Who Can Apply to the Research, Innovation and Commercialization Tax Credit (CRIC) in Quebec
The Research, Innovation and Commercialization Tax Credit (CRIC) is Quebec’s new refundable tax credit for business research and development (R&D) and pre‑commercialization activities. It applies to taxation years beginning after March 25, 2025. The CRIC consolidates Quebec’s innovation support into a single refundable tax incentive designed to help organizations move from R&D to market‑ready products.
This article explains CRIC eligibility in detail. You will learn which corporations can apply, where activities must occur, which project types qualify, the timing rules, and important limitations such as stacking rules and exclusion thresholds. Use the self‑assessment checklist to quickly gauge whether your organization is likely eligible.
Program Overview
CRIC is a provincial, refundable tax credit that supports eligible R&D and pre‑commercialization carried out in Quebec. It is claimed by filing the prescribed form (RD‑1029.8.CR) with the corporate income tax return for the relevant taxation year. The credit rate is:
30% on the first $1,000,000 of eligible expenditures above the exclusion threshold, and
20% on any remaining eligible expenditures in the year.
Eligible cost categories include salaries and wages, 50% of eligible subcontracting performed in Quebec, 50% of payments to eligible public research organizations or universities, and certain equipment acquisitions (excluding real estate and related rights). According to the program rules, Quebec’s definition of R&D is harmonized with the federal SR&ED framework, and the Canada Revenue Agency performs the scientific review of R&D work. This alignment clarifies expectations for technical documentation and substantiation.
CRIC is open across industries—software/IT, manufacturing, life sciences, cleantech, aerospace, and more—provided that the activities meet the technical definitions and are performed in Quebec or for your corporation in Quebec.
Applicant Type Requirements
CRIC is intended for corporations that carry on business in Quebec. To be eligible, an applicant typically must:
Be a corporation subject to Quebec corporate income tax filing requirements.
Operate a business in Quebec (have an establishment and active operations).
Perform eligible R&D or pre‑commercialization activities in Quebec, or have them performed on its behalf under contract in Quebec.
File the prescribed CRIC form with its corporate income tax return for a taxation year beginning after March 25, 2025.
Additional notes on entity type:
For‑profit corporations are the primary intended claimants.
Non‑profit organizations and charities generally do not claim corporate refundable credits, as their tax status and filing obligations differ; confirm with a tax advisor if your entity is not a taxable corporation.
Public bodies and certain tax‑exempt entities are typically not eligible.
Partnerships are generally not “corporations.” In some Quebec incentives, corporate partners may claim a share of eligible expenditures incurred by a partnership, but treatment can vary. For CRIC, confirm how partnership structures are treated before planning a claim.
Sector scope:
CRIC is sector‑neutral. Software, AI/ML, advanced manufacturing, biotech, medtech, agtech, automotive, aerospace, and other sectors may qualify if the activity meets R&D or pre‑commercialization definitions.
Registration and compliance:
Applicants should have appropriate registrations (e.g., Quebec enterprise number, tax accounts) and be in good standing for provincial tax filings.
As with all tax incentives, the precise legal eligibility rests on the income tax statutes and program guidelines; organizations should verify classification and filing status before claiming.
Size & Scale Criteria
CRIC does not impose a minimum or maximum size on corporations. Both SMEs and large corporations can apply. However, there are financial mechanics to consider:
Exclusion threshold: A corporation must exceed an exclusion threshold in a given taxation year. The threshold is the greater of $50,000 or a computed amount based on the basic personal amount attributable to each employee, adjusted for the proportion of time those employees devote to eligible R&D and pre‑commercialization.
Rate tiers: The first $1,000,000 of eligible expenditures above the exclusion threshold is credited at 30%; expenditures beyond that are credited at 20%.
Implications for scale:
Smaller teams can qualify if their eligible expenditures exceed the applicable exclusion threshold.
Larger claimants should plan documentation systems early to support significant wage and subcontracting claims.
Geographic Eligibility
CRIC is a Quebec program with geographic constraints:
Activities must be carried out in Quebec, or on the corporation’s behalf under a contract executed in Quebec.
A Quebec establishment is expected. Operating solely outside Quebec or conducting R&D entirely outside Quebec would not meet the location requirement.
Multi‑province organizations can still qualify for eligible costs performed in Quebec; costs incurred outside Quebec are not eligible under CRIC.
Subcontracting in Quebec is explicitly recognized, with 50% of eligible contract amounts qualifying when the work is performed in Quebec. Payments to eligible public research organizations and universities located in Quebec are also recognized at 50%.
Project & Activity Requirements
CRIC covers two broad activity types, each with specific conditions.
R&D activities (harmonized with federal SR&ED definitions)
Basic research: Work undertaken for the advancement of scientific knowledge without a specific practical application.
Applied research: Work undertaken to advance scientific knowledge with a practical objective.
Experimental development: Work undertaken for technological advancement to:
Create new materials, products, devices, or processes; or
Improve existing ones, even incrementally.
Pre‑commercialization activities
Testing, technological validations, and studies conducted to satisfy regulatory requirements aimed at obtaining pre‑market approvals or certifications.
Product design that develops form and aesthetics, improves functionality, and guides choice of materials.
Continuity condition for pre‑commercialization:
Pre‑commercialization activities must be a continuation of R&D work carried out in Quebec by the corporation or on its behalf. In other words, design and regulatory validation should follow and be linked to Quebec‑based R&D performed by or for the claimant.
