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November 10, 2020
2020-2660

Incentive deduction for the commercialization of innovations in Quebec discussed

In its March 10, 2020 budget, Quebec announced the introduction of a taxable income deduction for the commercialization of innovations in Quebec (IDCI). In brief, the IDCI is a deduction that will allow a qualified innovative corporation to benefit from a reduced effective tax rate of up to 2% on the qualified portion of its taxable income attributable to qualified intellectual property assets. Although the new deduction cannot be claimed yet, as it will apply for corporate tax years beginning after December 31, 2020, its entry into effect is fast approaching and the upcoming months can be used by corporations to gather the relevant data to prepare their claims or implement processes to be able to generate such data (some of which will be from prior years).

A Tax Alert prepared by Ernst & Young Canada, and attached below, provides additional details.

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Full text of Tax Alert

 

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