Nine programs for Quebec businesses building software, adopting AI, launching e-commerce, and automating operations — from ESSOR Component 1C implementation grants to the new CDAEIA AI tax credit and CDTIM multimedia credits.
Every program classified honestly. Green = non-repayable grant or cost-share. Blue = tax credit. Amber = loan or repayable. Purple = equity.
The most direct digital implementation grant for Quebec SMEs. Component 1C covers up to 50% of eligible digital transformation costs — ERP systems, e-commerce platforms, CRM implementations, automation tools — but only after completing a Component 1B diagnostic through an IQ-recognized consultant. The diagnostic identifies priority digital investments and creates the implementation roadmap that 1C funds. Businesses in Montréal, Québec City, Laval, and Gatineau all access this through the same Investissement Québec portal, but the diagnostic consultants often have regional specializations.
Source: Investissement Québec ESSOR| Stage | What It Funds | Max Amount | Prerequisite |
|---|---|---|---|
| Component 1B | Digital transformation diagnostic | Up to $20K | None (IQ-recognized consultant) |
| Component 1C | Implementation of digital plan | Up to $30K | Component 1B completed first |
Successor to the popular CDAE (e-business credit) with a specific AI focus. New for 2026 — businesses adopting or integrating AI technologies can claim 30% of eligible AI-related salary expenditures. The refundable component is 22% in the first year, declining annually. Broadly defined "AI adoption" means companies implementing AI tools, building ML models, or integrating generative AI into products or workflows all qualify. Montreal AI startups and enterprises in the Greater Montréal area are the natural early adopters, but the credit applies province-wide to any Quebec-incorporated entity.
Source: Revenu Québec CDAEIAQuebec's flagship credit for the video game and interactive software industry supports approximately 13,500 jobs province-wide. The combined rate can reach 37.5% when both refundable and non-refundable components are factored in. Eligible products include video games, interactive software, e-learning platforms, and digital entertainment. Apply for your Investissement Québec certificate early in production — retroactive claims are possible but complicate audit defence. Montreal studios (Ubisoft, Behaviour, Ludia) and Quebec City developers are the primary beneficiaries, but any Quebec-incorporated multimedia producer qualifies.
Source: Investissement Québec CDTIM| Credit | Rate | What It Covers | Admin |
|---|---|---|---|
| CDAEIA | 30% | AI adoption salaries | Revenu Québec |
| CDTIM | Up to 37.5% | Multimedia production labour | Investissement Québec |
| CRIC | 20-30% | SR&ED expenditures in Quebec | Revenu Québec |
Canada's largest non-repayable R&D program, with bilingual Industrial Technology Advisors based in Montreal, Quebec City, Sherbrooke, and Gatineau. IRAP funds genuine technological uncertainty — building custom AI, machine learning models, proprietary data infrastructure, or novel software architectures. Applications can be submitted in French or English. The single most important success factor is your ITA relationship quality: treat the advisor as a partner, share detailed roadmaps, and meet regularly. Never start R&D before approval — IRAP cannot fund retroactively. Quebec tech companies in AI, fintech, and gaming are among the most active IRAP recipients.
Source: NRC-IRAP program pageThe 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. Budget 2025 raised the federal SR&ED enhanced-rate expenditure limit directly from $3M to $6M, meaning the maximum enhanced CCPC credit at the enhanced rate is now $2.1M/year (not $1.05M). The CRIC applies to software development, AI research, digital product innovation, and any eligible SR&ED conducted within Quebec. File within 18 months of your fiscal year-end.
Source: Revenu Québec CRIC; CRA SR&ED| Program | Rate | Max Refundable (Enhanced) | Claimed Via |
|---|---|---|---|
| Quebec CRIC | 30% (first $1M) | $300K | Quebec corporate return |
| Federal SR&ED | 35% (first $6M) | $2.1M/year | CRA T661 + T2 |
| Combined | 65% effective | $2.4M/year | Separate filings |
Quebec-exclusive federal program for scaling digital operations, productivity improvements, and market expansion. CED assigns a business advisor to every applicant before formal submission — this advisor is your internal champion. Call your regional CED office first. Frame your project around productivity metrics rather than general growth ambitions. SR&ED tax credits are often excluded from the 75% stacking cap calculation, making this particularly valuable for Quebec companies already claiming R&D credits. Excludes retail, food services, transportation, and housing construction. Applications are bilingual.
