Quebec R&D Tax Credit (CRIC — Research, Innovation and Commercialization)

Insider Tip

The CRIC's 30% rate on the first $1M of eligible expenditures is significantly more valuable than most Quebec companies realize — combined with federal SR&ED at 35%, a qualifying CCPC can recover 55-65% of the first million in R&D wages and capital as cash refunds. The new pre-commercialization component is also underutilized: if your company conducts R&D in Quebec and then moves to prototyping or pilot manufacturing, those costs can now be included in the CRIC base. Two critical cautions: (1) the CRIC form was not yet available as of early 2026 — companies with fiscal years beginning after March 25, 2025 should monitor Revenu Québec for form release and plan claim prep accordingly; (2) the exclusion threshold (~$50,000 per employee in R&D time) reduces the base before the 30% rate applies, but is still very favorable. Use a specialist for first-time claims — the interaction between federal T661 and the new Quebec form, plus the pre-commercialization documentation requirements, make DIY preparation risky.

Rejection Pitfalls 9

• Work characterized as routine engineering, product improvement, or standard practice — must demonstrate genuine technological uncertainty
• Pre-commercialization activities not directly resulting from R&D work conducted in Quebec by the same corporation
• Double-claiming the same expenditure under CRIC and another Quebec tax credit (e.g., C3i Investment and Innovation Tax Credit)

Success Profile

Quebec-based CCPC (Canadian-Controlled Private Corporation) with 5–100 employees in technology, software, advanced manufacturing, AI, biotech, or clean technology. Has salaried technical employees spending 30–70% of their time on genuine R&D or directly linked pre-commercialization activities. Has (or can build) contemporaneous documentation of technological uncertainty, hypotheses, and experimental procedures. Receives both federal SR&ED and CRIC simultaneously, maximizing the 55–65% combined refundable rate on first $1M eligible. Companies with capital equipment purchases for R&D are newly advantaged under CRIC vs. the legacy regime.

Evaluation Criteria

Non-competitive entitlement with dual review structure. CRA independently reviews the federal SR&ED eligibility using the five-question framework (technological uncertainty, systematic investigation, advancement, technical content, purpose). Revenu Québec independently reviews CRIC-specific eligibility, including the pre-commercialization linkage test and Quebec nexus. Both reviews must be passed for full credit realization. Revenu Québec has historically been active in provincial SR&ED reviews — larger claims have elevated review probability.

Application Steps

Required Documents 10

Eligible Expenses 5

• Salaries and wages for employees conducting basic research, applied research, or experimental development in Quebec (after per-employee exclusion amount of ~$50,000/year)
• Arm's-length subcontractor payments for eligible R&D activities at 50% of amounts paid (note: 80% for federal SR&ED — CRIC uses lower 50% rate)
• Capital expenditures for machinery and equipment used in eligible R&D activities (newly eligible under CRIC, previously excluded)
• Pre-commercialization activities directly resulting from R&D conducted in Quebec by the same corporation (new under CRIC)
• Eligible overhead (method to be confirmed in implementing regulations)

Ineligible Expenses 7

• Marketing, market research, and promotion activities
• Routine quality control testing
• Administration and management activities
• Pre-commercialization activities not directly resulting from Quebec R&D by the same corporation
• Activities performed outside Quebec
• Land, buildings, and leasehold interests
• Expenditures covered by another Quebec tax credit that prohibits double-claiming (e.g., C3i Investment and Innovation Tax Credit on same activities)

Intake Periods

Ongoing — no intake windows. File CO-17 within 18 months of fiscal year-end (standard deadline is 6 months after year-end). Federal T661 prerequisite must be filed within 18 months.

Deadline Notes

CRITICAL PROGRAM CHANGE: For taxation years beginning after March 25, 2025, the legacy Quebec SR&ED credit is replaced by the CRIC (Tax Credit for Research, Innovation and Commercialization). For legacy years (fiscal years beginning before March 26, 2025), claims can still be filed until September 25, 2026. The CRIC claim is filed annually with the CO-17 Quebec corporation tax return, within 18 months of fiscal year-end. No annual application window — claim is made for each eligible taxation year.

Open Application Portal →

Ineligible Organizations

• Sole proprietors and self-employed individuals (CRIC is corporations-only)
• Partnerships (cannot claim directly)
• Tax-exempt entities (registered charities, non-profits without taxable income)
• Corporations without a permanent establishment in Quebec
• Corporations conducting all R&D outside Quebec

Compatible Programs

Clawback Risk

Medium Risk

Moderate. Revenu Québec independently reviews CRIC claims and can reassess them independently of CRA. If CRA reduces the federal SR&ED base, the CRIC must be recalculated using revised expenditure figures. The pre-commercialization component (new under CRIC) carries higher initial characterization risk given limited administrative precedent. Interest accrues on over-claimed amounts from the original credit payment date.