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Everything you need to know about the CDAE/CDAEIA tax credit

The CDAEIA is the evolution of the CDAE program, designed to support the integration of artificial intelligence into digital business platforms in Québec. It can cover up to 30% of eligible salaries and help accelerate your digital transformation (automation, personalization, security). Discover key eligibility rules, funding rates, and concrete examples for 2026.

Get up to 30% of your eligible IT payroll back

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    What is the CDAE/CDAEIA?

    The CDAE (Tax Credit for the Development of E-Business) and its new AI-focused version, the CDAEIA, are two major tax incentives offered by the Québec government.
    They encourage companies to accelerate their digital transformation and integrate AI technologies into their products and services.
    Together, these programs can provide up to 30% reimbursement on eligible salaries linked to IT and AI activities a strategic opportunity for innovative companies looking to strengthen their competitiveness in Québec.

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      CDAE

      The Tax Credit for the Development of E-Business (CDAE) supports Québec-based companies in the information technology sector that design, operate, or enhance digital platforms and software solutions.

      Eligible companies: Corporations established in Québec that earn at least 75% of their revenue from IT activities, employ a minimum of six eligible employees, and provide services to external clients.

      Eligible employees: Developers, analysts, engineers, or cybersecurity specialists working at least 26 hours per week for a minimum of 40 weeks per year.

      Funding: Covers up to 24% of eligible salaries (16% refundable + 8% non-refundable).

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      CDAEIA

      The CDAEIA (E-Business Tax Credit Integrating Artificial Intelligence) is the modernized version of the CDAE, focused on the integration of AI and intelligent automation within Québec’s digital enterprises.

      Objective: To promote the adoption of artificial intelligence in digital products, services, and processes in order to improve productivity and competitiveness.

      Eligibility: The same criteria as the CDAE, with the additional requirement of providing proof of significant AI integration within the developed solutions (predictive analysis, automation, personalization, etc.).

      Funding: Covers up to 30% of eligible salaries (22% refundable + 8% non-refundable).

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      CDAE → CDAEIA: What changes in 2026

      Both programs aim to support digital innovation in Québec, but the CDAEIA introduces an additional requirement related to the integration of artificial intelligence starting in 2026.

      Focus: The CDAE supports IT activities and digital transformation, while the CDAEIA promotes the adoption of AI in products and services.

      Funding rate: Up to 24% for the CDAE and 30% for the CDAEIA.

      Evolution: The CDAEIA will become the main program for technology companies for fiscal years beginning after December 31, 2025.

    Which activities are eligible for the CDAE/CDAEIA?

    Many technology-driven companies can qualify when they develop, operate, or integrate intelligent digital systems for their clients.

    CDAEIA in action SaaS company (Québec)

    A SaaS company develops a client platform with AI-based recommendations and workflow automation.
    • Eligible payroll 520 000 $
    • Exclusion threshold per employee: ~18 500 $
    • Eligible certified employees 7
    • Credit rate 30%
    • Estimated CDAEIA credit 121 500 $

    Estimated CDAEIA credit

    121 500 $ Calculate your credit arrow_outward arrow_outward

    CDAEIA in action Cybersecurity company

    A cybersecurity provider builds an AI-powered authentication and anomaly detection solution.
    • Eligible payroll 380 000 $
    • Eligible employees 5
    • Credit rate 30%
    • Estimated CDAEIA credit 88 200 $

    Estimated CDAEIA credit

    88 200 $ Calculate your credit arrow_outward arrow_outward

    Maximize your tax savings by combining the CDAE, SR&ED, and CRIC credits

    Did you know that it’s possible to combine multiple tax credits for a single innovation or digital transformation project?
    Under certain conditions, your company may benefit from the CDAE or CDAEIA while also claiming the SR&ED or CRIC, as long as the eligible expenses are clearly distinct.


