Quebec Budget: Key Updates

On March 25, 2025, Quebec Finance Minister Eric Girard unveiled the province’s 2025-2026 budget. The budget introduced a series of transformative initiatives aimed at revitalizing innovation and commercialization in Quebec. These measures are designed to reverse the alarming decline in business R&D investments. This will help position the province of Quebec for improved business productivity and competitiveness.

Introduction of the Tax Credit for Research, Innovation, and Commercialization (CRIC)

This new tax credit consolidates eight existing tax measures, streamlining support for businesses engaged in research, innovation, and commercialization activities.  Below are key highlights:

• The CRIC is a refundable tax credit that will enable all businesses to benefit fully from the amount of assistance they are entitled to in a taxation year, regardless of their tax payable for the year.
• The CRIC will cover a broader range of eligible expenditures relating to R&D activities. This will include salaries, payments made to subcontractors, to universities and to certain research organizations, as well as making certain R&D capital expenditures eligible for tax credits.
• Expenditures relating to pre-commercialization activities will include similar expenditures with respect to pre‑commercialization activities.
• The new rate will be 30% on the first million dollars of eligible expenses above a new exclusion threshold. For eligible expenses exceeding the $1 million limit, the rate will be 20%, regardless of the company’s asset level.
• The new exclusion threshold will be based on the number of employees involved in R&D and pre-commercialization activities, rather than the company’s asset level. The minimum exclusion threshold value is $50,000
• The new tax assistance program will take effect for corporate tax years starting after March 25, 2025.

The Incentive Deduction for the Commercialization of Innovations (IDCI)

Introduced in 2021, the IDCI aims to encourage the retention and commercialization of intellectual property (IP) assets developed in Quebec. The IDCI program will allow businesses to benefit from a significantly reduced tax rate of just 2% on the income generated from the commercialization of their IP assets.

As part of the 2025 budget, consequential adjustments were made to align the IDCI with the newly introduced CRIC. These adjustments ensure that the income eligible for the tax benefit under the IDCI will be appropriately aligned with the new CRIC framework. This will provide ongoing support for businesses engaged in innovation and commercialization activities in Quebec.

The E-Business Tax Credit (CDAE)

A key incentive for Quebec’s digital economy, is receiving targeted updates aimed at supporting AI-driven enterprises:

• Expanded eligibility for AI companies, ensuring businesses developing AI-based software and platforms can qualify for the tax credit.
• Refined qualification criteria, reducing barriers for startups and scaling companies in the AI sector.
• Increased emphasis on AI-powered automation solutions, aligning the program with Quebec’s broader AI strategy.

These updates reinforce Quebec’s position as a global AI hub, encouraging businesses to invest in cutting-edge e-business technologies. The enhancement also means there will be changes in approved tasks as follows:

• All tasks related to system maintenance and upgrades will no longer be accepted.
• All tasks related to data hosting and processing will now be accepted.

These updates reinforce Quebec’s position as a global AI hub, encouraging businesses to invest in cutting edge e-business technologies.

Why These Changes Matter for Your Business

Quebec’s 2025-2026 budget underscores the province’s commitment to supporting innovation, research, and commercialization. With streamlined SR&ED processes, enhanced DICI benefits, and AI-focused CDAE improvements, businesses have a unique opportunity to access funding and accelerate growth.

How Ayming Canada Can Help

Navigating government tax credits and incentives can be complex. At Ayming Canada, we specialize in helping businesses maximize their funding.

• Identifying eligible R&D and commercialization projects.
• Ensuring compliance with updated guidelines.
• Optimizing funding strategies to maximize ROI.

Don’t leave money on the table! Contact Ayming Canada today to see how your business can benefit from the latest Quebec budget updates. Our experts are ready to help you secure the funding you need to drive innovation and growth.

📩 Get in touch now to start your claim!