Development of E-Business Tax Credit (CDAE)
grant_single|update April 22, 2025
QC, Canada
Tax credit for development of a Quebec e-business
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Tax Credits
grant_single|eligibleIndustries
- Information and cultural industries
- Finance and insurance
- Professional, scientific and technical services
grant_single|grantors
- Gouvernement du Québec
- Investissement Québec (IQ)
grant_single|status
grant_card_status|open
grant_single_labels|preview
The Development of E-Business Tax Credit (CDAE) provides eligible IT sector corporations in Québec with a tax credit of up to $25,000 per qualified employee annually to support high-value-added activities such as information system design, software publishing, and the development of e-commerce solutions. This program aims to strengthen the province’s information technology sector by encouraging innovation and the creation of specialized e-business services.
grant_single_labels|terms_and_conditions
- The tax credit is equal to 30% of eligible salaries paid, divided into 24% refundable and 6% non-refundable portions, up to an annual maximum of $25,000 per eligible employee (subject to upcoming changes).
- The eligible salary for the tax credit is capped at an annual limit of $83,333 per eligible employee until changes take effect for taxation years beginning after December 31, 2024.
- For taxation years beginning after December 31, 2024, the $83,333 limit is removed and a new exclusion threshold applies to qualified wages, equal to the lesser of the actual wages paid or the exclusion threshold ($18,056 for 2024, adjusted to the taxation year).
grant_single_labels|projects
- IT consulting services related to the development, integration, maintenance, or evolution of information systems or technology infrastructure.
- Design or development of e-commerce solutions enabling monetary transactions between clients and their customers.
- Development and integration, as well as maintenance and evolution, of information systems such as distribution packages, software, and computer programs.
- Development and integration, as well as maintenance and evolution, of technology infrastructure including technology architecture upgrades and integration of hardware and software components.
- Development of security and identification services (e.g., electronic imaging, artificial intelligence, and interface) related to e-commerce activities such as Internet network security.
grant_single|admissibleProjectsExample
$ 25,000
Develop cybersecurity solutions for enhancing e-commerce activities in Laval.
$ 25,000
Enhance IT infrastructure for a network of cooperative businesses in Quebec City.
$ 25,000
Implement a new e-commerce platform for small and medium-sized businesses in Montreal.
grant_single_labels|admissibility
- The applicant must be a corporation carrying out activities primarily in the fields of information system design or software publishing in an establishment located in Québec.
- At least 75% of the corporation's activities must be in the IT sector for the relevant taxation year or the prior taxation year.
- At least 50% of the corporation's IT activities must fall within eligible sectors as defined by Investissement Québec for the relevant year.
- At least 75% of the corporation's eligible activities must include services provided to arm’s length clients or services relating to applications developed by the corporation and used exclusively outside Québec.
- The corporation must maintain at least six eligible full-time employees throughout the taxation year.
- The corporation must obtain both a corporation certificate and an employee certificate from Investissement Québec annually.
grant_eligibility_criteria|who_can_apply
- Corporations primarily engaged in information system design
- Corporations involved in software publishing
- Specialized IT companies conducting innovative, high-value-added activities in the information technology sector in Québec
grant_eligibility_criteria|who_cannot_apply
- Companies whose main activities are not in the information technology (IT) sector as defined by specific NAICS codes.
- Businesses conducting activities excluded from the program, such as operation of an e-business solution (e.g., processing electronic transactions), management or operation of information systems, customer relations centres, hardware installation and training activities, administrative tasks, or activities related to marketing information systems designed to increase corporate visibility and promote goods or services.
- Corporations that do not maintain at least six eligible full-time employees throughout the taxation year (except in cases of new business start-ups or business transfers, where specific rules apply).
- Companies not operating from an establishment in Québec.
grant_eligibility_criteria|eligible_expenses
- Eligible salaries paid to eligible employees, up to an annual limit of $83,333 per employee (for taxation years before January 1, 2025).
- Qualified wages incurred and paid in respect of an eligible employee, with reference to exclusion thresholds effective for taxation years beginning after December 31, 2024.
grant_eligibility_criteria|zone
- Corporations with establishments located in Québec.
grant_single_labels|criteria
The evaluation and selection criteria for this grant are as follows:
- Innovation and added value of activities in the information technology (IT) sector
- Impact on Quebec's technological and economic development
- Capacity and skills of the project team
- Potential for job creation in Quebec
- Financial viability and project implementation plan
grant_single_labels|apply
1
Consultation with a counselor
- Contact an advisor from Investissement Québec to get answers to your questions.
- Ask where to obtain a copy of the eligibility certificate application form on the website.
2
Preparation of the forms
Complete the form for the corporation certificate and the employee certificate for the relevant fiscal year.
3
Submission of forms
Send the completed forms to Investissement Québec for review.
4
Request for funding for refundable tax credits
If desired, make a funding request for refundable tax credits with financing experts.
grant_single_labels|otherInfo
- Fees are charged for the analysis of each request for an eligibility certificate.
- The changes announced for 2025 involve a gradual increase in the non-refundable tax credit rate (from 6% to 10% by 2028) and a corresponding decrease in the refundable rate (from 24% to 20% by 2028).
- Financing for refundable tax credits can be obtained to access liquidity more quickly.
- The use of expired forms for the application will necessitate submitting a new compliant application, which will cause additional processing delays.
Apply to this program
More grants like this
Grant and Fundinggrant_card_status|open
Investment support for feasibility studies in Quebec
Tax Creditsgrant_card_status|openingSoon
Supports innovation and commercialization activities with tax incentives
Grant and Fundinggrant_card_status|open
Financing for Quebec cultural exports
Grant and Fundinggrant_card_status|open
Boost productivity through targeted technological innovations
Grant and FundingLoans and Capital investmentsgrant_card_status|open
Supports business productivity and expansion through technological investment
Tax Creditsgrant_card_status|open
Tax credit for commercialization of intellectual property (IP) in Quebec
Grant and Fundinggrant_card_status|open
Financial support to demonstrate electricity saving technology in Quebec
Grant and Fundinggrant_card_status|open
Get financial aid to install electric charging stations at your Quebec business
Grant and Fundinggrant_card_status|closed
NovaScience fund supports creating innovation and commercialization roles
Grant and Fundinggrant_card_status|open
Support for investment projects through digital transformation