnership, making it particularly relevant for businesses developing new technologies, processes, or products that require collaboration but may not yet have immediate market returns. Because the credit was refundable, it could provide cash-flow relief even for companies not yet profitable.

It’s important to note that this specific tax credit has been discontinued and is only available for companies whose taxation year began before late March 2025. Some businesses may instead need to look at Québec’s broader R&D and pre-commercialization tax credits for ongoing projects. Understanding how this former program fits into the current innovation funding landscape can help determine what options may still be available for your R&D plans.