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E-Business Tax Credit (CDAE/CDAEIA): Develop your tech projects

Helping businesses consolidate and grow their IT projects in Quebec

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    What is the E-Business Tax Credit (CDAE)?

    Delivered by Revenu Québec, this government incentive supports companies in Quebec’s Information Technology sector, particularly in computer systems design and software publishing. The E-Business Tax Credit (CDAE) was created to consolidate and grow the province’s IT sector. It provides a tax credit of 30% on eligible salaries.

    Transition to CDAEIA: what changes starting in 2026

    CDAEIA (E-Business Development Tax Credit integrating AI and automation) will replace CDAE starting in 2026.
    This reform is a major evolution of the program, refocusing tax support on projects that integrate artificial intelligence, automation, and intelligent systems.

    Key takeaways:

    ● Eligibility: while CDAE covered a broad range of software development activities, CDAEIA will target only projects integrating AI or automation.
    ● Refundability: the rate will move from 24% refundable + 6% non-refundable to 23% refundable, then decrease to 20% by 2028, with more selective criteria.
    ● Purpose: support innovative digital transformation and encourage deployment of intelligent solutions.
    ● Employee roles: greater focus on technical profiles tied to AI and software development, rather than administrative or adjacent roles.
    ● Stacking: like CDAE, CDAEIA will remain stackable with SR&ED and could potentially extend to CRIC tax credit.

    Why act now?

    2025 is the last full year to benefit from CDAE in its current form.
    Now is the ideal time to:

    ● Optimize your current CDAE claim;
    ● Prepare for the transition to CDAEIA to keep benefiting from tax support aligned with your future innovation projects.

    Leyton’s experts can help you assess your projects and anticipate upcoming regulatory changes.

    CDAE vs CDAEIA: key changes to anticipate
    CDAEIA will replace CDAE starting in 2026. The table below summarizes the main differences.
    TopicCDAE (through 2025)CDAEIA (from 2026)
    EligibilityBroadly defined software development activitiesProjects integrating artificial intelligence or automation
    Employee rolesIncludes both technical and non-technical rolesFocused on developers, AI teams, and related technical roles
    Refundability24 % refundable + 6 % non-refundable23 % refundable (reduced to 20 % by 2028), more selective
    ObjectiveSupport companies’ digital transformationPromote AI projects, intelligent systems, and innovative technologies
    StackingCompatible with SR&EDStackable with SR&ED and potentially the CRIC tax credit

    Examples of eligible activities

    • build_circle
      Development, integration, maintenance, or evolution of information systems and technology infrastructures
    • lock
      Development of security and identification services
    • settings_input_antenna
      Information technology consulting services related to technology, systems development, or e-business processes and solutions

    Latest news on CDAE

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    Boost your tech project with our other services

    • SR&ED Tax Credit

      Innovation funding that encourages companies of all sizes and industries to carry out research & development activities in Canada.

      Learn more

    • Multimedia Tax Credit

      Encourages the creation of an interactive digital multimedia product.

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    • OMMITC Tax Credit

      Ontario Made Manufacturing Investment Tax Credit encourages eligible Canadian-Controlled Private Corporations (CCPCs) to invest in manufacturing in Ontario by offering a refundable tax credit on qualifying expenditures.

      Learn more

    • Government Grants

      Funding programs for small and medium-sized businesses looking to accelerate innovation.

      Learn more

    Speak with one of our CDAE specialists

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