Timing rules
Only taxation years beginning after March 25, 2025, are eligible. For example:
A fiscal year beginning March 26, 2025, is within scope.
A fiscal year beginning March 1, 2025, would first be in scope for the subsequent year beginning in 2026.
Financial & Operational Criteria
To qualify and sustain a claim through potential review:
Tax compliance: Be up‑to‑date and in good standing with Revenu Québec corporate tax obligations.
Documentation: Maintain robust records—technical narratives, experiment logs, design documents, regulatory test plans/results, time sheets, payroll records, subcontractor agreements, invoices, and proof that work occurred in Quebec.
Stacking rules: Any other assistance (governmental or not) attributable to the same expenditures must be netted out of eligible costs. You cannot claim CRIC and another Quebec tax credit for the same expenditure. For instance, equipment costs cannot be claimed under both CRIC and Quebec’s investment and innovation tax credit (C3i); the corporation must choose one program for that expenditure.
Large investment project interaction: If you hold an initial certificate for Quebec’s tax holiday for large investment projects, you cannot claim CRIC on a cost related to a property used or acquired for that project.
Related‑party transactions: Costs involving non‑arm’s‑length parties may be subject to specific limitations or review. Ensure contracts and pricing are well‑documented and at fair market value.
Exclusion threshold: Plan project staffing and cost allocation to surpass the applicable exclusion threshold described above.
Ineligible Applicants
While CRIC’s rules focus on eligible activities rather than industry, some applicants are generally out of scope:
Individuals, trusts, and entities that are not corporations.
Public bodies and certain tax‑exempt entities.
Corporations that do not operate a business in Quebec.
Corporations whose R&D or pre‑commercialization is performed outside Quebec and not contracted/performed on their behalf within Quebec.
Corporations attempting to claim CRIC and another Quebec credit for the same expenditure.
Corporations within a taxation year that begins before March 26, 2025 (those years do not qualify; eligibility begins with the next fiscal year that starts after March 25, 2025).
Corporations with a tax holiday for large investment projects attempting to claim CRIC on property used or acquired for that project.
Note: Some structures (e.g., partnerships with corporate members) may have nuanced treatment. Confirm treatment before assuming eligibility.
Special Cases & Exceptions
Foreign‑owned corporations with Quebec operations: Eligible if they carry on business in Quebec and perform qualifying activities in Quebec (or have them performed on their behalf in Quebec), and file the Quebec corporate return with the CRIC form.
Startups and pre‑revenue companies: May qualify if incorporated, operating in Quebec, and meeting activity definitions and documentation standards. Refundability is valuable when taxable income is low or nil.
Software/IT: Experimental development for new algorithms, architectures, or performance improvements may qualify; pre‑commercialization could include regulatory compliance for certain sectors and industrial‑grade product design.
Manufacturing and hardware: Prototyping, iterative testing, material selection, and process innovation can qualify as experimental development; product design and regulatory testing can qualify under pre‑commercialization if in continuity with local R&D.
Life sciences and medical devices: Pre‑submission testing, validation against standards, and product design choices linked to Quebec R&D can qualify under the pre‑commercialization stream.
Consortia and public research collaborations: Payments to eligible public research centres, research consortia, or universities may qualify at 50% when aligned to your project and carried out in Quebec.
Multi‑jurisdiction projects: Allocate activities and costs carefully. Only the Quebec‑performed portion (or Quebec‑performed on your behalf) may be eligible under CRIC.
Self‑Assessment Checklist
Use this quick list to assess CRIC eligibility. A “yes” to most items suggests potential eligibility:
Our organization is a corporation that carries on business in Quebec.
Our taxation year for the claim begins after March 25, 2025.
We perform R&D in Quebec that meets the harmonized SR&ED definition, or we have that work performed on our behalf in Quebec.
Our pre‑commercialization activities (design, regulatory testing, validations) are in Quebec and are a continuation of our Quebec R&D.
We maintain detailed technical and financial documentation (time sheets, payroll, contracts, invoices, test reports).
Our eligible expenditures in the year exceed the applicable exclusion threshold (the greater of $50,000 or the computed employee‑based amount).
We understand and apply stacking rules by netting any other assistance from eligible costs, and we do not claim two Quebec credits for the same expenditure.
We are not attempting to claim CRIC on property used or acquired for a project benefitting from Quebec’s large investment project tax holiday.
We are in good standing for Quebec tax filings and can file the prescribed form RD‑1029.8.CR with our corporate return.
If you answered “no” to several items, clarify your status before proceeding. Some edge cases (e.g., partnerships or non‑arm’s‑length subcontracting) require tailored analysis.
Conclusion
CRIC is a refundable Quebec tax credit designed for corporations that operate in Quebec and conduct eligible R&D and pre‑commercialization activities in the province. Eligibility hinges on being a corporation, performing qualifying work in Quebec (or via Quebec‑executed contracts), meeting timing rules for taxation years beginning after March 25, 2025, exceeding the exclusion threshold, and respecting stacking rules. Because Quebec’s R&D definition is harmonized with federal SR&ED and subject to scientific review, rigorous documentation is essential. As of today’s date, organizations should confirm any special structures and prepare records that clearly trace activities, location, and costs to support a robust CRIC claim.
