MFOR training grant for Quebec IT companies: funding your teams’ upskilling

Why technology businesses can qualify for the 75 % enhanced rate

The Workforce Training Measure (MFOR), business component, gives financial support to Quebec employers that invest in their staff’s skills. It is not an automatic tax deduction. It is a discretionary grant negotiated with the business advisor at the Services Québec office for your region.

For most professional or management training, assistance is generally up to 50 % of eligible costs. Section 2.6.1.8 of the Guide des mesures et des services d’emploi, however, provides an enhanced rate of 75 % on two grounds: the information technology (IT) sector, and training made necessary by new equipment or new technologies to raise productivity.

Fast-moving software architectures, cyber threats and automation require constant upskilling of technical teams. A technology SME that trains its engineers or analysts can have its training costs recognized at the 75 % rate.

Services Québec assistance is generally limited to $100,000 per agreement. Larger projects needing more support fall under large training projects (MFOR-E). The 75 % rate is a negotiating ceiling: the final amount depends on the strength of the plan and the funds available in your region for the fiscal year running from April 1 to March 31.

Eligible training: cloud, cybersecurity and artificial intelligence

To qualify for the 75 % enhanced rate, the training must meet the requirements of section 2.9 of the ministerial guide. It must be directly tied to the job held or to new responsibilities given to employees.

In the technology sector, projects can target four areas of specialized skills:

• Cloud computing and architecture: migrating infrastructure to AWS, Microsoft Azure or Google Cloud Platform, container management (Docker, Kubernetes) and serverless architectures.
• Operational cybersecurity: detecting and managing vulnerabilities, penetration testing, securing application environments and meeting strict data protection standards.
• Artificial intelligence and data science tools: integrating machine learning models, MLOps tooling, using generative language models and advanced data processing.
• Modern software practices: setting up continuous integration and deployment pipelines (CI/CD), moving to microservices and automating software testing.

The official guide sets strict rules on format. Training must follow a structured training plan with measurable learning objectives, a set schedule and an assessment that ends with a written certificate.

Several common workplace activities remain excluded under section 2.9.2. Services Québec does not fund symposiums, conventions, industry conferences and one-day seminars, which it considers too loosely structured to ensure lasting skills transfer. In our reading, informal tech watch and unsupervised self-learning are also unlikely to qualify; welcome activities are excluded by the guide.

Eligible costs and how wages are treated

Services Québec assistance applies to the eligible expenses accepted in the agreement (section 2.6.1.7). The table shows how costs are treated in a technology project:

The most important rule concerns the wages of workers in training. They are an eligible expense up to a reimbursable maximum of $25 an hour, excluding benefits, commissions and dividends, but they are not granted automatically: they depend on the advisor’s analysis, the orientations adopted and budget availability. Literacy projects at 100 % must include employee wages up to $25 an hour.

When a business uses an in-house software architect or senior developer to train colleagues, that person’s base wage for teaching hours is eligible at the 75 % rate, with no mark-up for profit or employer payroll charges.

Worked example for a technology business

Take a 32-employee IT services business in Quebec. To meet client requirements, it sets up a four-month upskilling plan in advanced cloud computing (Kubernetes and AWS) and AI tool integration for eight software engineers. The project combines a specialized external trainer and sessions led by an in-house software architect.

Out of a total budget of $67,800, the eligible costs accepted by Services Québec come to $21,000. At the 75 % enhanced rate, the non-repayable grant could reach $15,750.

The business is left with $52,050, mainly the paid time of its eight engineers during training ($46,800) and its 25 % share of training costs ($5,250). If the advisor accepted wages at the $25 an hour maximum (1,040 h × $25 = $26,000), eligible expenses would be $47,000 and the grant could reach $35,250. That expense is not granted automatically. The grant is paid when the file closes, on submission of paid invoices, signed attendance sheets and the certificates given to the eight employees. Test your own plan in the MFOR calculator.

Stacking with the CDAE, CDAEIA and R&D credits

Quebec software and IT services businesses often use other provincial tax measures. It is important to understand how the MFOR fits with the tax credit for the development of e-business (CDAE) and scientific research and experimental development (SR&ED) credits in Quebec.

Tax rules set one basic principle: the same expense cannot be funded twice with public money without an adjustment. A direct government grant received for a specific expense is “government assistance” that reduces the eligible expense claimed for a tax credit.

The main advantage of the MFOR is that the expense bases are naturally separate:

Keeping tax bases separate and internal trainers

If the wages of employees in training are not accepted in the MFOR agreement, the employer does not need to reduce the developer wage base claimed for the CDAE or CDAEIA on account of double funding. The training hours must still meet the basic eligibility criteria of the tax credit concerned, notably direct assignment to eligible design or integration work.

On the other hand, if an internal trainer’s wage was reimbursed at the 75 % enhanced rate by the MFOR, the subsidized portion is government assistance. It must be deducted from the wage costs claimed for the CDAE or SR&ED for the same hours. Clear separation between training invoices and payroll records is essential to protect your claims in an audit.

Common mistakes by technology businesses

In Services Québec’s review of technology files, several mistakes put the grant or its payment at risk:

1. Starting training before the agreement is signed: this is the most expensive error. The MFOR has no retroactive effect. Any invoice paid or course hour delivered before Services Québec signs the agreement is excluded from reimbursement.
2. Assuming developers’ wages will be covered: they are eligible up to a reimbursable maximum of $25 an hour, but not granted automatically. Build a budget that works without them.
3. Confusing training with tech watch: sending employees to international conferences, paying for generic video tutorial subscriptions without supervision or attending vendor webinars is not an eligible training plan under section 2.9.2.1 of the guide.
4. Including operating software or hardware: laptops, licences for an integrated development environment (IDE) or production cloud subscriptions are not accepted. Only temporary access used strictly for learning is allowed.
5. Neglecting reporting documents: final payment requires signed service contracts, detailed invoices, bank proof of payment, attendance sheets signed by each employee and the certificates issued at the end of training.

How we help with IT training projects

Canadian Funding Partners supports Quebec technology businesses in preparing their training files for Services Québec, around five priorities:

1. Review of the target skills (cloud, cybersecurity, artificial intelligence) and confirmation of fit with the 75 % enhanced rate.
2. A structured training plan that meets section 2.6.1.6 of the official guide, with learning objectives and assessment grids.
3. A budget that separates eligible training costs from excluded items, to speed up the business advisor’s review.
4. Coordination with your tax claims (CDAE and SR&ED in Quebec) to keep wage bases separate.
5. Follow-up until the agreement is signed, and support through reporting so the funds can be paid.

Regional rules for technology employers are covered on our Montreal and Capitale-Nationale pages, and the equipment rules on the MFOR for manufacturers.

What Canadian Funding Partners does

Canadian Funding Partners helps businesses identify relevant funding programs and coordinate their applications with specialized partner firms. Where a file needs accounting or engineering expertise, that work is done by qualified professionals at those firms. We do not administer the MFOR and do not represent Services Québec. We do not promise any financial result; grants remain at the discretion of public authorities. To review your training plan, book a free eligibility assessment.