How to Apply to the Research, Innovation and Commercialization Tax Credit (CRIC)

The Research, Innovation and Commercialization Tax Credit (CRIC) is Quebec’s new refundable corporate tax credit that supports eligible research and development (R&D) and pre‑commercialization activities. It applies to taxation years beginning after March 25, 2025 and is claimed by filing the prescribed form with your Quebec corporate income tax return. This guide explains how to apply for CRIC, from eligibility and documentation to the step‑by‑step filing process.

CRIC offers a 30% refundable rate on the first $1,000,000 of eligible expenditures that exceed the exclusion threshold, and 20% on the remainder. Eligible costs include employee salaries, 50% of Quebec subcontractor costs, 50% of payments to eligible public research organizations and certain equipment acquisitions (excluding real estate). Below, you’ll find a clear process to prepare a compliant, audit‑ready claim.

Overview of the CRIC (Quebec R&D and pre‑commercialization tax credit)

CRIC is a provincial refundable tax credit for corporations operating in Quebec that carry out eligible R&D or pre‑commercialization activities in Quebec, or have them carried out on their behalf under contract in Quebec. It harmonizes the definition of R&D with the federal SR&ED framework, and the Canada Revenue Agency (CRA) performs the scientific review of R&D work. Pre‑commercialization activities can include regulatory testing and validation to obtain approvals, as well as industrial/product design, provided they are in continuity with R&D performed in Quebec by or for the corporation.

Key program highlights:

• Applies to taxation years beginning after March 25, 2025

• Refundable tax credit claimed with the corporate tax return using form RD‑1029.8.CR

• 30% refundable rate on the first $1M of eligible expenditures above the exclusion threshold

• 20% refundable rate on eligible expenditures exceeding $1M

• Exclusion threshold: the greater of $50,000 or a computed employee‑based amount

• Stacking rules: other assistance must be netted; no double‑claim with another Quebec credit on the same expense

• Real estate acquisitions (buildings, land, rights of use) are not eligible

Eligibility Requirements

To be eligible to apply for the CRIC, your corporation must meet the following criteria:

• Corporate status and presence in Quebec

• Operate a business in Quebec during the relevant taxation year

• File a Quebec corporate income tax return for that year

• Timing

• Taxation year begins after March 25, 2025

• Location of activities

• Conduct eligible R&D and/or pre‑commercialization activities in Quebec; or

• Have the activities carried out on your behalf in Quebec under a contract

• Nature of activities

• R&D activities must fit the harmonized definition with SR&ED (basic research, applied research, or experimental development aimed at advancing science or technology)

• Pre‑commercialization activities eligible for CRIC include:

• Tests, technological validations, and studies performed to meet regulatory requirements and obtain pre‑market approval or certification

• Product design work to develop form and aesthetics, improve functionality, and select materials

• Pre‑commercialization activities must be in continuity with R&D work performed in Quebec by or for the corporation

• Eligible expenditures (incurred in Quebec by or for the corporation)

• Salaries and wages of employees engaged in eligible activities

• 50% of amounts paid to Quebec subcontractors under eligible contracts

• 50% of payments to eligible public research centres, research consortia, or university entities

• Certain equipment acquisitions directly tied to eligible activities (excluding buildings, land, or rights to use real estate)

• Stacking and mutual exclusivity

• All assistance (governmental or otherwise) attributable to the same expenditures must be deducted

• You cannot claim CRIC and another Quebec tax credit on the same expense (for example, the C3i credit on equipment) — you must choose

• If you hold an initial certificate under the tax holiday for large investment projects, you cannot claim CRIC on property used or acquired for that project

Required Documents

Prepare a complete, well‑organized documentation set to support your CRIC claim. The following documents are commonly required or strongly recommended:

• Corporate and fiscal documents

• Quebec corporate income tax return package for the year

• Completed form RD‑1029.8.CR for the relevant taxation year

• Financial statements and trial balance supporting the claim

• Project and technical evidence

• Project descriptions and objectives demonstrating scientific or technological uncertainty and advancement (for R&D)

• Technical reports, lab notebooks, code repositories, design files, prototypes, test plans, and results

• Evidence that pre‑commercialization activities are in continuity with prior Quebec R&D (e.g., project roadmaps, change logs)

