TAX CREDITS: ARE YOU LEAVING MONEY ON THE TABLE?

Fast-growing startups are constantly looking for ways to optimize their financing. Yet many entrepreneurs are unaware that they could recoup tens, even hundreds of thousands of dollars through tax credits.
Poorly exploited or misunderstood, these financial levers often remain under-utilized. Is this the case for you?

What tax credits are available for innovative startups?

In Quebec and Canada, several programs are designed to encourage innovation and support young companies:

1. 1. Scientific Research and Experimental Development (SR&ED) tax credit
    – Reimburses up to 64% of eligible salaries as a refundable credit for SMEs.
    – Also covers materials, subcontracting and certain indirect costs related to R&D.

Tax credit for the development of e-business (CDAE)
– Specific to IT companies in Quebec.
– Can cover 30% of eligible salaries, up to $25,000 per employee.

Tax credit for the production of multimedia titles
– Intended for video game, digital entertainment and educational software companies.
– Subsidizes 37.5% of eligible production costs.

Tax credit for the hiring of trainees*.
– Up to $24,000 in tax credits per intern for companies hiring students in fields related to new technologies and science.

These credits can provide major financial leverage to extend your runway and accelerate your growth.

What are the tax credits beyond tech and R&D?
Not a technology company? Here are some other tax credits you could take advantage of:

Tax credit for innovative manufacturing companies
– For manufacturing SMEs investing in advanced production equipment.
– Allows you to recover up to 20% of the cost of purchasing new equipment.

Design tax credit
– Helps manufacturing companies that hire industrial designers to improve their products.
– Covers 15% of the designer’s salary, up to a maximum of $40,000 per year.

Real estate investment tax credit
– For companies building or renovating buildings for commercial or industrial use.
– Can represent a significant reimbursement of construction costs.

Export tax credit
– Helps SMEs break into new international markets.
– Can cover up to 30% of eligible export development expenses, such as trade shows or international marketing.

Tax credit for eco-responsible businesses

– Encourages companies to reduce their carbon footprint by subsidizing the purchase of energy-efficient equipment.
– Can represent 25% to 40% of investments, depending on the sector.

Why are startups missing out on these opportunities?Access to tax credits is not always straightforward:
– Complex applications: tax rules are fussy and require rigorous documentation.
– Long delays in obtaining refunds: Waiting several months before seeing the money can stunt your growth.
– Insufficient and untrained internal resources: A startup in the seed phase often has neither the time nor the expertise to optimize its claims.

How can you optimize your tax credits without slowing down your expansion?
That’s where solutions like advance financing of tax credits come in.
At AQC Capital, we give our startups faster access to these funds through our partnership with Finalta Capital.

💡 How does it work?
– Rather than waiting for a refund from CRA or Revenu Québec, you can monetize your tax credits immediately.
– These funds can then be reinvested in hiring, R&D or business expansion.
– You maintain your financial agility while maximizing your tax benefits.

Don’t leave money on the table

Optimizing tax credits can transform your company’s trajectory, providing the financial oxygen it needs to grow faster. With the recent election of Donald Trump, significant changes in U.S. tax and trade policies could impact the Canadian economy.

In this uncertain environment, the adaptability of entrepreneurs and their ability to see opportunities when many see threats will be essential, as tax credits will depend on political and economic developments.

If you’re not sure where to start, contact us now.
Our team and network of specialist partners can help you through the process, and help you navigate this changing landscape. That’s what we’re here for, among other things.

🚀 And you, are you taking full advantage of tax credits? If not, AQC Capital’s team and partners, including Anges Québec, MNP and Finalta Capital, can help you see more clearly.

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