Quebec Budget 2025-2026: Supporting Innovation to Boost Competitiveness

MONTREAL, March 25, 2025 /CNW/ - Aéro Montréal acknowledges the Quebec 2025-2026 budget presented today by the Quebec government and commends the efforts made to support businesses in a global environment marked by commercial uncertainties. The introduction of the new innovation tax assistance regime will provide stability and contribute to business productivity, enabling them to stand out in a competitive environment. However, Aéro Montréal regrets the absence of measures related to the retention of strategic jobs.  

A Manufacturing Sector Confronted with Tariff Challenges

Quebec's aerospace industry, deeply integrated into North American supply chains, is facing increasing challenges related to trade relations with the United States. "Aéro Montréal applauds the government's efforts to help businesses in a context where U.S. tariff policies are evolving rapidly. The cluster stands ready to collaborate with the government to adapt the proposed measures to an industry that will need support to navigate this complexity and maintain its competitiveness," said Mélanie Lussier, President and CEO of Aéro Montréal.

Key Highlights from the 2025-2026 Budget:

• $4.1B to strengthen the competitive position of our businesses,

• • Financial assistance in the form of loans for businesses facing liquidity issues, support for exporting businesses through Revenu Québec, and extension of accelerated depreciation measures
  • Support for business projects, with $900M over 3 years to support projects that foster automation, robotics, digital transformation, and the integration of artificial intelligence
  • Continuation of the Digital Transformation Offensive and support for businesses in their efforts to increase productivity with $14M over 3 years
  • Support for export projects with $15.8M over 2 years and representation of Quebec abroad with $30M over 5 years

• $604.1M to increase our innovation capacity by stimulating innovation and its commercialization

• • Creation of a new optimized innovation tax assistance regime (additional financial support totaling $271.5M over 5 years), through a new enhanced and improved tax credit, the Credit for Research, Innovation, and Commercialization (CRIC)
  • Support for collaborative research and technology transfer and accelerating the adoption of cutting-edge technologies by businesses, notably in aerospace, with $15M over 3 years

• $42.3M over 3 years to support high-potential SMEs:

• • Implementation of the PME 2025-2028 Plan, aimed at helping businesses from all regions of Quebec access the services and support they need to ensure their development and growth

Innovation at the Heart of the Sector's Competitiveness: A New Tax Framework

The 2025-2026 budget notably emphasizes the simplification of the innovation tax assistance regime through the introduction of the Credit for Research, Innovation, and Commercialization (CRIC). "Innovation is the key lever to address competitiveness challenges and is at the heart of our sector: Quebec is home to nearly 70% of aerospace research and development in Canada. This new expanded and enhanced tax framework is a step in the right direction to encourage differentiation of our members on the international stage," emphasizes the CEO of Aéro Montréal.

Predictability in Labor Policies: An Urgency for Our Industry

However, Aéro Montréal highlights the crucial importance of predictability regarding access to skilled labor. Aéro Montréal expresses concern about the labor shortage that continues to severely affect the sector.

Faced with the dual threat of U.S. tariff policies and a persistent shortage of skilled labor, Aéro Montréal reiterates its request for a moratorium on restrictions imposed on the Temporary Foreign Worker Program (TFWP) since the fall of 2024. As the largest manufacturing industry in Quebec with 41,700 jobs and an estimated need for 41,500 new talents over the next decade, the aerospace sector cannot afford to lose its highly skilled foreign workers. "We wish to work closely with the government to develop concrete solutions that will attract, train, and retain the talent our industry desperately needs to maintain its position as a global leader."

About Aéro Montréal

Founded in 2006, Aéro Montréal is a strategic forum that brings together leaders from Quebec's aerospace sector, including industry, educational institutions, research centers, as well as associations and unions. Aéro Montréal's activities are made possible thanks to the participation of the governments of Canada, Quebec, and the Montreal Metropolitan Community, as well as member companies from the cluster.

SOURCE Aéro Montréal