Request a certificate of eligibility for the tax credit for construction or conversion of a vessel
No specific amount was identified.
Tax Credit
Description:
The eligibility certificate is used to certify, based on plans and specifications, that a shipbuilding project corresponds to the construction of a prototype ship for the purposes of the refundable tax credit for shipbuilders.
Comments on Funding:
N/A
Continuous Intake. No specific deadline was identified.
Eligibility:
Eligible construction site
To be eligible, the site must:
be located in Quebec and have direct access to a navigable body of water;
have workshops for the construction under permanent shelter of ships in whole or in modules;
have the necessary infrastructure for launching the vessel to be built;
to have demonstrated one’s ability by having built or rebuilt Read the contents of note number1 , for less than five years, a ship or barge of more than 50 gross tons Read the contents of note number2 for an unrelated client;
have a permanent number of employees regularly engaged in shipbuilding, reconstruction or repair Read the contents of note number3 on a haulage plan or in dry dock.
Eligible vessel
To be eligible, the vessel must:
be of a volume of 50 gross registered tons or more;
be used for the transport of goods or people, or to provide a specialized service (for example: icebreakers and dredgers);
if it is a transformation, undergo major work from a technical and quantitative point of view which involves significant changes to the superstructures, machinery or equipment, and which have the effect of modifying essential characteristics of the vessel.
Eligible prototype ship
To be eligible, the prototype vessel must:
be defined as the first in a series whose potential for repetition is demonstrated either by:
(conditional) order commitments,
letters of intent from customers who already operate maritime services,
a market study demonstrating the construction potential for a series of ships;
present essential characteristics different from those of ships built or converted previously.
The performance of work relating to the construction or transformation of the vessel must require an investment in innovation in one of the following areas:
Planning of works;
Production methods and processes;
The integration of advanced or ecological technologies.
Application Steps:
Instructions for opening the form
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Request a certificate of eligibility
The certificate of eligibility must be requested when there is an agreement with a client on a shipbuilding project (letter of intent), but before entering into a firm contract with this client. A contract may include financing clauses conditional on obtaining a certificate of eligibility for the shipbuilding tax credit.
Prepare the following documents:
An application form (PDF 1.07 MB) with:
a brief description of the ship project,
an assessment of its gross tonnage,
any other available information;
Preliminary plans and specifications.
If necessary, you can request a pre-eligibility opinion to determine whether your project appears to qualify for obtaining a vessel certificate based on the information received.
Documentation Needed:
1. Application form (PDF 1.07 MB) including:
– A brief description of the ship project
– An assessment of its gross tonnage
– Any other available information
2. Preliminary plans and specifications
3. (If necessary) Request for a pre-eligibility opinion to determine qualification for a vessel certificate
Other Things to Note:
Request a ship certificate
As soon as you have concluded your shipbuilding contract with the shipowner, you must apply for their ship certificate.
To obtain a ship certificate, you must file:
the request prior to signing the contract;
a copy of the shipbuilding contract signed by the parties;
a copy of the plans and specifications stipulated in the ship construction contract;
a comparison with the existing list price to support the justification of costs where the shipowner is a related company;
a duly completed and signed application form (PDF 1.07 MB) .
This latter requirement requires a demonstration justifying eligibility as a prototype ship or as a series ship.
About the author
Maurice
