Quebec business tax credits: every credit on one page

Quebec tax credits at a glance

A tax credit pays back part of money you have already spent. You incur the costs, then claim the credit with Revenu Québec on your corporate income tax return (CO-17). For some credits, an Investissement Québec certificate must first confirm that the corporation, its employees or the project qualify.

Quebec credits sit on top of federal credits such as SR&ED, but they follow their own rules. This page brings together the main credits open to Quebec corporations and small businesses. For federal and other provincial credits, see our tax credits guide. For grants and loans, see Quebec business grants.

Quebec business tax credits compared

The rates in the table are the ones published on the official pages listed below. Full conditions, caps and exclusions are on each credit’s page.

What each credit covers

C3i: equipment and software

The C3i goes to a qualified corporation that acquires, after March 10, 2020 and before January 1, 2030, manufacturing or processing equipment, general-purpose electronic data processing equipment or qualifying management software. It is calculated on the part of the costs above $5,000 or $12,500 per property, depending on the type of property. The rate is 15%, 20% or 25% depending on the economic vitality of the region. Eligible costs are limited by a cumulative cap of $100 million calculated over four years.

The credit is fully refundable. For costs incurred in a year that began before January 1, 2024, the refundable portion depended on the corporation’s assets and gross revenue. Our C3i page covers eligible property and regions.

CRIC: research, innovation and pre-commercialization

The CRIC applies to tax years that began after March 25, 2025. It offers a refundable credit of 30% on eligible spending above the exclusion threshold, up to $1 million, then 20% on spending above that million.

Eligible spending includes employee salaries, 50% of amounts paid to a subcontractor for work done in Quebec, 50% of payments to an eligible public research centre, research consortium or university entity, and equipment acquisition costs. Buildings and land are excluded. The exclusion threshold is the greater of $50,000 or the total of the basic personal amount for each employee, adjusted for the time each spends on eligible activities. The corporation files form RD-1029.8.CR with its return. See our CRIC page.

The former R&D salary credit

For tax years beginning on or before March 25, 2025, the former R&D salary credit still applies: 14% base or 30% enhanced, refundable. Our SR&ED in Quebec page explains the move to the CRIC and how it interacts with the federal credit.

CDAE and CDAEIA: IT salaries

The CDAE equals 30% of eligible salary paid to eligible employees, in refundable and non-refundable portions: 23% refundable and 7% non-refundable for a fiscal year starting in 2025 (24% + 6% in 2024). The corporation must work mainly in computer systems design or software publishing at an establishment in Quebec, and must have kept at least six eligible full-time employees at all times.

At least 75% of its revenue must come from IT activities, with at least 50% tied to software development or publishing. Each eligible employee spends at least 75% of their duties on eligible work. For fiscal years starting after December 31, 2025, the CDAEIA replaces the CDAE. It targets corporations that integrate artificial intelligence features in a significant way and grants 30% of eligible salary above an exclusion threshold: 22% + 8% in 2026, 21% + 9% in 2027, 20% + 10% from 2028. The rate is cut in half in some non-arm’s-length cases. Investissement Québec issues the certificate. Our CDAE page covers the transition.

Gaspésie and certain maritime regions

This refundable credit is calculated on total eligible payroll. The rate is 30% for marine biotechnology, mariculture and recreational tourism, and 15% for other eligible sectors. It is available until December 31, 2030, and the recognized business must start operating in the eligible region by that date. Eligible salary is capped at $83,333 a year per employee, and the employee spends at least 75% of their time on tasks directly tied to eligible activities.

Multimedia title production

This credit can reach 37.5% of eligible labour expenditures, in refundable and non-refundable portions. The corporation first needs an initial eligibility certificate for the title, then an annual certificate for each fiscal year it claims. For tax years beginning after December 31, 2024, the $100,000 annual limit no longer applies to labour expenditures, but an annual exclusion threshold is subtracted from each employee’s eligible salary.

