How much funding can be received?

Funds up to 25000% 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)

QC, Canada

Tax credit for development of a Quebec e-business

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Tax Credits

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Information and cultural industries
Finance and insurance
Professional, scientific and technical services

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Gouvernement du Québec
Investissement Québec (IQ)

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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.

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This tax credit supports activities related to the development and integration of e-business solutions within the IT sector. Eligible projects primarily involve the creation and enhancement of digital infrastructure and e-commerce capabilities.

Development and integration of information systems, including software and computer programs.
Advancement and integration of technology infrastructure, such as upgrading technology architecture and integrating hardware and software components.
Design and development of e-commerce solutions facilitating monetary transactions.
Development of security and identification services for e-commerce activities, including artificial intelligence and electronic imaging.

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$ 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.

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To be eligible for the tax credit, corporations must meet certain activity and employment requirements specified by Investissement Québec.

Your corporation must operate primarily in the fields of information system design or software publishing within Québec.
At least 75% of the corporation's activities must be in the IT sector, with at least 50% of these activities designated by NAICS codes 541514, 541515, 511211, 511212 and, under certain conditions, 561320 and 561330.
At least 75% of the activities covered by the relevant NAICS codes must provide services to persons with whom the corporation is at arm's length or services for applications used exclusively outside Québec.
The corporation must employ at least six eligible full-time employees throughout the taxation year.
Specific rules apply to transfers of activities and business start-ups in Québec.

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Corporations conducting e-business activities in the IT sector within Québec are eligible for this tax credit. Specifically, eligible corporations are those primarily involved in information system design or software publishing and conducting businesses in Québec establishments. These corporations must have at least 75% of their activities in the IT sector and meet additional NAICS code requirements, along with maintaining a minimum of six full-time employees involved in eligible tasks.

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This tax credit is specifically tailored for corporations active in the IT and e-business sectors. Certain types of companies and industries, particularly those not engaged in IT-related activities, are not eligible for this credit.

Companies not primarily engaged in IT sector activities as defined by specific NAICS codes.
Businesses where less than 75% of activities are in eligible IT fields.
Corporations that do not maintain a minimum of six eligible full-time IT employees.
Companies involved in non-IT administrative tasks.
Industries focused on marketing information systems for visibility and promotion purposes.
Firms operating customer relations centers without direct IT development involvement.
Businesses carrying out hardware installation and training activities as primary services.
Operations centered around managing e-commerce infrastructures rather than development.
Companies executing e-transactions as a service rather than developing the infrastructure.

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The tax credit covers eligible salaries for employees involved in specific IT activities.

Salaries of eligible employees who hold full-time jobs and devote at least 75% of their time to eligible activities.
Salaries paid up to an annual limit of $83,333 per eligible employee, subject to adjustments following the 2025 changes.

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This tax credit is specifically designed for corporations conducting e-business activities within the Quebec region. Eligibility requires that the business operations are primarily based in Quebec, focusing on advancing information technology solutions.

Companies established within Quebec, Canada.

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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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Here are some additional relevant details for applicants of this tax credit program:

The tax credit amount is subject to change, with the non-refundable tax credit portion increasing to 10% and the refundable portion decreasing to 20% by 2028.
Applicants will need to account for an exclusion threshold per eligible employee when calculating the tax credit from 2025 onwards.
The $83,333 wage limit for eligible employees will be removed starting from the 2025 taxation year.
There is a fees schedule for processing eligibility certificate applications, which can be found on Investissement Québec's website.
Financing options for refundable tax credits are available, which can help improve cash flow before receiving the credit itself.
English applications are supported, but forms must be submitted in French only.