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Resources Areas of Investissement Quebec : Stock investing, loan, etc

Resources Areas

This tax measurement aims supporting the economic diversification of the areas resources and at stimulating the creation and the expansion of local companies. It makes it possible the acceptable companies to obtain a tax credit until December 31, 2009. Are recognized like areas resources the following territories: Low-Saint-Laurent, Coast-North, Saguenay??Lac-Saint-Jean, Mauricie, Abitibi-T??miscamingue, North-of-Quebec, Gasp??sie?? Island-of-the-Madeleine, MRC of Antoine-Labelle, MRC of Valley-of-the-Gatineau and MRC from Pontiac.

CRITERIA Of ADMISSIBILITY Acceptable activities

- Drink: manufacture and transformation of finished or semi-finished products, including the activities of drying and planing; manufacture and transformation of products starting from paper and the paperboard; - Energy: nonconventional energy production in an ecological way starting from the biomass or hydrogen; manufacture of products intended for the production or the use of energy; * Metals: manufacture and transformation of products finished or semi-finished starting from metals; - Food: food manufacture and transformation; - Installation or marketing of a product or equipment (must be additional with the activities of manufacture or transformation).

The activities of installation are excluded in the case of the companies which deposit a request after March 23, 2006. The companies which deposited a request or obtained a certificate of admissibility before March 23, 2006 can profit from the tax credit with regard to these activities until December 31, 2007. -Other sectors: O Manufacture of products finished or semi-finished starting from the peat or of slate; O Manufacture and transformation of products finished or semi-finished starting from invaluable stones or of fine stones, including the setting of such stones and the manufacture of jewels; O Residue and valorization and waste recycling resulting from the exploitation or the transformation of natural resources; O Fresh water aquiculture; O Impression or publication, including the activities relating to the composition, the impression, the document collating, folding and the setting in bundle; O Manufacture and transformation of products finished or semi-finished starting from nonmetal minerals.

Acceptable employees

To be acceptable, the employee must work in an establishment of an acceptable company, located in an area resource, and devote at least 75% of his time to tasks directly related to the acceptable activities, which excludes in particular the tasks from general administration.

Acceptable wages

The acceptable wages correspond to the income of employment generally calculated under the terms of the Law on the taxes.

Particular requirements

To be entitled to the tax credit, your company must be approved, i.e. it must hold a certificate of admissibility delivered by Investissement Quebec.

To obtain this certificate, your company must in particular show that it will be able, within a reasonable time, to create the equivalent of at least three full-time employment in an establishment located in an acceptable area.

Your company must also obtain Quebec Investment an annual certificate of admissibility for its activities and an annual certificate of admissibility for its employees.

PERIOD Of ADMISSIBILITY AND DURATION

The tax credit can be claimed until December 31, 2009. The business activity approved in the acceptable area must begin at the latest during the calendar year 2007.

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