Quebec Investment & Innovation Tax Credit (C3I)

Administered by Revenu Québec, the C3I is a refundable corporate tax credit designed to help eligible Quebec businesses recover part of the cost of qualifying investments in manufacturing equipment, electronic equipment, and management software—so you can modernize faster and protect cash flow.

Investing in Quebec? Claim Your Refundable C3I Tax Credit

Thank you for your interest! Our team will get in touch shortly to discuss how you can benefit from the Quebec Investment & Innovation Tax Credit (C3I).

What is the Quebec Investment & Innovation Tax Credit (C3I)?

The Quebec Investment & Innovation Tax Credit (C3I) is a refundable corporate tax credit administered by Revenu Québec. It encourages eligible corporations to invest in productivity and innovation by providing a refund on qualifying equipment and software used in Quebec.

Who is eligible?

In general, an eligible corporation must, in its taxation year:
● Have an establishment in Québec
● Carry on a business in Québec

Some entities are not eligible (e.g., tax-exempt corporations, certain Crown corporations, and specific industries such as aluminum production and petroleum refining). If a specified property is acquired by a partnership, eligibility conditions apply at the partnership level, and the credit is allocated to eligible corporate members.

What types of investments qualify under C3I?

C3I generally applies to specified property acquired for use mainly in Québec, including:
● Manufacturing and processing equipment (production machinery, automation, eligible equipment upgrades)
● Electronic and IT equipment used for business operations
● Management software packages that support operations and productivity

Eligibility depends on how the asset is used, where it is used, and the applicable acquisition rules.

WHAT ARE THE RETURN RATES OF C3I?

1
The C3I credit rate generally ranges from 15% to 25% of eligible investment costs after an excluded amount. The exact rate depends on factors such as the economic vitality zone where the property is mainly used and the acquisition period.
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C3I is refundable, which means it can generate a cash benefit even if no Québec corporate income tax is payable for the year. This supports cash flow while funding modernization and innovation initiatives.

How C3I Can Improve Cash Flow on Modernization Investments

A Quebec company invests in eligible production equipment and management software.

Eligible Equipment $800,000
Eligible Management Software $200,000
Total Eligible Investment $1,000,000
Rate 20%

Estimated C3I Refund:

$200,000 Estimate Your Refund arrow_outward arrow_outward

How the C3I Claim Process Works with Leyton

MANDATE LAUNCH

Collect the information needed to confirm eligibility (asset list, invoices, proof of payment, usage location).

ELIGIBILITY REVIEW

Validate your corporation and each asset against C3I requirements, including use in Québec and applicable rules.

CLAIM PREPARATION

Prepare the claim package and supporting documentation, including required Revenu Québec forms (e.g., CO-1029.8.36.II).

SUBMISSION & FOLLOW-UP

Coordinate submission with your accountant, handle follow-ups with Revenu Québec, and support you in case of review or audit.

FAQs

All you need to know about the Quebec Investment & Innovation Tax Credit (C3I)

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What is the C3I tax credit? keyboard_arrow_down keyboard_arrow_up

The Quebec Investment & Innovation Tax Credit (C3I) is a refundable corporate tax credit administered by Revenu Québec. It supports eligible corporations that invest in qualifying equipment and software used mainly in Québec.

Who can apply? keyboard_arrow_down keyboard_arrow_up

Generally, a corporation must have an establishment in Québec and carry on a business in Québec during the taxation year. Certain corporations (e.g., tax-exempt entities and specific industries) are not eligible.

What investments are typically eligible? keyboard_arrow_down keyboard_arrow_up

C3I can apply to manufacturing and processing equipment, electronic/IT equipment, and management software packages, when they meet the program requirements and are used mainly in Québec.

Is C3I refundable? keyboard_arrow_down keyboard_arrow_up

Yes. C3I is generally refundable, meaning it can generate a cash benefit even if no Québec corporate income tax is payable for the year.

How much can I claim? keyboard_arrow_down keyboard_arrow_up

The credit rate generally ranges from 15% to 25% of eligible investment costs after an excluded amount. The exact rate depends on factors such as the economic vitality zone where the property is mainly used and the acquisition period.

Can C3I be combined with other incentives? keyboard_arrow_down keyboard_arrow_up

In many cases, businesses can combine investment-related incentives with other programs (depending on rules and interactions). Leyton can help you assess how C3I fits within your broader funding and tax strategy.

What documents are typically needed? keyboard_arrow_down keyboard_arrow_up

Common supporting documentation includes:
● Detailed invoices and proof of payment
● Purchase/lease agreements (where applicable)
● An asset list with acquisition dates, supplier info, cost (pre-tax), and where the asset is mainly used

Leyton helps you organize documentation to stay audit-ready.

How do I claim C3I? keyboard_arrow_down keyboard_arrow_up

C3I is claimed through your Québec corporate income tax return using the prescribed Revenu Québec forms (e.g., CO-1029.8.36.II, and related forms where applicable).

How long does the process take? keyboard_arrow_down keyboard_arrow_up

Timing depends on your investment volume, documentation readiness, and filing cycle. Leyton streamlines the process by validating eligibility early and preparing an audit-ready claim package.

Why choose Leyton? keyboard_arrow_down keyboard_arrow_up

We act as a strategic partner—helping you identify eligible assets, maximize the credit value, reduce risk, and lighten the workload for your finance and operations teams.

Maximize Your Quebec C3I Refund Today

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