Creation of two new biotechnology development centres

The government is immediately creating two biotechnology development centres, one in Sherbrooke and the other in Saint-Hyacinthe.

• In Sherbrooke, biotech companies will specialize, in particular, in the genomics, proteomics and biopharmaceutical sectors.
• In Saint-Hyacinthe, research will be conducted in the agri-food, agro-environmental and veterinary medicine sectors.

Companies that set up business and develop innovative projects in these biotechnology development centres will be eligible for the following substantial tax benefits:

• a refundable tax credit of 40% on the wages paid to eligible employees, up to a maximum of $15 000 for a period not exceeding ten years;
• a tax holiday with respect to income tax, the tax on capital and the employer contribution to the Health Services Fund (HSF), valid for a period of five years;
• a refundable tax credit of 40% on the costs of acquiring or leasing eligible specialized equipment, valid for the first three years;
• a refundable tax credit of 40% on the costs of using eligible specialized facilities on a short-term basis, valid for the first five years.

Additional tax assistance to foster the development of manufacturing and commercialization activities in the biotechnology sector.

Companies that set up business in zones to be designated at a later date will be eligible for a refundable tax credit of 40% with respect to the increase in payroll attributable to employees who carry out manufacturing and commercialization activities in the biotechnology sector, for a period of three years.