Excavations Marchand – Court of Quebec finds that a construction company’s equipment used to provide concrete at a construction site qualified as for manufacturing goods for sale

A construction company contracted with Hydro-Quebec for the installation and operation of an on-site portable concrete-producing facility for the provision of the concrete in the installation of a large hydro-electric dam at a remote location. Trudel JCQ found that such contract should be characterized as for the manufacturing of goods (the concrete) for sale, rather than as a contract of service, given that the predominant intention was to provide for the supply of cement to Hydro-Quebec.

He further found that the exclusion from a manufacturing operation for “construction” did not apply given the distinctness and separation of this operation from the construction business of the company. Accordingly, an ice maker and silos used in the operation qualified as Class 29 property that was qualified property for Quebec investment tax credit purposes.

Neal Armstrong. Summaries of Excavations Marchand et Fils Inc. v. Agence du revenu du Québec, 2025 QCCQ 378 under Class 29 and Reg. 1104(9)(c).