Tax Credit for Design in Quebec ### 📋 Eligible Entities - Quebec-based corporations (including private and public companies) - Sole proprietors operating in Quebec - Partnerships registered in Quebec - Non-profit organizations engaged in design activities - Businesses must be actively engaged in design work as part of their operations - Must have a Quebec source of income and file Quebec tax returns ### 💰 Funding Details - Tax Credit Rate: 12% to 24% of eligible design costs - Maximum Annual Eligible Salary (Designer): $60,000 per year - Maximum Annual Eligible Salary (Pattern Maker): $40,000 per year - Structure: Non-refundable tax credit applied against Quebec income tax payable - Calculation Example: At 12-24% rate on $60,000 designer salary = $7,200 to $14,400 annual credit - No matching requirement: Businesses bear 100% of design costs; credit reduces tax liability - Not a repayable loan: This is a permanent tax credit (non-refundable) ### 🛠️ Approved Expenses - In-house designer salaries (up to $60,000/year per designer) - In-house pattern maker salaries (up to $40,000/year per pattern maker) - Direct design-related payroll costs for employees performing design work - Design activities that create original intellectual property or aesthetic products - Must be in-house activities (outsourced design does not qualify) ### ⚠️ Conditions & Milestones - In-House Requirement: Design work must be performed by employees on payroll; outsourced design is ineligible - Salary Caps: Credits apply only to salary amounts up to the specified maximums ($60,000 designers, $40,000 pattern makers) - Annual Calculation: Credit is calculated and claimed on annual Quebec tax returns - Documentation: Employer must maintain payroll records and design project documentation - Tax Filing: Credit is claimed through Quebec tax return submission (