Source: CED Quebec REGI BSPMontreal's premier tech accelerator, mentor-driven and focused on early-stage companies with scalable technology models. The strongest applications demonstrate that founders are as invested in learning and network-building as they are in the co-investment. Successful applicants typically come with a specific challenge they want to solve during the 4 months rather than just a product pitch. No minimum revenue requirement — pre-revenue companies are eligible. The program requires full-time availability in Montreal for the duration. Cohort applications open annually; monitor founderfuel.com for the next intake.
Source: FounderFuel Accelerator| Program | Amount | Type | Best For |
|---|---|---|---|
| FounderFuel | Up to $120K | Accelerator equity | Pre-revenue tech startups |
| ESSOR Component 1C | Up to $30K | Cost-share grant | Revenue-generating SMEs |
| IQ Fonds Impulsion | Up to $120M | Convertible debt | High-growth tech scale-ups |
The largest single-project funding source for Quebec businesses investing in productivity, automation, and digital transformation. Volet 2 provides interest-free refundable loans — not grants — for projects demonstrating a minimum 20% increase in fixed assets or equivalent economic impact. The non-repayable top-up exists on paper but is reserved for exceptional productivity gains (40%+). Do not bank on it; size your ask as an interest-free refundable loan. A manufacturing SME in Laval automating its production line, a Quebec City logistics firm implementing warehouse robotics, or a Trois-Rivières processor digitizing quality control all fit this program. Project must start within 6 months of authorization.
Source: Investissement Québec ESSOR Volet 2Connects Quebec companies with graduate students and postdoctoral fellows from Canadian universities for R&D projects. The 99% approval rate means the real work happens before submission — invest time in the relationship with your Mitacs advisor. For businesses, the $7,500 partner contribution buys a funded researcher for 4-6 months. Quebec companies partnering with McGill, Université de Montréal, UQAM, Université Laval, or Sherbrooke can access bilingual researchers with specialized AI, software engineering, and data science expertise. Particularly valuable for digital transformation projects that need research capacity but cannot afford full-time hires.
Source: Mitacs Accelerate| Project Size | Best Programs | Type |
|---|---|---|
| Under $50K | ESSOR 1C, Mitacs Accelerate | Grant / matched |
| $50K – $500K | IRAP, CED REGI, Mitacs (multiple interns) | Grant / repayable |
| $500K – $2M | IRAP + CED REGI + CRIC/SR&ED stack | Grant + tax credits |
| $2M+ | ESSOR Volet 2, IQ Fonds Impulsion | Loan / equity |
Your best funding path depends on your business type, location, and growth stage. Find your profile below.
You are a software company in Montréal or the Greater Montréal area with a working product and 5-50 employees. You are integrating AI — recommendation engines, NLP, computer vision — into an existing SaaS platform. You have genuine technical uncertainty about whether your AI approach will achieve target accuracy or latency. Here is your funding path:
File federal SR&ED annually (35% refundable on up to $6M in eligible expenditures — Budget 2025 raised this from $3M directly to $6M; max enhanced credit is $2.1M/year). Stack with Quebec CRIC (30% on the first $1M) for a combined 65% effective recovery on qualifying R&D wages. Apply to IRAP through your Montreal ITA for non-repayable project funding — the ITA relationship is the gateway to the federal R&D system. For AI-specific salary costs, claim the new CDAEIA (30%) starting in fiscal years beginning 2026. If you need research talent without full-time hires, use Mitacs Accelerate with McGill or Université de Montréal.
Source: NRC-IRAP; Revenu Québec CDAEIAYou operate a manufacturing facility in the Quebec City agglomeration, Lévis, or along the Québec City–Windsor corridor. You want to implement an MES system, add IoT sensors, or automate quality control. Revenue is $2M+ but you are not a tech company. Here is your path:
Start with ESSOR Component 1B diagnostic through an IQ-recognized consultant — this unlocks Component 1C implementation funding (up to $30K). The diagnostic identifies exactly which digital investments will improve your productivity. For larger automation projects ($100K+ in eligible costs), apply to ESSOR Volet 2 Chantier Productivité (up to $10M as an interest-free refundable loan). The Ville de Québec Capitale-Productivité Grant (up to $150K) is also available if you operate within the Quebec City agglomeration. Contact the Service du développement économique directly — they provide pre-application advisory support.
