Funding and Opportunities for Businesses

On March 25, 2025, Quebec’s Finance Minister Eric Girard unveiled the province’s budget for the 2025–2026 fiscal year. The new budget, titled “For a Strong Québec,” addresses the economic challenges posed by recent U.S. tariffs and outlines significant investments in key sectors, including health, education, and business innovation.

For businesses operating in Quebec, the budget introduces government funding opportunities and tax measures aimed at fostering growth and resilience in a shifting economic landscape.

Addressing Economic Challenges Through Deficit

Quebec’s 2025 budget projects a historic deficit of $13.6 billion, attributed primarily to the economic impact of U.S. tariffs. These tariffs are anticipated to reduce Quebec’s economic growth by 0.7 percentage points over 2025 and 2026, potentially resulting in approximately 25,000 fewer jobs.

Despite these challenges, the government remains committed to restoring fiscal balance by 2029–2030, emphasizing strategic investments to stimulate economic activity and support key sectors.

“We need to realize we are in the context of great uncertainty and the government has to concentrate on the economy at the same time as protecting public services.”
– Eric Girard, Finance Minister

A Boost for Innovation and Commercialization

Central to Quebec’s strategy is the new refundable tax credit (CRIC) for research & development (R&D), innovation, and commercialization, which merges eight previous tax measures into a streamlined incentive valued at $271.5 million over five years.

The CRIC offers a higher basic tax credit rate and extends eligibility to certain capital expenditures, aiming to maximize R&D investments.

The government also announced $194 million over five years to boost innovation in strategic sectors such as artificial intelligence, quantum technologies, and life sciences. This funding will support the development of the Technum Québec innovation zone ($100.7 million), renewal of the Québec Life Sciences Strategy ($54 million), corporate research and innovation in priority sectors ($15 million), continued support for Mila ($22 million), and renewal of activities at Finance Montréal ($2.3 million).

Funding for Infrastructure and Workforce Development

In response to the economic uncertainty, the budget allocates government funding to accelerate major infrastructure projects, including those in education, healthcare, and transportation. These investments are designed to stimulate economic growth and create employment opportunities. They include key factors such as the following:

• The Quebec Infrastructure Plan (QIP) 2025-2035 has been increased to $164 billion, representing a $11 billion raise, with approximately $14.3 billion planned specifically for 2025–2026.
• Hydro-Québec is slated to invest between $135–$160 billion by 2035 to support the province’s clean energy ambitions.
• The Green Economy Plan 2030, totaling $10.2 billion from 2025–2030, aims for a 37.5% reduction in greenhouse gas emissions compared to 1990 levels.
• The relaunch of the Roulez vert EV rebate program, climate adaptation measures totaling $95.7 million over five years.
• Significant investments in biodiversity and sustainable development ($332 million over five years).

Additionally, the government is investing in workforce development programs to enhance skills training and address labor market needs, ensuring that Quebec’s workforce remains competitive in a rapidly evolving economy.

This includes targeted funding towards vocational and technical training programs, apprenticeships, and specialized skills development in high-demand sectors such as technology, healthcare, and renewable energy. Specific initiatives aim to bridge the skills gap, particularly in regions affected by economic disruptions and shifting industry dynamics. By aligning training programs with current and future labor market needs, Quebec is proactively preparing its workforce to drive economic growth and innovation.

Funding Support for Other Key Sectors

In the Quebec Budget 2025, the government has allocated targeted funding to support key sectors, including agriculture, tourism, and arts and culture, to stimulate economic growth and enrich the province’s cultural landscape.

Agriculture and Bio-food Sector Support

The Ministry of Agriculture, Fisheries and Food (MAPAQ) has received confirmation that they will have allocated funding from the new budget, focusing on initiatives that enhance the competitiveness and sustainability of Quebec’s bio-food sector, including:

• $20 million for the 2020–2030 Sustainable Agriculture Plan
• $16.1 million for the 2025–2035 bio-food policy
• $2 million for funding the Sustainable Growth Investment Program

Tourism Industry Investments

Tourism will be a key sector in supporting the resilience of the province’s economy in the current climate of uncertainty. For this reason, the Quebec Budget 2025–2026 is setting aside $138.0 million over five years, aiming to support festivals and tourism events, invest in tourist attractions, and extend agreements with tourism partners.

Additionally, to bolster Quebec’s tourism industry, the federal government announced the Tourism Growth Program (TGP) with a budget of $21.1 million in funding support. This program aims to help communities seize economic development and diversification opportunities, with a priority to showcase Indigenous tourism initiatives, dedicating 15% of its total budget to this sector.

Arts and Culture Funding

Artists, organizations, and businesses active in the cultural sector are key to the preservation and promotion of Québec’s culture and identity. Through their commitment, they not only ensure the vitality and future of Québec’s culture but also play a part in forging Québec’s identity.

Budget 2025–2026 commits nearly $717 million over five years to support and showcase Québec’s culture and heritage. Of this, over $544 million is specifically dedicated to increasing funding for the Conseil des arts et des lettres du Québec ($317.9 million), continuing to support cultural businesses through the Société de développement des entreprises culturelles (SODEC) ($164.2 million), supporting service organizations ($16 million), preserving cultural heritage ($33.9 million), supporting the digital shift of print media and Télé-Québec ($7.4 million), and increasing funding for the Mécénat Placements Culture program ($5 million).

Additionally, nearly $173 million will be directed towards promoting Québec’s identity, particularly by supporting the French language.

Building Resilience and Market Diversification

Quebec’s budget outlines a comprehensive approach to stimulating the provincial economy with an allocation of $5.4 billion over five years to support struggling businesses, diversify markets, and promote Quebec products. Specific funding ($759 million) is directed towards strengthening regional economies, including support for critical and strategic minerals, forestry, tourism, and bio-food sectors.

Digital transformation is also prioritized, with investments of $73.8 million for automating government processes, enhancing digital governance ($6 million), and improving digital connectivity, especially in rural areas ($74.1 million).

In summary, Quebec’s 2025 budget strategically balances short-term economic support with long-term investments in innovation and infrastructure, laying a solid foundation for businesses to thrive amidst global economic headwinds.