Research, Innovation and Commercialization Tax Credit (CRIC)

• Enhanced rate of 30% applicable on the first $1 million of eligible expenditures per fiscal year.
• Base rate of 20% on eligible expenditures exceeding the initial $1 million.
• Associated corporations must share the $1 million expenditure cap for the enhanced 30% rate.

• The applicant must be a corporation operating a business in Quebec.
• The corporation must carry out research and development (R&D) or pre-commercialization activities in Quebec.
• Eligible activities include direct R&D or pre-commercialization, or subcontracting these activities to local partners.
• Eligible R&D activities include the development or improvement of products, processes, or technologies, prototyping, and feasibility tests.
• Eligible pre-commercialization activities include design and improvement of products, regulatory testing and certifications, industrial design and packaging, and necessary market studies for commercialization.
• Eligible expenditures include salaries of employees located in Quebec involved in R&D, subcontracting expenses with companies based in Quebec, payments to research centers or university organizations, and capital expenses for new assets used exclusively for eligible activities for at least two years.
• R&D work must be recognized as such by the federal government according to a harmonized definition.
• Pre-commercialization activities must result directly from eligible R&D work.
• The project must exceed a minimum exclusion threshold, either $50,000 or an amount calculated based on the number of employees engaged in eligible activities.
• The eligible fiscal year must begin after March 25, 2025.

Who is eligible?

• Technology companies
• Manufacturing companies
• Companies specializing in life sciences
• Any enterprise operating in Quebec directly engaging in R&D or pre-commercialization activities
• Companies subcontracting R&D or pre-commercialization activities to local partners in Quebec

Who is not eligible

• Individuals
• Trusts
• Certain public corporations

Eligible expenses

• Salaries of employees located in Quebec involved in R&D.
• Subcontracting costs with Quebec-based companies.
• Payments to research centers or university organizations.
• Capital expenditures for the purchase of new assets used exclusively for eligible activities for at least two years.

Eligible geographic areas

• Companies operating in Quebec.

• Respect of the exclusion threshold determined based on expenses and the number of employees involved in the covered activities.
• Compliance of the declared works with the definition of R&D recognized by the federal government.
• Rigorous and detailed documentation of eligible expenses.
• Justification of the use of capital assets in Quebec for 730 consecutive days.
• Verification of the origin of locally subcontracted activities, if applicable.
• Sharing of expense limits for associated companies according to established rules.

• Step 1: Assess Eligibility and Plan ActivitiesReview the requirements to confirm that your organization and activities qualify for the CRIC program.
• Carefully plan your R&D and pre-commercialization projects to maximize eligible expenditures.
• Step 2: Document Eligible ExpensesKeep thorough documentation of all eligible costs, including salaries, subcontracting, capital purchases, and payments to research partners.
• Ensure that capital assets are used exclusively for qualifying activities in Quebec for the required period (at least 730 consecutive days).
• Step 3: Calculate Eligible Expenditures and Exclusion ThresholdDetermine the total amount of qualified expenditures.
• Calculate the exclusion threshold based on the formula provided by the government (minimum $50,000 or a formula based on the number of employees).
• Assess expenses in excess of the threshold for credit calculation.
• Step 4: Prepare and File the Tax Credit ClaimComplete the designated forms for the CRIC as part of your corporate tax filing for a fiscal year beginning after March 25, 2025.
• Accurately declare all qualifying expenditures and supporting information as required.
• Step 5: Retain Supporting DocumentsKeep detailed documentation and evidence of all expenses and activities claimed in case of audit or review by government authorities.

• The enhanced 30% tax credit rate applies to the first $1 million of eligible expenses, with a base rate of 20% for spending above this threshold.
• The augmented rate is accessible regardless of the size or asset value of the business.
• The credit applies to fiscal years beginning after March 25, 2025.
• The exclusion threshold is either $50,000 or an amount calculated based on the number of employees involved in R&D or pre-commercialization, and applies before the tax credit is calculated.
• Government assistance received by the applicant reduces the amount of eligible expenditures for the tax credit calculation.
• Associated companies must share the $1 million limit for the enhanced 30% rate.
• Sound documentation of eligible expenses and detailed identification of pre-commercialization activities are encouraged to maximize the benefit.
• The Quebec government has committed $2.4 billion to the CRIC over five years, with a planned increase in annual budget allocation through 2030.