Quebec Budget 2025-2026: Tax Incentives for Innovative Manufacturers

Garage&co published an analysis of Quebec's 2025-2026 budget, focusing on fiscal opportunities for innovative manufacturing companies.

1. Fiscal Changes Supporting Innovation

The government introduced the CRIC (Tax Credit for Research, Innovation and Commercialization), replacing eight existing R&D tax measures. Key coverage includes:

• Regulatory validation activities: Tests of prototypes to verify their functionalities and performances
• Product design: Development of product form, aesthetics, and material selection
• Eligible expenses: Labor costs, equipment acquisition, and 50% of subcontracting fees

The CRIC provides additional financial support totaling 271.5 million dollars over five years.

Additionally, 100% equipment depreciation is available through 2029 for manufacturing machinery, clean energy production equipment, and zero-emission vehicles.

2. Direct Support and Export Development

A $900 million fund supports robotization, automation, digital transformation, and AI integration within Quebec companies.

3. Entrepreneurship Support

• Technum Quebec innovation zone: $100.7 million over five years
• New SME investment fund: $200 million
• Life sciences strategy: $54 million over three years