Running a business in Quebec can be expensive. Payroll and compliance costs can be significant for Quebec businesses. But Quebec corporate and payroll tax credits can directly lower these costs—sometimes by tens of thousands of dollars each year. These credits are part of the provincial tax system and help offset wages, training, and technology expenses.
Quebec has some of the most generous refundable tax credits in Canada. Refundable means you can get cash back even if your business owes little or no corporate tax. This is especially helpful for small and medium-sized businesses, growing tech firms, and manufacturers investing in people and technology.
Quebec corporate and payroll tax credits reduce the real cost of salaries, training, and innovation projects. Unlike grants, you claim these credits when you file your corporate tax return with Revenu Québec.
Below are three programs that show how these credits help businesses.
The Tax Credit for Technological Adaptation Services supports businesses that hire outside experts to adopt or adapt new technology.
What the credit covers
How it lowers costs
This credit is important for manufacturers, agri-food processors, and industrial SMEs that need technical expertise but don’t have it on staff.
The Development of E-Business Tax Credit is a popular payroll tax credit for technology-focused companies.
Key features
How it lowers costs
For eligible companies, this credit makes high-skill wages more affordable and predictable.
The Tax Credit for an On-the-Job Training Period helps employers cover the cost of training new or transitioning employees.
What’s covered
How it lowers costs
For employers facing labour shortages or skills gaps, this credit helps build a skilled workforce.
GrantHub’s eligibility matcher can help you quickly find Quebec tax credits that fit your industry, payroll, and project needs.
To benefit from Quebec’s tax credits, you must follow the proper steps and keep good records:
Many businesses work with their accountant or a tax credit specialist to make sure nothing is missed.
Many Quebec businesses qualify for more than one credit in the same year. For example:
The combined effect is a lower cost per employee, reduced consulting fees, and better cash flow—all without extra debt.
Thinking only profitable companies benefit
Many Quebec credits are refundable. You can receive money back even if you owe little or no tax.
Not keeping proper records
Revenu Québec expects detailed records, contracts, and invoices. Missing paperwork can lead to a denied claim.
Using ineligible service providers
For technological adaptation services, only recognized centres qualify. If you hire the wrong provider, the expense is not eligible.
Not working with your accountant
Some credits affect each other. Planning with your accountant helps you get the most benefit.
Q: Are Quebec corporate and payroll tax credits the same as grants?
No. Tax credits are claimed through your corporate tax return, while grants are usually paid directly. Refundable tax credits can still result in cash payments.
Q: Can small businesses claim the Tax Credit for Technological Adaptation Services?
Yes. Many SMEs qualify, as long as the services come from an eligible technology transfer or liaison centre.
Q: How long does it take to receive a refundable tax credit?
Timing depends on when you file and how quickly Revenu Québec processes your return. It is usually received after your corporate tax assessment.
Q: Can I combine Quebec tax credits with federal programs?
In many cases, yes. However, the same expense usually cannot be fully subsidized twice. Your accountant can help coordinate claims.
Q: Are refundable tax credits considered taxable income?
They are generally included in income for tax purposes, so it’s important to plan for this.
Quebec corporate and payroll tax credits can lower your operating costs, but only if you know which ones fit your business and projects. GrantHub tracks hundreds of active grant and tax credit programs across Canada, providing information on Quebec credits relevant to your payroll, training, and technology plans. You can also use GrantHub to check deadlines and required documents before you apply.
See also:
Was this article helpful?
Rate it so we can improve our content.
Canada Proactive Disclosure Data
The Canadian government has funded over 400,000 businesses through 1.27 million grants and contributions. Check your eligibility in 60 seconds.