Value and rate of the tax holiday

Value of the tax holiday relating to the large investment project

The value of the maximum tax assistance is equal to the product obtained by multiplying the cumulative total eligible expenditures of the corporation or partnership by the rate of the new tax holiday applicable to it.

For the purposes of calculating the tax assistance:

• the total amount of eligible expenditures must be reduced by the amount of government and non‑government assistance received reduces the amount attributable to one or morean eligible expenditures;
• the cumulative total of eligible expenditures may not exceed $1 billion.

Tax holiday rate by territory

The rate of the new tax holiday available to a corporation or a partnership is established according to the territory where the large investment project is carried out. It is equal to one of the following rates:

• 15% if the large investment project is carried out in the metropolitan communities of Montréal or Québec city;
• 20% if the large investment project is carried out outside the metropolitan communities of Montréal and Québec city;
• 25% if the large investment project is carried out in a territory with low economic vitality.

The territories with low economic vitality are the following regional county municipalities (RCMs) and urban agglomerations:

• Antoine‑Labelle;
• Argenteuil;
• Avignon;
• Bonaventure;
• Charlevoix‑Est;
• La Haute‑Côte‑Nord;
• La Haute‑Gaspésie;
• La Matanie;
• La Matapédia;
• La Mitis;
• La Tuque;
• La Vallée‑de‑la‑Gatineau;
• Le Golfe‑du‑Saint‑Laurent;
• Le Rocher‑Percé;
• Les Appalaches;
• Les Basques;
• Les Etchemins;
• Les Sources;
• Maria‑Chapdelaine;
• Maskinongé;
• Matawinie;
• Mékinac;
• Papineau;
• Pontiac;
• Shawinigan;
• Témiscamingue;
• Témiscouata.

Please note: the RCMs of Argenteuil and Matawinie will be removed from this list as of July 1, 2025. The applicable rate for projects carried out in these RCMs will therefore be 20% if the exemption period begins after this date.

Special rules will be provided for determining the tax holiday rate when a project is to be carried out in more than one territory.

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