Companies
To be eligible for the tax credit, companies must meet the following conditions:
- They must be established in Québec and operate an eligible business.
- They have been given no exemption from income tax other than the five-year tax holiday granted to new companies, or the tax holiday granted to small and medium-sized manufacturing businesses in remote resource regions.
The company may also be a member of a partnership. In such a case, the first two criteria listed above apply to the company, and the eligible expenses correspond to its share (determined on the basis of the distribution of profits) of the eligible expenses incurred by the partnership.
Individuals
To be eligible for the tax credit, individuals must meet the following conditions:
- They must operate a business in Québec.
- When the individual is a member of a partnership, his or her eligible expenses correspond to the share (determined on the basis of the distribution of profits) of eligible expenses incurred by the company.
- Eligible individuals who own a business or who are members of a partnership may supervise a trainee. However, an individual may claim a tax credit for the supervision only if a salaried employee of the business acts as the supervisor.
The following organizations and companies are not eligible for the tax credit:
- Crown corporations
- provincial or federal government ministries and organizations
- cities and municipalities
- corporations, commissions or associations owned by a government (i.e. where more than 90 per cent of the shares are held by governments) and any subsidiaries
- nonprofit organizations
