Tax holiday for a new business created to commercialize intellectual property

For research-driven founders in Quebec, one of the biggest early challenges is turning promising intellectual property into a viable company without being overwhelmed by taxes in the first years. The Tax holiday for a new business created to commercialize intellectual property is designed to ease that pressure by allowing qualifying startups to reinvest more of their early revenue back into growth rather than income tax.

Administered by the Ministère de l’Économie et de l’Innovation, this Quebec initiative focuses on new companies formed specifically to bring university or public research centre innovations to market. Businesses that hold the required eligibility attestation may benefit from a Quebec income tax exemption on revenue generated by their commercialization activities for as long as a decade. This can significantly improve cash flow during the critical startup phase, making it easier to attract investors, hire specialized talent, and scale technologies developed in the public research ecosystem. The program is commonly associated with sectors such as technology, software licensing, and advanced manufacturing, but applies broadly to commercialization models rooted in eligible intellectual property.

Rather than offering a fixed dollar amount, the value of this support depends on the company’s taxable income over time, making it especially impactful for high-growth startups. For entrepreneurs commercializing Quebec-based research and looking to understand whether their venture qualifies, digging into the program details is a smart next step.