Quebec Green, Clean Tech & Manufacturing Business Credits (2025)

Quebec has become a national leader in climate policy and clean technology innovation. Through aggressive greenhouse gas reduction targets, robust investment in renewable energy, and a thriving manufacturing sector, Quebec is strategically positioned to drive Canada’s low-carbon economic transition.

To accelerate this shift, Quebec offers a comprehensive suite of targeted tax credits, grants, and incentives for businesses making green, clean tech, and advanced manufacturing investments. These programs not only reduce the after-tax cost of sustainability projects, but also enable companies to stack provincial and federal incentives for maximum financial impact.

Whether you’re a manufacturer, clean technology developer, or commercial property owner, this guide covers all major Quebec business green incentives—detailing eligibility, step-by-step claim processes, calculation examples, and documentation tips. Real-world scenarios and audit best practices are included to help you avoid common errors and maximize your claims.

Who qualifies? Quebec-registered corporations making qualifying investments in green tech, energy efficiency, manufacturing, or clean energy.
What’s covered? Green investment tax credits, enhanced capital cost allowance (CCA) for clean assets, manufacturing/processing credits, energy efficiency grants, and more.

Quebec clean technology factory with solar panels and modern green manufacturing equipment

Key Quebec Green, Clean Tech & Manufacturing Incentives

1. Green Investment Tax Credit (Crédit d’impôt à l’investissement vert)

Eligibility: Quebec corporations making eligible investments in green technology, renewable energy projects, or qualifying equipment. To qualify, your business must be registered in Quebec, the asset must be new, and used primarily in Quebec for green/clean manufacturing or energy projects.
Step-by-Step Claim Instructions:
1. Before investing, consult Investissement Québec or Revenu Québec program guides to confirm the property/equipment is eligible.
2. Acquire the asset and retain invoices, technical specifications, and proof of installation/use in Quebec.
3. Some projects require pre-approval or registration (especially large projects or those in special sectors).
4. When filing your CO-17 (Quebec corporate tax return), complete Schedule 41 (or relevant schedule) and provide all supporting documentation.
5. Unused non-refundable credits may be carried forward (up to 20 years) or back (3 years).
Calculation Example: If your company invests $200,000 in eligible solar panel equipment at a 20% refundable credit rate, you would receive a $40,000 refundable tax credit, claimed on your Quebec tax return. The rate and maximum claim depend on sector and program specifics.
Documentation Requirements: Keep all purchase invoices, technical specs, contracts, asset registration, and proof of installation/use in Quebec. For pre-approval, retain all correspondence and final certificates.
Official Info: Investissement Québec

2. Enhanced Capital Cost Allowance (CCA)

Eligibility: Companies investing in eligible clean energy and manufacturing assets, such as solar, wind, geothermal, or advanced manufacturing equipment. Must be used at least 90% in qualifying activities in Quebec.
How to Claim: Claim accelerated depreciation (CCA Class 43.1/43.2) on both your federal and Quebec returns. The deduction allows you to write off a larger portion of the asset cost in the first year, improving cash flow.
Example: A $100,000 solar installation can be depreciated at up to 100% in the first year (if eligible), reducing taxable income by $100,000 for that year.
Documentation: Invoices, technical specs, CCA class confirmation, proof of use in Quebec, and depreciation schedules. Retain for at least 6 years.

3. Manufacturing and Processing Investment Tax Credit

Eligibility: Quebec corporations investing in new manufacturing, processing, or green equipment for use primarily in Quebec. The asset must be new and not for resale.
How to Claim: Complete the CO-1029.8.36.II or relevant schedule with your CO-17. Retain proof of purchase and use.
Calculation Example: If you acquire $500,000 in qualifying manufacturing equipment at a 10% refundable credit rate, you claim a $50,000 refundable credit.
Documentation: Purchase contracts, proof of use, technical specs, and supporting forms.

4. Electricity Discount & Energy Efficiency Grants

Eligibility: Large industrial/manufacturing projects, green retrofits, or businesses investing in energy efficiency/electrification (e.g., via Hydro-Québec or Investissement Québec).
How to Claim: Apply for program pre-approval, complete the project, submit invoices/technical specs, and receive rebates or discounted energy rates.
Example: A food processor receives a $20,000 energy efficiency grant for upgrading to high-efficiency refrigeration, and a 5% discount on Hydro-Québec rates for 5 years.
Documentation: Application forms, approval letters, energy audit reports, invoices, and follow-up verification.