Source: Investissement Québec ESSOR; Ville de Québec Capitale-ProductivitéYou produce video games, interactive educational software, or e-learning platforms in Montréal, Québec City, Sherbrooke, or Trois-Rivières. Your primary cost is skilled labour. You need predictable, ongoing tax relief rather than one-time grants. Here is your path:
Apply for an Investissement Québec CDTIM certificate early in production — this unlocks up to 37.5% on eligible Quebec labour for multimedia titles. Track project-specific labour costs meticulously; the credit is claimed through Revenu Québec and requires detailed records. Stack with federal SR&ED if your development involves genuine technological uncertainty (novel graphics engines, AI pathfinding research, procedural generation). The Canada Media Fund also supports games with Canadian cultural content. For a Montréal studio paying $1M in eligible Quebec wages, CDTIM returns $375K in combined credits.
Source: Investissement Québec CDTIMYou operate street-facing retail in Montreal and want to build an e-commerce channel, implement an omnichannel inventory system, or automate customer service. Revenue is under $2.5M. You do not qualify for ESSOR 1C's revenue threshold. Here is your path:
Apply to PME MTL Fonds Entrepreneuriat Commercial (up to $25K) for retail digital upgrades — you must operate a street-facing retail space in Montreal and hold Canadian citizenship, permanent residency, or a Quebec Selection Certificate. Contact your local PME MTL territorial hub (Centre-Ville, Centre-Est, Est, Nord, Ouest, or Ouest-de-l'Île) — not the central office — as each pole has its own investment committee. For e-commerce export development, CanExport SMEs (up to $50K per project) funds market research, platform localization, and digital marketing for new international markets. If your e-commerce platform involves custom software development with technical uncertainty, file SR&ED annually.
Source: PME MTL Fonds Entrepreneuriat Commercial; CanExport SMEsYou have an incorporated Quebec tech startup in Laval, Gatineau, or the suburbs of Montréal. You are pre-revenue or early-revenue with a technical team of 2-4 people. You need capital and mentorship, not just grants. Here is your path:
Apply to FounderFuel (up to $120K, 4-month Montreal program) if you have a scalable tech model and can relocate to Montreal for the cohort. If you are not ready for an accelerator, use Mitacs Accelerate to fund a graduate researcher ($7,500 company contribution) while you build your MVP. File SR&ED from day one — pre-revenue CCPCs can recover 35% of developer wages as cash refunds. The Laval Économique Virage Techno program (up to $50K) is available if you are located in Laval and your project involves digital transformation, automation, or robotization.
Source: FounderFuel; Laval Économique Virage TechnoDirect Answers
No other Canadian province has a structured diagnostic-to-implementation grant pathway like ESSOR. The $2.5M revenue threshold and 250-employee cap are real screens — if you are below them, PME MTL programs or municipal grants are your alternatives. The March 31, 2027 deadline is firm. Co-funding is mandatory.
CDAEIA (30%) is new for 2026 and specifically targets AI adoption. CRIC (30% on first $1M) covers Quebec-attributable SR&ED. Federal SR&ED (35% on first $6M, raised from $3M by Budget 2025) provides the largest single component. These three credits are claimed through different channels — Revenu Québec for CDAEIA and CRIC, CRA for SR&ED — and do not conflict.
Quebec's game industry relies on this credit — approximately 13,500 jobs province-wide. The combined refundable and non-refundable components reach 37.5%. The key requirement is the Investissement Québec eligibility certificate, which must be obtained early in production. Retroactive claims are possible but complicate audit defence.
Volet 2 is purpose-built for productivity and automation investments. The 20% minimum increase in fixed assets is the eligibility screen — document this carefully in your application. Do not expect the non-repayable top-up; size your ask as a loan. Engage your IQ account director early.
