Quebec AI Adoption Tax Credit (CDAEIA)
Eligibility & Details
What this program funds and who can apply
Program Description
New refundable tax credit of 30% of eligible AI-related salaries for Quebec businesses adopting and integrating artificial intelligence technologies. Successor to the CDAE (e-business credit), with the refundable component starting at 22% in 2026 and declining to 20% by 2028. Supports Quebec's push to become a global AI hub.
Eligibility Requirements
- Quebec-based business adopting or integrating AI technologies
- Must have eligible AI-related salary expenditures
- Corporation with establishment in Quebec
- AI activities must relate to adoption, integration, or development of artificial intelligence
- Applicable from fiscal years beginning 2026
Quick Assessment
Funding Details
- Amount
- 30% of eligible AI salaries (refundable 22% in 2026, declining to 20% by 2028)
- Type
- Tax Credit
- Level
- Provincial
- Co-Funding
- Up to 30% of eligible costs
- Deadline
- Active (from fiscal years beginning 2026)
Program Scorecard
Competition, effort, and approval at a glance
See how this program compares on approval odds, difficulty, and competition — so you know if it’s worth your time. Unlock with Premium →
How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipSuccessor 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.
See what trips up most applicants for this program — and how to avoid it. Unlock with Premium →
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.
See what successful applicants for this program actually look like. Unlock with Premium →
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.
See exactly what reviewers score on — so you know where to focus. Unlock with Premium →
Application Playbook
Step-by-step process, required documents, and expenses
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
Get the step-by-step application guide — documents, timeline, and what to prepare. Unlock with Premium →
Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Compatible Programs
Clawback Risk
Low RiskLow. 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.
See which programs combine with this one — and how much more you could get. Unlock with Premium →
How CDAEIA Compares
Side-by-side with similar programs
| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Quebec AI Adoption Tax Credit (CDAEIA) | 30% of eligible AI | Moderate | Tax Credit Offset | Active (from fiscal... |
| Strategic Response Fund (formerly Str... | Up to $50 million | Hard | Mixed (Advance + Reimb.) | Ongoing — continuous... |
| CanExport SMEs | Up to $50,000 | Moderate | Mixed (Advance + Reimb.) | Annual intake window.... |
| Innovative Solutions Canada | up to $150,000 | Hard | Milestone-Based | Challenge-specific — new... |
| Ocean Supercluster | Up to $5 million | Hard | Reimbursement | Call-specific — no open... |
Related Programs
Other programs you might be eligible for