Webinar – CRIC: A New Era for R&D Tax Credits in Quebec

Master the new drivers of innovation in Quebec with the CRIC.

The 2025-2026 budget marks a major turning point for Quebec’s innovation ecosystem. With the phase-out of several historical tax measures and the introduction of the CRIC, the rules of the game are evolving rapidly. For businesses, understanding this new credit is now essential to securing funding and maintaining competitiveness.

This strategic webinar, hosted by our expert, deciphers the reform to provide executives and financial managers with a clear, actionable analysis of the new scales and the opportunities offered by pre-commercialization.

What you will learn:

Agenda du webinaire :

• • Why a new tax credit? Budgetary context and the government’s simplification objectives.
• • Objectives of the CRIC.
• • Replaced measures: An overview of the credits being phased out in favor of the CRIC.
• • Eligibility, Eligible Activities, and Eligible Expenses.
• • Tax Rates: Old credit vs. CRIC.
• • Pre-commercialization.
• • Live Q&A session.

Questions and Answers

Below you will find the answers to the questions asked during the webinar, prepared by our expert Léo Keo.

Please note that these answers are provided for informational purposes only and do not constitute legal, tax, or financial advice.

If you have questions regarding your specific situation or that of your organization, we invite you to contact us directly.

Can an application be submitted with pre-commercialization expenses without incurring R&D expenses? 

No. For pre-commercialization expenses to be eligible, R&D expenses must first be incurred upstream. If there are no R&D expenses, it will not be possible to claim pre-commercialization expenses.

Is the purchase of tools or software used for product design eligible for the CRIC if these tools are not manufactured in Quebec?

Yes. There is no mention regarding the origin of the purchase of goods. In the tax forms, it is stated that the capital expense must be used in Quebec. Based on the information provided, it follows the same approach as the CIII.

Are prototyping equipment such as a 3D printer or a CNC machine eligible as capital expenses?

Yes. Equipment expenses can be claimed for both R&D and pre-commercialization. In both cases, the expenses must be capitalized.
If the equipment is claimed under R&D, you must be able to justify that it is used for more than 90% of R&D activities. For pre-commercialization, you must demonstrate that the activities meet the definition provided by the government.
The capital expense must be used in Quebec for at least two years to be eligible.

Is testing and validation equipment, such as a climate chamber, eligible?

Yes, as long as you can justify the R&D work related to the equipment in question. Part of the work may qualify as R&D, while validation work may qualify as pre-commercialization depending on the prerequisites of your activities.
The capital expense must be used in Quebec for at least two years to be eligible.

For the 20% rate after the first $1M of eligible expenses, is the gross amount or the net amount after subsidies considered?

The first $1M of eligible expenses is credited at 30%, after which the rate decreases to 20% for all expenses beyond the first million. The amounts considered are always the gross amounts. Subsidies are deducted at the end of the calculation.

For capital expenses, will Revenu Québec follow the same rules as the federal government?

Yes. There will be a harmonization of tax rules between the two levels of jurisdiction.

Until now, the federal government conducted audits of the claimed work. How will this work with the CRIC for pre-commercialization activities that do not concern the federal government?

There will be no changes regarding reviews. The federal government will continue to conduct reviews as in the past in relation to the federal schedules in the tax return. At the provincial level, they will conduct their own verification of the provincial tax forms. This does not prevent tax communications between the two levels of jurisdiction.

With the new exclusion threshold, are the salaries of summer interns (4 months) completely excluded? Is the tax credit for interns maintained or enhanced?

The exclusion threshold will apply pro rata to the time the intern spends with the company, since the amount disclosed by the government is based on a full-time employee.
The tax credit for interns will be maintained. However, you cannot combine two tax credits. If the intern is fully claimed under the intern tax credit, you cannot claim them under R&D, and vice versa.

Do you expect upcoming changes to the CDAE-AI that could expand the scope of eligible activities?

It is possible that with the announcement of the budget on March 18, 2026, additional clarifications may be provided regarding this matter following the 2025 budget announcement.

Do software tools have to be purchased, or are annual licenses (SaaS) eligible?

If the expenses are capitalized, then yes, they may be claimed. However, you must demonstrate that these expenses were incurred for R&D purposes (used more than 90% for R&D).
You may want to confirm with your external accountant whether these expenses can be capitalized, as this is not always the case for all expenses. The capital expense must be used in Quebec for at least two years to be eligible.

Is the purchase of a server to develop AI algorithms eligible? What about server rental fees (e.g., AWS, Azure)?

The purchase of a server solely for R&D purposes can be claimed as long as the expense is capitalized. However, rental fees are not eligible under the program.
The capital expense must be used for at least two years to be eligible.

Is the purchase of a laptop for a programmer dedicated 100% to AI R&D eligible?

Yes, if the computer is used 100% for activities related to R&D. The capital expense must be used in Quebec for at least two years to be eligible.. 

Is there a limit on capital expenses, as there was for the CIII?

No. At present, based on the 2025 budget announcement, no cap has been mentioned.