DICI: a deduction, not a credit

The DICI lowers the tax rate on income from commercializing qualifying intellectual property in Quebec. The corporation pays 2% on the eligible portion of that income, 9.5 percentage points below the general rate of 11.5%. It pays nothing out when the corporation has no taxable income, which is what sets it apart from a refundable credit.

Other Investissement Québec certificates

Investissement Québec also issues certificates for credits tied to print news media, the digital transformation of print media and news media. These target specific sectors and are not covered in detail here.

Credits that need a certificate before you claim

Some credits go through two bodies. Investissement Québec confirms eligibility, then Revenu Québec reviews the claim and grants the credit.

• CDAE and CDAEIA. The corporation must obtain a corporate certificate and an employee certificate every year. The certificate application goes to Investissement Québec within 15 months after fiscal year-end. Between 15 and 18 months, Investissement Québec may accept a late application with justified reasons; after 18 months it is refused.
• Gaspésie and certain maritime regions. An initial certificate (at least three full-time jobs planned), then each year a recognized business certificate and an employee certificate.
• Multimedia titles. An initial certificate for the title, then an annual certificate for the production work.

Investissement Québec says it does not pay out the credit and that its certificate does not secure the credit, which depends on Revenu Québec’s decision. It also charges fees to analyze eligibility applications.

The C3i and the CRIC do not need an Investissement Québec certificate. They are claimed directly with Revenu Québec on the CO-17 return with the prescribed form.

How these credits combine

With federal SR&ED

A corporation doing R&D in Quebec can claim the federal SR&ED credit and a Quebec credit. The two interact. Under the CRA’s policy, a provincial R&D credit is generally assistance that reduces federal qualified expenditures. Quebec is treated separately: the CRA says it considers only four specific Quebec R&D credits to be assistance. The CRA’s list covers the former credits; it does not yet address the CRIC. The CRA also notes that, except in Quebec, a claimant needs a permanent establishment in the province where the R&D is done to claim that province’s credit. Check how your credit is treated before you calculate the federal claim. Our SR&ED in Quebec page walks through the calculation.

With grants

For the CRIC, Québec.ca is specific: if a corporation receives financial assistance, government or not, for R&D or pre-commercialization expenses, that assistance is deducted from eligible expenses. A grant for the same project therefore reduces the credit.

Between Quebec credits

A corporation cannot benefit from both the CRIC and another Quebec tax credit for the same expense. It has to choose. Nothing stops one business from claiming several credits on separate expenses: the CRIC on R&D salaries, the C3i on a production machine, the CDAE on eligible IT salaries. Keep a clear record of each expense and the credit you assign it to.

With training

The 1% law requires some employers to invest in training, and MFOR can fund training tied to new equipment or software. These are separate from tax credits, and worth planning at the same time as a C3i purchase.

Common mistakes

• Claiming the CRIC and another Quebec credit on the same expense.
• Leaving out a grant received or expected for the same R&D project.
• Filing a CDAE claim before the Investissement Québec certificate is in hand, or missing the certificate deadline.
• Assuming every Quebec credit is fully refundable. The CDAE and the multimedia titles credit are only partly refundable.
• Treating the DICI as a credit. It lowers tax on qualifying income and pays nothing when there is no taxable income.

What to do first

1. List the year’s spending. Equipment and software, R&D salaries, IT salaries, subcontracting, and grants received or expected.
2. Assign each expense to one credit. That is the rule for the CRIC, and it keeps the same dollar from being counted twice.
3. Spot the certificates you need. If you are aiming for the CDAE, the CDAEIA, the maritime regions credit or the multimedia titles credit, plan the Investissement Québec application and its timelines.
4. Keep records current. Invoices, timesheets, job descriptions and project notes, kept while the work happens.
5. Claim on the CO-17. Attach each credit’s prescribed form to the return.

Our free assessment can show which credits and programs are worth reviewing for your business. Accounting and technical work goes to independent partner firms. An assessment does not guarantee any credit or funding and is not a tax opinion.

Canadian Funding Partners is an independent advisory firm, not affiliated with the Government of Quebec, Investissement Québec or Revenu Québec, and does not administer these programs. This page is general information, not tax or legal advice. Confirm current terms on the official pages.