Mixed outcomes for Pharma in Canadian Province Quebec's 2012-13 budget proposals

In Canada last week, Nicolas Marceau, Quebec Minister of Finance, tabled his government’s first budget, with some significant measures directed as the biotech and pharmaceutical industry. Most of these measures must be enacted by the National Assembly before coming into force.

The Quebec government proposes to temporarily increase the refundable tax credit for R&D salary in relation to biopharmaceutical activities for five years. The tax legislation will be amended so that an eligible biopharmaceutical corporation that until now received a refundable tax credit for R&D salary equal to 17.5% of its eligible R&D expenses will in future receive the credit at a rate of 27.5% for its expenses incurred after November 20, 2012 and before January 1, 2018.

Funding of $125 million will also be put in place for research partnership projects with pharmaceutical companies. Proposals will be sought to identify eligible projects, but projects will have to attract funding from at least one private partner. The details of this measure will be announced at a later date.