In Short
Quebec corporations get 15–25% back on the cost of new manufacturing equipment above a $12,500 exclusion. On a $30,000 laser welder that's $2,625 to $4,375, depending on where you are. It's fully refundable, it's claimed on your regular corporate tax return, and we provide the paperwork. Keep reading to check if you qualify.
What is C3i?
Think of C3i as the Quebec government's way of saying "thanks for investing in local manufacturing." When you buy new equipment like a laser welder, they give you back 15–25% of the cost above the first $12,500. For a typical welder purchase, that's a few thousand dollars back in your pocket.
The Three Things You Need to Know
1. It's Actually Simple
No consultants, audits or pre-approvals. One form (CO-1029.8.36.II) goes in with your corporate tax return. Your accountant does this all the time.
2. You Get Real Money Back
This isn't a deduction – it's a refundable tax credit. Even if your company owes no tax, Revenu Québec sends you the money.
3. Most Incorporated Businesses Qualify
Jewellery repair shop, atelier, manufacturer, brand-new company – if you're a corporation with an establishment in Quebec and you're buying manufacturing equipment, you probably qualify. Not eligible: sole proprietorships, tax-exempt organizations (non-profits, most schools), Crown corporations, aluminum producers and oil refiners. Not sure? Ask your accountant.
Do You Qualify? (Probably yes)
Basic Requirements
Incorporated, with an establishment in Quebec
Buying new manufacturing or processing equipment
Equipment costs over $12,500 (the credit applies to the amount above that)
You keep it in use in Quebec, in your business, for at least 730 days
Your Rate Depends on Where the Machine Lives
| Where the equipment is used | Rate |
|---|---|
| Montréal or Québec City metropolitan communities | 15% |
| Everywhere else in Quebec | 20% |
| Designated low-vitality territories | 25% |
The official list of low-vitality territories is in the CO-1029.8.36.II form and guide (it was updated for purchases after June 30, 2025).
Example – $30,000 laser welder:
| Zone | Eligible cost | Credit |
|---|---|---|
| 15% | $17,500 | $2,625 |
| 20% | $17,500 | $3,500 |
| 25% | $17,500 | $4,375 |
Good to Know
• Applies to equipment acquired up to December 31, 2029.
• Works for businesses of all sizes – fully refundable since 2024.
• Lease-to-own (lease-acquisition) qualifies – your accountant attaches form CO-125.1.
• No application fee.
• Grants and other government assistance reduce the eligible cost; federal tax credits don't.
• Computers and ERP-type management software packages also qualify, with a lower $5,000 exclusion.
• You have until 12 months after your corporate return's due date to claim (roughly 18 months after year-end).
What's Not Covered
• Used or refurbished equipment.
• Equipment at or below $12,500 (nothing left after the exclusion).
• Furniture, vehicles and general office equipment (computers are the exception).
• Straight rentals and operating leases.
• Equipment bought from a related company or person.
• Equipment sold, or moved out of Quebec, within 730 days – the credit gets clawed back.
Avoid These Common Mistakes
Treating $12,500 as a minimum. It's an exclusion, deducted per machine. Two $10,000 machines = zero credit. One $20,000 system = credit on $7,500.
Missing the deadline. The claim goes in with your corporate return. You can file late, but only up to 12 months past the return's due date.
Thin records. Revenu Québec can ask for the invoice, the purchase contract, an equipment schedule and an org chart of your related companies. Keep them.
Selling too early. Two years minimum, or you pay it back.
Hiring a consultant. The form takes about an hour.
Counting the machine's software separately. The laser's control software is part of the machine's cost. Only standalone management software packages (ERP, CRM) get their own claim.
Making Your Claim: Step by Step
If You're a Stygvir Customer
When you purchase from us, you'll automatically receive all required documentation with your order. This includes:
- Detailed invoice with all required information.
- Pre-written workflow description for your equipment.
- Technical specifications document.
- Guide to filing your claim.
Your C3i Checklist
1. Gather Your Documents
- Official C3i form – CO-1029.8.36.II (download here).
- Form CO-125.1, only if you're leasing-to-own.
- Proof of purchase (commercial invoice).
- Purchase or lease contract.
- Delivery note (gives you the date the machine went into use – that starts the 730-day clock).
- An equipment schedule with: description, acquisition date, supplier, cost before taxes, payment dates, new or used, acquired or built, tax depreciation class, region where it's mainly used.
- Org chart of associated companies, if you have any.
Items 3–7 stay in your files – Revenu Québec asks for them only on request.
2. Complete the C3i Form
- Equipment description.
- Acquisition date and cost before taxes (from the invoice).
- Payment dates.
- Depreciation class (your accountant confirms this).
- Region where the equipment is mainly used (sets your rate).
- Company information.
3. Submit Your Claim
- Review everything with your accountant.
- They attach the form to your corporate return and enter credit code 109.
- The refund comes once the return is assessed.
Set Yourself Up for Success
Keep the delivery note and installation records – they prove when the 730 days started.
Take photos of the equipment in your facility.
Save digital copies of all paperwork.
Don't sell or relocate the machine for two years.
What Happens Next?
The credit is processed with your corporate tax return. It arrives as a refund or as a reduction in taxes owed – and because it's refundable, you get it even if you owe nothing. Revenu Québec doesn't publish a processing time; most companies see it within a few months of their return being assessed.
Not a Stygvir Customer Yet?
No problem! We've included a sample equipment usage letter template below that you can adapt for your needs. While we can't provide documentation for other manufacturers' equipment, you can use this as a starting point for your application.
Ready to Save?
Learn more about our laser welders and how much you could save with C3i.
While we help our customers with C3i documentation, Stygvir is not a tax consulting firm. We recommend working with your accountant for tax-specific advice.