    Tax CreditObjectiveCumulative Possibility
    E-Business tax credit (CDAE/CDAEIA)Encourage digital transformation and the integration of artificial intelligence within Québec-based companies.Can be combined with the SR&ED or CRIC programs when the expenses claimed are distinct (e.g., IT salaries vs. experimental R&D).
    SR&ED (Federal)Promote scientific research and experimental development across Canada.Can be combined with the CDAE when R&D activities are not already funded by another credit. Requires clear technical justification and documentation.
    CRIC (Québec)Encourage investment in clean technologies and energy transition initiatives.Can be combined with the SR&ED or CDAEIA when expenses relate to distinct environmental components (e.g., equipment vs. salaries).
    Leyton StrategyOur experts analyze your projects to identify synergies between programs, prevent double funding, and maximize your overall tax return.

    How Leyton helps you secure and optimize your CDAE/CDAEIA?

    Navigating Québec’s tax incentives is complex. Leyton supports you from eligibility assessment to final refund to secure your position and maximize your benefits.

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      Free eligibility review

      Comprehensive review of your IT and AI projects to identify eligible activities, employees, and salaries under CDAE and CDAEIA.

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      Preparation of Investissement Québec certificates

      Full support with corporate and employee certification, ensuring compliant, complete applications.

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      Optimization with other incentives

      Strategic coordination of CDAE/CDAEIA, SR&ED and CRIC to increase your global return while respecting non-cumulative rules.

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      End-to-end support and audit defense

      Ongoing support until refunds are received, assistance during reviews, and secure handling of your technical and financial documentation.

    FAQ CDAE/CDAEIA

    All you need to know about CDAE/CDAEIA

    Can’t find the answer you’re after? Please contact our team

    What is the CDAE tax credit in Québec? keyboard_arrow_down keyboard_arrow_up

    The CDAE is a refundable tax credit for Québec corporations operating in the IT and digital sector. It supports the development, enhancement, and operation of e-business solutions. Eligible companies can receive up to 24% of eligible payroll for qualifying employees.

    What is the CDAEIA? keyboard_arrow_down keyboard_arrow_up

    The CDAEIA (E-Business Development Tax Credit Integrating Artificial Intelligence) is the updated version of the CDAE for fiscal years starting after December 31, 2025. It rewards companies that integrate AI capabilities into their digital platforms, with a rate of up to 30% of eligible salaries.

    En savoir plus arrow_outward arrow_outward
    Who can qualify for the CDAE/CDAEIA? keyboard_arrow_down keyboard_arrow_up

    Corporations established in Québec that:
    ● Earn at least 75% of revenue from IT or digital activities;
    ● Employ at least six eligible full-time technical employees;
    ● Provide services or solutions to external clients;
    ● For CDAEIA, demonstrate significant AI integration in their solutions.

    Which activities are eligible for the CDAE/CDAEIA ? keyboard_arrow_down keyboard_arrow_up

    Eligible activities include software development, cloud and platform engineering, scalable architecture, advanced cybersecurity, data engineering, analytics, and AI integration that improves performance, automation, or decision-making.

    How is the CDAEIA tax credit calculated? keyboard_arrow_down keyboard_arrow_up

    The credit is calculated on eligible salaries for qualifying employees. CDAEIA provides up to 30% (refundable + non-refundable portions), subject to annual thresholds and Investissement Québec certification.

    CDAEIA vs CRIC: Quick Decision Guide for Quebec Tech CEOs arrow_outward arrow_outward
    Can CDAE/CDAEIA be combined with SR&ED or CRIC? keyboard_arrow_down keyboard_arrow_up

    Yes. CDAE/CDAEIA can be combined with SR&ED or CRIC as long as the same expenses are not claimed twice. Proper allocation and documentation are essential.

    How can Leyton support my CDAE/CDAEIA claim? keyboard_arrow_down keyboard_arrow_up

    Leyton’s multidisciplinary team helps you confirm eligibility, structure documentation, prepare IQ certificates, align with SR&ED/CRIC strategies, and support you in case of review.

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    Get your CDAE/CDAEIA refund estimate today

    Share a few details about your projects and payroll, and our team will provide a tailored estimate of your potential CDAE/CDAEIA benefits.

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