Last week's announcement of Québec's 2016-2017
Budget included an exciting new tax relief initiative for
qualifying innovative Québec manufacturing corporations. The
Innovative Companies Deduction (ICD), also commonly referred to as
the patent box or IP box, provides tax relief to manufacturing
firms for patent attributable revenue from products marketed in
Québec that include a feature protected by patent and
developed in Québec. The measure is designed to promote
Québec commercialization. It aims to ensure that patented
innovations developed in Québec will also be marketed in
Québec.
The Benefit
As of January 1, 2017, eligible manufacturing companies
generating revenues on goods (either from sale or rent) that
include a patented innovation developed in Québec will
benefit from a tax rate decrease of 11.8% to 4.0% for income
attributable to that patent. The income generated from the patent
however cannot exceed 50% of the revenue of the goods manufactured
in