• Time and cost substantiation

• Detailed timesheets and allocation records for employees working on eligible activities

• Payroll registers, T4/T4A/T5 equivalents as applicable, and reconciliations to salaries claimed

• Subcontractor agreements specifying that work is performed in Quebec, statements of work, invoices, and proof of payment

• Documentation for payments to public research centres, consortia, or universities, with scope of work and deliverables

• Equipment invoices, asset records, commissioning documents, and usage logs demonstrating direct link to eligible activities

• Stacking and assistance

• Records of any grants, subsidies, or other assistance related to the same expenditures, with amounts and periods

• Internal calculations netting out assistance in your CRIC computation

• Calculation workpapers

• Computation of the exclusion threshold (greater of $50,000 or the adjusted employee‑based amount)

• CRIC rate application: 30% on first $1M above the threshold, then 20% on the remainder

• Reconciliations from general ledger to RD‑1029.8.CR schedules

• Governance and retention

• Internal policies for time tracking and cost allocation

• Records retention plan; maintain supporting documentation for the entire statutory period

Step-by-Step Application Process

Follow these steps to submit a complete, defensible CRIC claim. As of December 1, 2025, the prescribed CRIC form is RD‑1029.8.CR, which must be filed with your Quebec corporate income tax return.

Step 1: Confirm program timing and corporate eligibility

• Verify your taxation year begins after March 25, 2025.

• Ensure you operate a business in Quebec and file a Quebec corporate income tax return for the year.

• Confirm your activities took place in Quebec (or were performed for you in Quebec under contract).

Step 2: Scope your eligible projects and activities

• Identify R&D projects that meet the harmonized SR&ED definition (basic research, applied research, experimental development).

• Identify pre‑commercialization activities tied to your Quebec R&D, such as regulatory testing/validation and product design improvements.

• Exclude general commercialization, routine testing without advancement, business development, and marketing activities.

Step 3: Map and collect eligible costs

• Salaries: extract employee time and payroll data for those who worked on eligible activities; apply only the portion attributable to eligible work.

• Subcontractors: gather contracts, invoices, and attestations that work was performed in Quebec; remember only 50% of eligible Quebec subcontractor costs are claimable.

• Public research organizations: compile agreements and invoices; only 50% of eligible payments can be claimed.

• Equipment: compile invoices and commissioning/use evidence; exclude buildings, land, and rights of use over real property.

• Net out any assistance from other programs tied to the same expenditures.

Step 4: Calculate the exclusion threshold and credit amount

• Determine the exclusion threshold for the year:

• The greater of $50,000 or the computed employee‑based amount (which is adjusted according to the time each employee devoted to eligible R&D and pre‑commercialization).

• Compute total eligible expenditures for the year in Quebec (after deducting assistance and applying the 50% rules where required).

• Apply CRIC rates:

• 30% on the first $1,000,000 of eligible expenditures above the exclusion threshold

• 20% on the remaining eligible expenditures above $1,000,000

• Prepare clear workpapers showing each step and reconciliation to your financial records.

Example (illustrative only):

• Eligible expenditures after assistance and 50% rules: $1,600,000

• Exclusion threshold (computed): $120,000

• Amount above threshold: $1,480,000

• First $1,000,000 at 30% = $300,000

• Remaining $480,000 at 20% = $96,000

• Total refundable CRIC = $396,000

Step 5: Prepare the technical narrative and evidentiary package

• Draft concise narratives for each R&D project, describing uncertainties, hypotheses, work performed, and outcomes.

• For pre‑commercialization, document regulatory objectives, test plans, validation protocols, results, and design iterations — and link them to prior Quebec R&D.

• Organize timesheets, payroll, contracts, invoices, and equipment records in a way that mirrors the structure of RD‑1029.8.CR.

Step 6: Complete form RD‑1029.8.CR

• Enter corporate identification and the taxation year dates.

• Report eligible expenditures by category (salaries, subcontractors at 50%, public research payments at 50%, equipment).

• Report assistance amounts deducted from expenditures.

• Compute the exclusion threshold and apply the 30%/20% rates as prescribed.

• Review for arithmetic accuracy and consistency with your narratives and financials.

Step 7: File RD‑1029.8.CR with your Quebec corporate income tax return

• Attach the completed RD‑1029.8.CR to your Quebec corporate income tax return for the same taxation year.

