Financial Assistance for Investment Program

The Financial Assistance for Investment Program enables businesses to reduce their electricity costs in their facilities.

It targets projects carried out in Québec in businesses:

• billed at Rate L;
  or
• served by Hydro-Québec’s off-grid systems, that is, businesses with annual contracts whose available power is at least 5 000 kilovolt-amperes.

The assistance is provided in the form of a reduction in the electricity bill. This allows for a reimbursement of up to 50% of the eligible costs, broken down as follows:

• 40% of capitalized eligible costs;
• an additional 10% if the project results in a 20% reduction in greenhouse gas (GHG) emissions.

The maximum reduction in the electricity bill is 20% for a period of:

• 4 years;
  or
• 8 years, in the case of an application concerning at least $250 million;
  or
• 4 years spread over a maximum period of 6 years, if the business has successfully demonstrated to the Ministère des Finances, before January 1, 2023, that the project’s completion has been impacted by the health crisis.

The eligible amount is calculated based on the investments made. If this amount exceeds 20% of electricity costs, the excess can be carried forward to subsequent years.

Calculation examples

Case 1
Annual electricity costs: $12 million
Eligible costs: $5 million
Total potential assistance: 40% of eligible costs, i.e., $2 million
The assistance corresponds to 20% of the electricity bill for 10 months.

Case 2
Annual electricity costs: $12 million
Eligible costs: $60 million
Total assistance: $9.6 million
The assistance corresponds to 20% of the electricity bill for 48 months.

A bonus may be granted for investment projects that permanently reduce GHG emissions intensity.

This bonus can be up to 10% of eligible investments if the project reduces emissions by 20%. If the reduction is lower, the assistance is adjusted proportionally.

The bonus is applied once the reduction is verified.

To be eligible for the bonus, the business must:

• report its GHG emissions before and after the project;
• have emission reductions verified by the Ministère de l’Environnement, de la Lutte contre les changements climatiques, de la Faune et des Parcs;
• calculate emissions using the official methods set out in specific regulations.

When a business reports its emissions, it may be required:

• that the data be certified by a member of the Ordre des ingénieurs du Québec;
  or
• that the business agree to an on-site inspection.

The eligibility application for a project currently underway must be submitted no later than the last day of the calendar year in which the project began.

In the case of new businesses or new establishments, they must have entered into a supply agreement with Hydro‑Québec before January 1, 2024:

• to be billed at Rate L;
• to be served by an off‑grid system with an available power of at least 5 000 kilovolt-amperes.

To obtain an eligibility certificate, businesses must submit a detailed investment plan and show that each of their projects aims to:

• enhance productivity;
• modernize processes or energy efficiency;
• adapt or increase output according to market needs;
• launch new production.

Businesses must also demonstrate, for each of their projects:

• technical and financial feasibility;
• economic potential in terms of enhancing productivity or increasing output;
• potential for reducing GHG emissions intensity, where applicable.

Other specific points:

• An eligibility application may combine several investment projects.
• The total planned investments in the application must meet the minimum investment threshold.
• There is no limit to the number of eligibility applications per business.

Where applicable, businesses must demonstrate, at the time of filing the eligibility application, the potential for reducing the GHG emissions intensity of their project.

The following forms are available in French.

Eligible investment expenditures are the amounts incurred as of January 1 of the year in which the application was received ^{Read the content of the note 1} , that:

• give rise to a capital cost allowance;
  and
• are capitalized before January 1, 2026.

Expenditures related to the following items are not eligible:

• contingency funds;
• asset maintenance (current expenditures);
• audit reports on investments made;
• audit reports on GHG emissions intensity reduction;
• land purchases.

The total planned investments must meet the minimum investment threshold that corresponds to the lesser of the following two amounts:

• 40% of the annual electricity cost of all establishments:
  • billed at Rate L;
  • with annual contracts whose available power is at least 5 000 kilovolt-amperes;
• $40M.

The investment threshold is determined based on:

• the invoices for the 12 months preceding the application;
  or
• the cost estimated by Hydro‑Québec for businesses that have purchased electricity for less than 12 months.

Businesses will be required to file audited reports with the Ministère des Finances by December 31, 2026 on the capitalized costs of eligible projects whose investment reaches the minimum threshold.

Complete the form that corresponds to your business’s situation. Select the English courtesy version to help you fill out forms. Please note that only the French forms will be accepted.

To benefit from the electricity discount related to a verified application, the business must follow a verification process, that is, it must hire an external accountant as an auditor to prepare the following documents, for which the business will bear the costs.

The business must submit an investment project follow-up document with each audited report. The auditor must review the capitalized costs during the period indicated in the project follow-up document.

If investments are made in other currencies, the conversion to Canadian dollars must be presented in an appendix to the follow-up document.

Once the application’s eligibility is confirmed, the business may submit an initial report on capitalized costs confirming the completion of the investments stipulated in the investment plan. Subsequent audited reports may be submitted when the business deems it appropriate, but no later than December 31, 2026.

The business must, upon request, provide a final document to demonstrate that its project is completed and that it meets the program’s objectives.

The discount will be applied to the second electricity bill issued after the first audited report is submitted. For instance, a business filing an audited report in September will receive the discount on its November bill that covers its consumption for October.

The discount is applied to the following rate component of the business:

• the component corresponding to Rate L;
• the main component of the electricity bill.

Other consumption-related rates, such as those for interruptible or additional electricity, are not taken into account.

If a business wishes to postpone the entry into force of the discount, it must have indicated the desired date when filing the audited report.

Eligible electricity bills must have been issued between January 1, 2017, and December 31, 2032.

If multiple reports are filed and more than one financial assistance becomes due at the same moment, the assistance will be applied one after the other, in the order the reports are received.

The business must file an audited report before the end of the initial 48 months and no later than December 31, 2026, to extend its discount application period to 96 months.

This report must demonstrate the presence of eligible capitalized costs of at least $250M.

If this report is not filed on time, the assistance will be suspended as of the 49^th month until it is filed. The suspension of assistance does not cancel the period during which financial assistance is payable: the business can still receive the assistance once the report is filed.

The maximum reduction corresponds to 20% of an establishment’s electricity bill.

If the amount of the eligible reimbursement for a given year exceeds this limit, the surplus may be carried over to subsequent years.

The business can choose the establishment to which the reduction will apply. Hydro-Québec determines the establishment where the final portion of the financial assistance will be applied unless the business advises otherwise.

Even if a business already receives other forms of government financial assistance, it can benefit from this reduction in electricity costs.

The reduction does not apply to the large-power options of Hydro-Québec’s electricity rates for its electricity distribution activities, such as the Economic Development Rate.

It also does not apply to establishments benefiting from a special contract.

If the eligibility requirements are not met, the government may recover any overpayments.

A recovery notice in the name of the Minister of Finance is then sent to the business. This notice:

• requires payment by cheque or bank transfer of the amounts dye within 60 days;
  or
• informs the business that the amount will be deducted from future payments.

In some cases, the government may accept a repayment agreement covering a period not exceeding that during which the financial assistance was granted. For example, if you received assistance for 3 years, you could have up to 3 years to repay it, depending on the agreement reached.

• Application period: September 30, 2016 to December 31, 2023
• Period for the completion of qualifying investments: March 18, 2016 to December 31, 2025
• Application period of financial assistance: January 1, 2017 to December 31, 2032
• Deadline for filing an audited report: December 31, 2026