How much funding can be received?

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|projects

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.

grant_single|admissibleProjectsExample

$ 25,000

Implement a new e-commerce platform for small and medium-sized businesses in Montreal.

$ 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.

grant_single_labels|admissibility

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.

grant_eligibility_criteria|who_can_apply

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.

grant_eligibility_criteria|who_cannot_apply

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.

grant_eligibility_criteria|eligible_expenses

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.

grant_eligibility_criteria|zone

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.

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|register

Step 1: Contact an Advisor
Reach out to an Investissement Québec advisor via their hotline 1 844 474-6367.
Request guidance on the application process and obtain links to the necessary application forms for eligibility certificates.
Step 2: Complete the Applications
Fill out the corporation certificate and employee certificate applications for the relevant taxation year.
Ensure all required information and documentation are accurately provided to prevent processing delays.
Step 3: Submit Applications
Send the completed applications for the corporation and employee certificates to Investissement Québec for review.
Step 4: Await Confirmation of Eligibility
Wait for Investissement Québec to review your submission and confirm eligibility status.
Step 5: Apply for Refundable Credits (Optional)
If desired, reach out to an Investissement Québec financing expert at 1 844 474-6367 to discuss financing options for your refundable tax credits.

grant_single_labels|otherInfo

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.

grant_single_labels|documents

Development of E-Business Tax Credit (CDAE)

Apply to this program

Boost Your IT Business with Québec's E-Business Tax Credit

This tax credit aims to propel the IT sector throughout Québec by offering financial benefits to eligible corporations. Companies involved in innovative, high-value-added IT activities can secure up to $25,000 annually per eligible employee.

Understanding and Maximizing Québec’s E-Business Tax Credit

Québec's E-Business Tax Credit is a targeted financial initiative that seeks to reinforce the province's leading position in the information technology sector. Designed to stimulate economic growth and technological innovation, the tax credit provides significant financial relief to IT corporations, allowing them to redirect resources into expanding their innovative endeavors. Corporations that primarily work in IT fields such as information system design and software publishing, and operate within Québec, can benefit from this tax measure, provided they meet specific criteria set by Investissement Québec.

A notable aspect of the tax credit is its division into refundable and non-refundable components, offering 24% as a refundable credit and 6% as a non-refundable one. This structure not only assists eligible corporations by reducing their tax liabilities but also provides immediate cash flow benefits, enhancing their ability to invest in further developments or mitigate operational costs.

To qualify, corporations should ensure that at least 75% of their activities are anchored in the IT sector with the bulk of their services catered to clients at arm's length. Companies must routinely demonstrate this through documentation aligned with North American Industry Classification System (NAICS) codes, which designates eligibility based on specific activity categories, reinforcing the precision and targeted nature of the credit.

Eligible employees within these corporations are defined as those working full-time and devoting a substantial amount of their working hours to IT-related tasks. The tax credit supports salaries that form a key expense for IT firms, with an accommodation for up to $83,333 per annum per eligible employee, which supports recruitment and retention of skilled personnel in this competitive sector. Starting in 2025, changes will introduce an exclusion threshold for wages, affecting the calculation of qualified wages and offering opportunities for corporations to optimize their financial strategies.

The process of obtaining this credit requires detailed preparation and adherence to annual requirements. Corporations must secure both a corporate and an employee certificate from Investissement Québec, necessitating meticulous documentation and the payment of application fees for the eligibility reviews. The importance of submitting the latest versions of applications cannot be overstated, as outdated forms will necessitate reapplication, risking delays.

Further optimizing the benefits comes through avenues like financing the refundable portions of the tax credit, which allows companies to access funds sooner and reinvest in their operational growth. This strategic approach not only enhances cash flow but also positions companies to take timely advantage of market opportunities. Companies are urged to consult with financing experts to navigate this process effectively.

Looking forward, the tax credit is set to evolve with specified enhancements over the coming years, indicating a move towards increased non-refundable benefits and adjustments in credit limit structures, reflecting Québec's adaptive fiscal policy aimed at nurturing a robust IT environment.

By leveraging Québec's E-Business Tax Credit, IT corporations can significantly enhance their competitive edge, innovate more freely, and contribute substantially to the province’s economic vitality. This tax measure not only supports individual companies but echoes a broader economic strategy aimed at making Québec a thriving hub for technology and innovation.