Financing of Refundable Tax Credits

Managing cash flow while waiting for refundable tax credits can be a real challenge, especially for innovative and growing businesses in Québec. The Financing of Refundable Tax Credits program is designed to bridge that gap by allowing companies to access funds sooner, rather than waiting months for their tax credit refund. Delivered by Investissement Québec on behalf of the Gouvernement du Québec, this financing option can be particularly valuable for businesses investing heavily in research and development or other credit-eligible activities.

Through this program, eligible Québec businesses can secure a loan or loan guarantee based on the refundable tax credits they expect to receive for a given fiscal year. In many cases, financing can cover most, or even all, of the anticipated credit amount, helping companies maintain momentum on projects, cover operating costs, or reinvest in growth initiatives. For businesses experiencing a temporary loss, loan guarantees may also help reduce risk and improve access to capital. Repayment is typically structured to align with the receipt of the tax credit itself, which can ease financial planning.

This option is available across a wide range of industries and is best suited to businesses that regularly claim refundable tax credits and want to improve short-term liquidity. Understanding how this financing works, along with the requirements and timelines involved, can help determine whether it fits your funding strategy, and GrantHub can help you explore those details further.