How much funding can be received?

Funds up to 30% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Development of E-Business Tax Credit (CDAE)?

Development of E-Business Tax Credit (CDAE) is funded by Gouvernement du Québec, Investissement Québec (IQ)

What are Development of E-Business Tax Credit (CDAE)'s eligibility criterias?

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.

Development of E-Business Tax Credit (CDAE)

grant_single|update April 18, 2025

QC, Canada

Tax credit for development of a Quebec e-business

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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)

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grant_card_status|open

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Tax credit of 30% (24% refundable and 6% non-refundable) for information technology (IT) sector salaries up to a maximum of $25,000 per employee working on e-business activities.

grant_single_labels|terms_and_conditions

The tax credit represents 30% of eligible salaries paid by the corporation to eligible employees, with 24% refundable and 6% non-refundable, and is capped at an annual maximum of $25,000 per eligible employee (current rule).
The eligible salary taken into account is up to an annual limit of $83,333 per employee (current rule, to be removed for taxation years beginning after December 31, 2024).
As of 2025, the $83,333 limit on eligible salaries will be removed.
As of 2025, corporations must subtract an exclusion threshold (e.g., $18,056 for 2024, adjusted annually) per eligible employee from qualified wages when calculating the tax credit.
For taxation years beginning after December 31, 2024, the non-refundable tax credit rate (currently 6%) will increase by 1 percentage point annually, reaching 10% in 2028, while the refundable portion (currently 24%) will decrease by 1 percentage point annually, reaching 20% in 2028.

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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.

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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

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The annual maximum tax credit per eligible employee is $25,000 unless legislative changes remove this limit for taxation years beginning after December 31, 2024.
Fees apply for the analysis of all eligibility certificate applications; consult the official rates schedule for updated information.
The application forms must always be the latest version—forms dated prior to September 2023 will not be accepted after December 31, 2023, and using an outdated form necessitates reapplication, causing processing delays.
Changes in tax credit calculation and the removal of the wage cap will take effect for taxation years beginning after December 31, 2024; updates to the refundable and non-refundable rates will occur annually starting in 2025.
A qualified corporation whose taxation year overlaps two calendar years must apply the rate in effect at the start of its taxation year for tax credit calculation purposes.
It is possible to apply for advance financing for refundable tax credits by contacting Investissement Québec.
For inquiries or support, applicants can contact Investissement Québec advisors at 1 844 474-6367.