Quebec AI Adoption Tax Credit (CDAEIA)

Insider Tip

Successor to the popular CDAE (e-business credit) with a specific AI focus. New for 2026 — businesses should claim early while the refundable component is at its highest rate (22%, declining annually). Broadly defined 'AI adoption' means companies implementing AI tools, building ML models, or integrating AI into existing products all qualify. Any Quebec business hiring data scientists, ML engineers, or AI specialists should investigate eligibility.

Success Profile

Quebec technology companies adopting AI across their operations — from dedicated AI startups to traditional businesses integrating machine learning. Montreal's strong AI ecosystem (Mila, Element AI alumni, university talent pipeline) means deep talent pools. Companies with 3+ AI-focused employees see the most meaningful credit amounts.

Evaluation Criteria

Entitlement credit assessed by Investissement Québec (IQ). IQ issues annual attestations confirming: (1) the corporation operates in eligible NAICS codes (e.g., 513211, 513212, 51821, 541514, 541515), (2) maintains at least 6 eligible full-time employees, and (3) employees spend 75%+ of time on qualifying AI e-business activities with significant AI integration (machine learning, neural networks, intelligent decision-making, or analytics). No competitive scoring — all qualifying businesses receive the credit.

Application Steps

Required Documents 6

Eligible Expenses 6

• Salaries and wages paid to eligible employees spending 75%+ of time on qualifying AI e-business activities
• Eligible employees must work 26+ hours per week for 40+ weeks
• Activities include development and integration of information systems incorporating significant AI functionalities
• Development of e-business security and identification services with significant AI component
• Machine learning model development, AI integration into digital platforms
• Salary amounts above the applicable exclusion threshold

Ineligible Expenses 6

• Salaries of employees spending less than 75% of time on qualifying AI e-business activities
• Contractor or subcontractor fees (only employee salaries qualify)
• Hardware, software licensing, or infrastructure costs
• Salary amounts below the applicable exclusion threshold
• Salaries for employees working fewer than 26 hours per week or fewer than 40 weeks
• General administrative or management salaries not directly tied to AI e-business activities

Intake Periods

Year-round for attestation applications with IQ. Tax return deadlines apply (6 months after fiscal year-end for corporations). Attestation applications must be submitted within 15-18 months of fiscal year-end.

Deadline Notes

New credit effective for fiscal years beginning in 2026 and subsequent years. Replaces and succeeds the CDAE (e-business credit). Claimed on annual corporate tax return with Revenu Québec.

Open Application Portal →

Ineligible Organizations

• Tax-exempt organizations
• Crown corporations and wholly controlled subsidiaries of Crown corporations
• Corporations not operating under eligible NAICS codes
• Corporations with fewer than 6 eligible full-time employees throughout the fiscal year
• Corporations without a permanent establishment in Quebec
• Non-IT companies that do not have IT activities as their primary business

Compatible Programs

Clawback Risk

Low Risk

Low. Entitlement credit with no clawback once properly certified. Risk of reassessment if Revenu Québec or IQ determines employees did not spend 75%+ time on qualifying activities, NAICS classification is incorrect, or minimum employee count was not maintained. Proactive record-keeping mitigates this risk.