Crédit d’impôt Capital Synergie (Synergy Capital Tax Credit)

By mmuise
Description:

This tax measure is intended to promote business networking and synergy between Québec businesses. It allows an established business (investor) that subscribes to the capital stock of a growing innovative corporation (eligible corporation) to obtain a non-refundable tax credit that can reach an annual maximum of $225,000.


Comments on Funding:

An eligible investor, for a taxation year, may claim a non-refundable tax credit equal to 30% of the total of the amounts each of which is an eligible investment for the year and not exceeding $750,000.

Deadline: Rolling deadline
Eligibility:

Eligible investor:


    A corporation could benefit from the Capital Synergie tax credit if it has an establishment in Québec, its main activity is not financing or investment and if it invests in the form of share capital in an eligible corporation with which it at arm's length, for a minimum holding period of 5 years.
    Eligible corporation:
    An eligible corporation is a corporation whose paid-up capital, for its most recent taxation year, at the time of filing its application for an authorized placement certificate, is less than $15 million, which is a Canadian-controlled private corporation operating a business in Quebec and has an establishment there. In addition, the company has, for its most recent fiscal year, gross revenue of less than $10M and has been in business for at least 12 months in one of the following eligible sectors:
  • life sciences;
  • manufacturing or processing;
  • green technologies;
  • artificial intelligence;
  • information technology.
Application Steps:

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Documentation Needed:

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Other Things to Note:

1. The amount of the authorized investment of an eligible corporation that will be the subject of the certificate, will be determined by Investissement Québec following the presentation, by the eligible corporation, of a detailed description and the deadlines of the planned use. funds from the eligible investor(s). The aggregate of the amounts covered by an authorized investment certificate, for an eligible corporation, may not exceed $1 million for each 12-month period.
2. Investissement Québec may issue authorized investment certificates for an amount not exceeding $30 million per calendar year.

About the author
mmuise