The Parti Quebecois government has tabled a 2013-2014 fall budget, which has increased the refundable SR&ED tax credit for the biopharmaceutical sector. The basic refundable tax credit rate of 17.5% will be temporarily increased to 27.5% for eligible biopharmaceutical companies. Generally, this increase will apply to eligible expenditures incurred and work carried out after November 20, 2012, but before January 1, 2018.
To benefit from such increase, the biopharmaceutical corporation has to obtain an initial certificate from Investissement Québec after demonstrating that the eligible activities are related to human health. Eligible corporations will also have to obtain an eligibility certificate each year, which will require companies to show that the eligible activities related to human health accounted for at least 75% of the activities it carried out throughout the year in question.
