In a Presse+ feature on government assistance for Quebec businesses, Luc Lacombe, Tax Partner and Jean-Philippe Brosseau, Senior Manager, Management Consulting, helped demystify various types of assistance and their impacts. Luc Lacombe clarified the difference between a subsidy, a loan and a tax credit. He explained that a tax credit is, “like a subsidy, it’s an amount that’s paid to the organization, but via an existing structure, the tax return”.
The reporter ranked businesses’ government assistance preferences—subsidies are the most popular, followed by tax credits and loans. Investments are the least common option.
Jean-Philippe Brosseau stated: “The first two are interchangeable. The tax credit is more predictable, recurring and available to any business that satisfies the criteria. Subsidies are paid more quickly, but are more subjective.”
To find out more, read the article on Presse+ (in French).