CDAEIA launched — Quebec's first AI-specific tax credit. The Crédit d'impôt pour le développement des affaires électroniques intégrant l'intelligence artificielle (CDAEIA) became active for fiscal years beginning in 2026. It replaces the popular CDAE (e-business credit) with a specific AI focus, offering 30% on eligible AI-related salary expenditures. The refundable component starts at 22% and declines annually. Quebec businesses implementing AI tools, building ML models, or integrating generative AI should claim early while the refundable rate is highest. Source: Revenu Québec CDAEIA program page
Budget 2025 raised the federal SR&ED enhanced limit from $3M directly to $6M. The enhanced 35% refundable ITC for CCPCs now applies on up to $6M in qualified SR&ED expenditures — up from $3M. Maximum enhanced credit is $2.1M/year (not $1.05M). For Quebec CCPCs spending $3M–$6M/year on software R&D or AI development, this is a material cash-flow improvement. Combined with Quebec CRIC at 30%, the effective recovery on qualifying digital R&D can reach 65%. Source: CRA SR&ED program — Budget 2025 amendments; enhanced limit raised $3M → $6M directly
ESSOR Component 1C deadline extended to March 31, 2027. The digital transformation implementation grant remains open with its $30K ceiling and co-funding requirement. The Component 1B + 1C pathway continues to be one of Quebec's most straightforward SME digital funding routes. Demand from Montréal and Québec City businesses has been strong; apply early to avoid end-of-program rushes. Source: Investissement Québec ESSOR
IQ Fonds Impulsion replaced Impulsion PME in October 2025. The new fund provides up to $120M in convertible debt for innovative Quebec technology companies. Access is gated: direct applications are not accepted — you must be referred by a recognized incubator, accelerator, or sectoral research cluster such as Centech, FounderFuel, District 3, or IVADO. For high-growth Quebec digital startups, joining a recognized ecosystem partner is now the prerequisite for provincial equity financing. Source: Investissement Québec Fonds Impulsion
CED Quebec REGI priorities shifted toward AI and productivity for 2026-2028. Canada Economic Development for Quebec Regions adjusted REGI and QEDP priority sectors to emphasize AI/ML applications, advanced manufacturing, and digital productivity — reflecting Quebec's Strategic Industrial Policy. Quebec digital businesses in these sectors have improved approval odds for repayable contributions. CED assigns a business advisor to every applicant before formal submission. Source: CED Quebec REGI program page
CanExport SMEs 2026-27 prioritizes non-U.S. markets. Only $3.1M of the $31M budget is allocated to U.S. projects, meaning non-U.S. applications face far less competition per dollar. Quebec digital companies targeting EU, Asia-Pacific, or Latin American markets should prioritize CanExport for e-commerce localization, platform adaptation, and digital marketing in new markets. Deadline: May 29, 2026. Source: Global Affairs Canada CanExport SMEs
A five-step guide from diagnostic to tax credit claim.
Montréal is the centre of gravity for Quebec's digital funding ecosystem. The Greater Montréal area encompasses Laval, Longueuil, and the South Shore technology corridor. Investissement Québec headquarters are in Montréal, and the primary ESSOR application portal serves the entire province from there. PME MTL — the City of Montreal economic development network — operates six territorial poles (Centre-Ville, Centre-Est, Est, Nord, Ouest, Ouest-de-l'Île) each with their own investment committee and budget. Scale AI is headquartered in Montréal and is Canada's AI Global Innovation Cluster, funding supply-chain AI projects with investment vouchers, acceleration grants, and mission-critical funding. IVADO (Institut de valorisation des données) and Mila (Quebec AI Institute) are Montréal-based research institutes that partner with companies for Mitacs and NSERC collaborations. CRIM (Centre de recherche informatique de Montréal) provides applied research and technology transfer services to Quebec businesses. FounderFuel and District 3 are Montréal accelerators that can refer companies to IQ Fonds Impulsion.
Québec City and Lévis form the provincial capital's digital hub. The Service du développement économique et des grands projets administers the Capitale-Productivité Grant (up to $150K) for businesses in the agglomeration, including out-of-province companies establishing their first Quebec City location. Université Laval is a key Mitacs and NSERC partner for Quebec City-area companies. The Québec City–Windsor corridor connects the capital to Ontario markets and is relevant for digital companies seeking cross-provincial expansion.
Sherbrooke, Trois-Rivières, and Saguenay have growing tech sectors supported by regional CDEC and SADC networks — local development centres that provide advisory services and can bridge companies to provincial and federal programs. Gatineau businesses can access both Quebec provincial programs and federal channels through proximity to Ottawa. The MEIE (Ministère de l'Économie, de l'Innovation et de l'Énergie) sets provincial innovation policy and administers ESSOR through Investissement Québec. Futurpreneur Québec, La Ruche, and the École des entrepreneurs du Québec provide entrepreneurship training and early-stage support across the province. Canada Economic Development for Quebec Regions (CED) operates regional offices that assign business advisors to applicants before formal submission.
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