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Development of E-Business Tax Credit (CDAE)
Tax credit for development of a Quebec e-business
Last Update: March 4, 2026
Funding available
No Condition
Timeline
- Open continuously
Location
Quebec, Canada
Overview
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.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Develop an online presence
- Strengthen cybersecurity
Eligible Funding
- Up to 30% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Information and cultural industries
- Finance and insurance
- Professional, scientific and technical services
Location
- Quebec
Legal structures
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- All groups
Next steps
1
Determine your project
2
Validate your eligibility
Activities funded
- 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.
Eligibility
Who is eligible?
- 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
Who is not eligible
- 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.
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.
Eligible geographic areas
- Corporations with establishments located in Québec.
Additional information
Additional information on CDAE
- 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.
Documents and links
Frequently Asked Questions about the Development of E-Business Tax Credit (CDAE) Program
Here are answers to the most common questions about the Development of E-Business Tax Credit (CDAE). This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Development of E-Business Tax Credit (CDAE)?
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.
How much funding can be received?
Development of E-Business Tax Credit (CDAE) Funds up to 30% of admissible expenses.
Who is eligible for the Development of E-Business Tax Credit (CDAE) program?
To be eligible for the Development of E-Business Tax Credit (CDAE) program, you must:
The corporation must have at least 75% of its activities in the IT sector, with at least 50% covered by specific NAICS codes such as 541514, 541515, 511211, 511212, 561320, and 561330.
At least 75% of the corporation's activities covered by these NAICS codes must provide services to unrelated persons or concern applications used outside Québec.
The corporation must maintain a minimum of six eligible full-time employees during the taxation year.
What expenses are eligible under Development of E-Business Tax Credit (CDAE)?
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.
Who can I contact for more information about the Development of E-Business Tax Credit (CDAE)?
You can contact Investissement Québec (IQ).
Where is the Development of E-Business Tax Credit (CDAE) available?
The Development of E-Business Tax Credit (CDAE) program is available the province of Quebec.
Is the Development of E-Business Tax Credit (CDAE) a grant, loan, or tax credit?
Development of E-Business Tax Credit (CDAE) is a Tax Credits
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