Québec budget earmarks $526M for manufacturing innovation
- March 11, 2020
The budget commits to support the productivity and competitiveness of Québec companies in an effort to create an environment conducive to investment, innovation and a stronger, green economy.
With 75 per cent of Québec companies deemed to have a low level of technological maturity, the government plans to introduce a tax credit for investment and innovation.
The tax measure earmarks $526 million over five years to support companies in the digital shift, promote the modernization of manufacturing equipment, and to increase the use of automated processes.
Aéro Montréal says about 10,000 companies stand to benefit from the initiative.
To encourage the commercialization of Québec innovations, enhance the competitiveness of companies and enable them to stand out on the international stage, the government announced the introduction of the incentive deduction for the commercialization of innovations (IDCI). Over the next five years, the financial impact of this measure would be $91.8 million.
The government also gave a nod to Québec SMEs by proposing a capital synergy tax credit aimed at encouraging established businesses to invest in the capital stock of local SMEs.
Another $1.3 billion will be allocated to promote the “decarbonization” of businesses while ensuring their competitiveness.
"In the face of the labour scarcity challenge currently affecting the aerospace industry, Aéro Montréal applauds the fiscal measures planned to improve the productivity of Québec businesses," said Suzanne M. Benoît, president of Aéro Montréal. "By placing the fight against climate change at the heart of its concerns, the government is also underscoring its desire to make Québec a leader in innovation and encouraging the aerospace industry to multiply its efforts to be a key player in this energy transition and contribute to a green economy."
Aéro Montréal is a strategic think tank that groups all major decision makers in Québec's aerospace sector, including companies, educational and research institutions, as well as associations and unions.