Sustainable industrial buildings subsidy

Last updated June 7, 2023

The Sustainable Industrial Buildings Program offers a subsidy equivalent to the increase in the property tax for businesses that carry out construction or renovation work while adhering to sustainable development principles.

Current

Description

The Sustainable Industrial Buildings Program is an important component of the “Geared Up for Tomorrow” 2018-2022 Economic Development Strategy, particularly the “Building Montréal” Action Plan for the Economic Development of the Territory, both of which were adopted in 2018. 

The Sustainable Industrial Buildings Program is an incentive program that provides subsidies equal to the general property tax increase resulting from construction, expansion, renovation or demolition-reconstruction work that meets certain sustainable development benchmarks.

This subsidy is offered to owners of buildings used for specific economic activities in the agglomeration of Montréal. 

Through the Sustainable Industrial Buildings Program, Montréal is earmarking $59.7 million over 13 years for the development of industrial areas.

Objectives

  • Promote real-estate investment, particularly at the industrial level.
  • Maintain a diversified economic structure.
  • Improve Montréal’s competitiveness.
  • Enhance or convert the industrial built environment.
  • Prioritize high-potential economic sectors.
  • Help expand the tax base of the agglomeration.
  • Support sustainable investment projects in identified economic centres, particularly high-potential sectors
  • Better integrate the concept of sustainable development into Montréal’s economic development
  • Accelerate the return of the manufacturing sector on the island of Montréal in a more innovative form
  • Encourage investment in innovative and sustainable initiatives.

Duration of the program

End of the program eligibility period: December 31, 2024.

Eligibility

The subsidy will be granted if the building meets certain conditions and if it is used solely for certain activities.

Conditions 

  • New buildings must meet one of the following conditions:
    • Obtain LEED certification
    • Obtain Living Building Challenge certification
    • Obtain BREEAM certification
    • Obtain HQE certification
    • Obtain Passive House certification
    • Obtain Zero Carbon Building certification
    • Meet building code requirements for wood-frame structure

Existing buildings must meet one of the following conditions:

  • Obtain BOMA BEST certification
  • Meet one of the required conditions for a new building

Target economic activities:

  • Manufacturing in general
  • Aircraft maintenance, repair and servicing
  • Film, video and audio recording production
  • Architecture, engineering and testing laboratories
  • Specialized design services
  • Computer system design and related services
  • Off-the-shelf software publishing
  • Data processing and hosting
  • Environmental consulting services
  • Physical science, engineering and life sciences research and development
  • Head offices and regional offices
  • Rooftop greenhouses
  • Value-added logistics
  • Agriculture and farming inside a building

Submitting an application

Property owners who are interested in the Sustainable Industrial Buildings Program can submit their application by email to [email protected] by attaching the application form and all required documents.

  • Application form
  • Proof of property ownership or signed purchase offer
  • Application for an alteration or construction permit



They can also contact the economic development commissioner in their borough or their local PME MTL representative. These professionals can help owners carry out projects and navigate the steps required to obtain a subsidy. Once the application has been approved, owners have three years to complete the work.

Financial assistance

The main subsidy will be paid to the owner of the industrial building as follows:

  • 100 per cent of the general property tax increase resulting from carrying out eligible work for the first three years
  • 80 per cent of the general property tax increase resulting from carrying out eligible work for the fourth year
  • 60 per cent of the general property tax increase resulting from carrying out eligible work for the fifth year

An additional subsidy may increase payments to 100 per cent of the general property tax increase for the fourth and fifth years if the building:

An additional subsidy may increase payments to 100 per cent of the general property tax increase for the fourth and fifth years if the building:

  • Obtains Zero Carbon Building certification

or

  • Is located in a key geographical sector established in the Action Plan for the Economic Development of the Territory.

    The subsidy has an annual cap of $1,000,000.