5. Carbon Reduction and Clean Tech Innovation Programs

Eligibility: Quebec companies conducting R&D, pilot projects, or major carbon reduction initiatives. Often targeted to manufacturing, energy, waste, or transportation sectors.
How to Claim: Apply for specific grant or refundable credit programs, document project outcomes, and file via the CO-17 and supporting forms or online portals.
Example: A manufacturer launches a $300,000 pilot project to reduce GHGs and receives a 25% refundable tax credit ($75,000) on eligible project costs.
Documentation: Project proposal, progress reports, expenditure receipts, and final results.

Stacking Quebec & Federal Green Tech Credits

Quebec green/manufacturing credits can generally be stacked with federal incentives, such as the Clean Technology Investment Tax Credit (30%), Accelerated Investment Incentive, or federal grants.
Scenario: If you invest $100,000 in eligible green equipment, you might claim a $20,000 Quebec credit and a $30,000 federal credit, reducing your net cost to $50,000 (before CCA and other deductions).
Always deduct any non-taxable grants from your eligible expenditures before calculating credits.
File all relevant Quebec (CO-17, Sched 41, etc.) and federal (T2, Sched 31, etc.) forms, and retain all supporting documentation for at least 6 years.

Tip: Coordinate timing and documentation for both Quebec and federal claims. Consult a tax specialist for large projects or complex stacking scenarios.

FAQ, Case Studies & Practical Tips for Green/Manufacturing Claims

What documentation do I need to claim Quebec green/manufacturing credits?

You must keep all invoices, contracts, proof of payment, technical specifications, evidence of installation/use in Quebec, and any pre-approval certificates. For grants or electricity discounts, keep all approval letters and final reports.

Can I claim both a Quebec refundable credit and a federal grant on the same equipment?

Yes, but you must reduce your eligible Quebec credit claim by the amount of any non-taxable federal grant received. You cannot double-claim the same expenditure for two credits.

Case Study: Green Tech Stacking

Scenario: A Montreal manufacturer purchases $250,000 in new low-emission machinery. They claim a 15% Quebec refundable credit ($37,500) and a 30% federal Clean Tech ITC ($75,000). After both credits, their net cost is $137,500, plus they can claim accelerated CCA to further reduce taxable income.

How long do I have to claim carryforward credits?

Unused non-refundable Quebec investment/manufacturing credits can be carried forward up to 20 years, or back 3 years (check current legislation for confirmation).

Who can help with complex claims?

For large or complex projects, consult a tax specialist with Quebec and federal experience. Investissement Québec and Revenu Québec also offer guides and advisory services.

What are common audit risks and errors for green credit claims?

Claiming ineligible property (e.g., used or non-qualifying assets).
Improperly stacking provincial and federal credits without reducing cost base for grants.
Missing or incomplete documentation (invoices, technical specs, proof of installation/use).
Late or incorrect filings of Quebec (CO-17/Sched 41) or federal forms.
Failing to maintain evidence for the mandatory number of years (generally 6).

Best practices for documentation and claim success?

Start a digital project file for each asset/investment with all invoices, specs, and correspondence.
Retain confirmation of program eligibility before purchase, if required.
Ensure all supporting documents are available for at least 6 years and are accessible for audit.
Consult a tax advisor for claim timing and optimal stacking strategies.

Plan major equipment purchases to align with both Quebec and federal funding cycles.
Apply for pre-approval where possible to avoid denied claims.
Stack credits with energy efficiency grants for maximum impact.
Document project outcomes, especially for emission reduction or R&D claims.

More Quebec Business Tax Credit Resources

Quebec Business Tax Credits Directory – Full directory of corporate, innovation, green and hiring credits.
Quebec Small Business Deduction Guide – For reduced tax rate eligibility, claim process, and best practices.
Quebec R&D & Innovation Credits – In-depth coverage of scientific research, technology, and innovation tax incentives.
Quebec Multimedia, Game & Film Credits – For digital media, video game, film, and TV production credits.
Quebec Hiring & Training Incentives – For on-the-job training, workforce retention, and co-op credits.
Startup Tax Incentives – National and Quebec-specific programs.
Canada-Wide Business Tax Credits – For federal green, innovation, and manufacturing incentives.
BC Clean Tech, Green & Manufacturing Credits – For comparison with Quebec programs.
Manitoba Manufacturing & Processing Credits
Ontario Energy, Green & Manufacturing Credits