Québec Budget 2020-2021

Aéro Montréal applauds the government's green shift and commitment to productivity: Key issues for the aerospace industry

QUÉBEC CITY, March 10, 2020 /CNW Telbec/ - Aéro Montréal welcomes the government's commitment to support the productivity and competitiveness of Québec companies and applauds measures that will help, starting immediately, to create an environment conducive to investment, innovation and a stronger, green economy.

Supporting the competitiveness of companies
With 75% of Québec companies deemed to have a low level of technological maturity, the government plans to introduce a tax credit for investment and innovation. By introducing a tax measure of nearly $526 million over five years, it is confirming its intention to support companies in the digital shift, to promote the modernization of manufacturing equipment, and to increase the use of automated processes. Close to 10,000 companies may benefit from this initiative.

To encourage the commercialization of Québec innovations, enhance the competitiveness of companies and enable them to stand out on the international stage, the government announced the introduction of the incentive deduction for the commercialization of innovations (IDCI). Over the next five years, the financial impact of this measure would be $91.8 million.

The government is also underscoring its desire to support the development of innovative Québec SMEs by proposing a capital synergy tax credit aimed at encouraging established businesses to invest in the capital stock of local SMEs.

Building a green economy
By committing up to $6.7 billion over six years, the government is also confirming its willingness to place the fight against climate change at the heart of its priorities. In particular, $1.3 billion will be allocated to promote the decarbonization of businesses while ensuring their competitiveness. Eager to take part in this green shift and reduce its environmental footprint, the aerospace industry emphasizes the strength of these flagship measures, which will undoubtedly contribute to building a green economy and accelerating the industrial sector's energy transition.

"In the face of the labour scarcity challenge currently affecting the aerospace industry, Aéro Montréal applauds the fiscal measures planned to improve the productivity of Québec businesses," said Suzanne M. Benoît, President of Aéro Montréal. "By placing the fight against climate change at the heart of its concerns, the government is also underscoring its desire to make Québec a leader in innovation and encouraging the aerospace industry to multiply its efforts to be a key player in this energy transition and contribute to a green economy."

About Aéro Montréal
Created in 2006, Aéro Montréal is a strategic think tank that groups all major decision makers in Québec's aerospace sector, including companies, educational and research institutions, as well as associations and unions.

The activities of Aéro Montréal are made possible thanks to the participation of the governments of Québec and Canada, the Montréal Metropolitan Community, as well as company members of the cluster.

SOURCE Aéro Montréal