• Ensure your filing is complete by your corporate return deadline.

• If you also file federal SR&ED, ensure consistency between technical narratives and cost allocations across jurisdictions.

Step 8: Maintain records and respond to reviews

• Retain all supporting documents for the statutory period.

• Be prepared for financial and technical reviews:

• CRA conducts the scientific/technical review of R&D work

• Quebec authorities review tax calculations, expenditures, and program compliance

• Respond promptly to information requests and keep a clear audit trail.

Step 9: Amend if necessary (within statutory time limits)

• If you discover errors or additional eligible costs after filing, assess whether an amended return is appropriate.

• Ensure any amendment respects reassessment deadlines and program rules.

Application Timeline

• During the fiscal year: Track time, costs, and technical progress contemporaneously; obtain Quebec location attestations in subcontractor contracts.

• After year‑end: Compile documentation, calculate the exclusion threshold and credit amount, and complete RD‑1029.8.CR.

• Filing deadline: File RD‑1029.8.CR with your Quebec corporate income tax return by the return’s due date for the taxation year that began after March 25, 2025.

• Processing time: Review timelines vary based on claim size and whether a technical review is initiated. Budget several weeks to a few months from filing to refund.

• Amendments: If needed, consider an amended return within applicable reassessment periods.

Tips for a Successful Application

• Build eligibility into project design

• Define R&D uncertainties and advancement targets at project kickoff.

• For pre‑commercialization, plan regulatory pathways and testing protocols linked to prior Quebec R&D.

• Track time and costs in real time

• Use detailed timesheets and cost codes; separate eligible from ineligible effort.

• Tag subcontractor invoices that confirm work was performed in Quebec.

• Contract for Quebec performance

• Include clauses requiring subcontracted R&D/pre‑commercialization to be performed in Quebec and request location attestations.

• Optimize category choices

• Consider collaborating with eligible public research entities where appropriate; remember the 50% rule.

• For equipment, document direct use in eligible activities and exclude real estate.

• Model the exclusion threshold early

• Estimate the employee‑based component and test how it affects your credit amount.

• Manage stacking proactively

• Track other assistance and net it from eligible expenditures before calculating CRIC.

• Align federal and provincial narratives

• Harmonize SR&ED and CRIC technical documentation to avoid inconsistencies.

Common Mistakes to Avoid

• Claiming for a taxation year that begins before March 26, 2025.

• Including activities performed outside Quebec without an eligible Quebec contractual arrangement.

• Treating routine engineering, maintenance, or market research as R&D.

• Claiming pre‑commercialization activities that are not demonstrably in continuity with prior Quebec R&D.

• Forgetting to net out other assistance from eligible expenditures.

• Double‑claiming the same expense under CRIC and another Quebec credit (e.g., C3i).

• Claiming 100% of subcontractor or public research payments instead of the allowable 50%.

• Including real estate acquisitions (buildings, land, rights of use).

• Weak or missing timesheets, technical records, and cost reconciliations.

• Miscomputing the exclusion threshold or misapplying the 30%/20% rates.

What Happens After You Apply

• Initial processing: Your claim is assessed with your Quebec corporate tax return. If information is missing or unclear, you may receive a request for supporting documentation.

• Technical review: For R&D components, the CRA conducts the scientific review aligned with the harmonized definition. Be ready to explain uncertainties, hypotheses, and systematic investigation.

• Financial review: Quebec tax authorities verify expenditures, assistance netting, the exclusion threshold, and rate application, as well as program‑specific restrictions (e.g., C3i or tax holiday interactions).

• Decision and refund: Once assessments are complete, the refundable CRIC amount is issued. If adjustments are made, you will receive explanations and opportunities to respond.

• Reassessment and amendments: If you disagree with an adjustment, consider administrative review options or filing an amended return within statutory timelines.

Conclusion

Applying for Quebec’s CRIC requires careful alignment of eligibility, documentation, and calculations. Confirm your taxation year begins after March 25, 2025, ensure activities are performed in Quebec, compile strong technical and financial evidence, complete form RD‑1029.8.CR accurately, and file with your Quebec corporate return. With disciplined time tracking, clear narratives, and rigorous computations, organizations can confidently access this refundable tax credit to support R&D and pre‑commercialization in Quebec.