{"id":2122,"date":"2025-05-01T14:51:42","date_gmt":"2025-05-01T14:51:42","guid":{"rendered":"https:\/\/leyton.majjane.agency\/ca\/post\/e-business-tax-credit-what-to-know-from-the-2025-2026-budget\/"},"modified":"2026-07-26T17:03:04","modified_gmt":"2026-07-26T15:03:04","slug":"e-business-tax-credit-what-to-know-from-the-2025-2026-budget","status":"publish","type":"article","link":"https:\/\/leyton.com\/ca\/en\/insights\/articles\/e-business-tax-credit-what-to-know-from-the-2025-2026-budget\/","title":{"rendered":"E-Business Tax Credit: What to Know from the 2025\u20132026 Budget"},"content":{"rendered":"<p>On <strong>March 25, 2025<\/strong>, the Government of Quebec presented its <strong>2025\u20132026 budget<\/strong>, introducing major changes to the <strong><a href=\"https:\/\/leyton.com\/ca\/tax-credits\/e-business-tax-credit-develop-your-tech-projects\/\">Tax Credit for the Development of E-Business<\/a><\/strong>. These changes will be gradually implemented, starting with tax years beginning after <strong>December 31, 2024<\/strong>, with some specific measures taking effect in <strong>2026<\/strong>. <\/p>\n<h2 class=\"wp-block-heading\">A Reimagined E-Business Focused on Artificial Intelligence (Starting in 2026)<\/h2>\n<p>The current E-Business Tax Credit will be replaced with a new version centered around companies that integrate <strong><a href=\"https:\/\/leyton.com\/ca\/ict-companies\/\">artificial intelligence (AI)<\/a><\/strong> into their operations. <\/p>\n<p>This reform aims to support higher value-added technology projects and to align tax incentives with the new realities of the <a href=\"https:\/\/leyton.com\/ca\/ict-companies\/\">IT sector,<\/a> particularly those involving AI. <\/p>\n<h2 class=\"wp-block-heading\">Changes to the Tax Credit Structure (For Tax Years Starting January 1, 2025)<\/h2>\n<p>While the <strong>overall credit rate remains at 30%<\/strong>, its structure will evolve: <\/p>\n<ul>\n<li>The <strong>refundable portion<\/strong> of the credit will <strong>gradually decrease from 24% to 20%<\/strong> by 2028 (a 1% reduction per year)<\/li>\n<li>Conversely, the <strong>non-refundable portion<\/strong> will <strong>increase from 6% to 10%<\/strong> over the same period<\/li>\n<\/ul>\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h2 class=\"wp-block-heading\">Modified Eligibility Criteria<\/h2>\n<p>To qualify for the <a href=\"https:\/\/leyton.com\/ca\/tax-credits\/e-business-tax-credit-develop-your-tech-projects\/\">E-Business Tax Credit<\/a>, companies will now need to: <\/p>\n<ul>\n<li>Have a physical <strong>establishment in Quebec<\/strong> <\/li>\n<li>Employ a <strong>minimum of six eligible employees<\/strong> <\/li>\n<li>Generate <strong>at least 75% of their gross revenue<\/strong> from the information technology sector <\/li>\n<li>Ensure that <strong>50% of their revenue<\/strong> comes from specific eligible activities such as: Software publishing; Computer systems design; Data processing and hosting, among others <\/li>\n<\/ul>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/leyton.com\/ca\/wp-content\/blogs.dir\/3\/files\/2025\/05\/CDAE-budget-2025-2026-1024x349.jpg\" alt=\"\" class=\"wp-image-34715\" \/><\/figure>\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h2 class=\"wp-block-heading\">End of the Salary Cap: Introduction of an Exclusion Threshold<\/h2>\n<p>The <strong>salary cap of $83,333 per employee<\/strong> is being eliminated. It will be replaced by an <strong>exclusion threshold<\/strong> based on the basic personal amount under Quebec\u2019s tax system (e.g., <strong>$18,056 in 2024<\/strong>), proportionally adjusted to the number of eligible days per employee.<\/p>\n<p> This measure aligns with the changes already announced for the <a href=\"https:\/\/leyton.com\/ca\/tax-credits\/sred-scientific-research-experimental-development\/\"><strong>SR&amp;ED program<\/strong>. <\/a><\/p>\n<h2 class=\"wp-block-heading\">Redefinition of Eligible Activities<\/h2>\n<p>Some types of activities will now be excluded from the program: <\/p>\n<ul>\n<li>Activities related to <strong>maintenance or upgrades<\/strong> of information systems or tech infrastructure <\/li>\n<li>For companies providing services to <strong>related entities<\/strong>, if more than <strong>50% of their revenue<\/strong> comes from applications <strong>used outside Quebec<\/strong>, the <strong>credit rate will be reduced by half<\/strong> <\/li>\n<\/ul>\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<h2 class=\"wp-block-heading\">In Conclusion<\/h2>\n<p>The overhaul of the <a href=\"https:\/\/leyton.com\/ca\/tax-credits\/e-business-tax-credit-develop-your-tech-projects\/\">E-Business Tax Credit<\/a> reflects the Quebec government\u2019s clear intent to modernize the program and promote <strong>technological innovation<\/strong>, particularly through the integration of <strong>artificial intelligence<\/strong>. IT companies will need to adapt to these new rules starting in 2025, with special preparation for 2026, when AI will be central to the program. <\/p>\n<p>For more information,<a href=\"https:\/\/leyton.com\/ca\/contact-us\/\"> reach out<\/a> to our experts! <\/p>\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n<div class=\"wp-block-buttons\">\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https:\/\/leyton.com\/ca\/contact-us\/\">Contact Us<\/a><\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>On March 25, 2025, the Government of Quebec presented its 2025\u20132026 budget, introducing major changes to the Tax Credit for the Development of E-Business. These changes will be gradually implemented, starting with tax years beginning after December 31, 2024, with some specific measures taking effect in 2026. A Reimagined E-Business Focused on Artificial Intelligence (Starting [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2823,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[126,241,5243,537,230,111,214584],"tags":[457955,232,114,734],"expertise":[],"class_list":["post-2122","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-artificial-intelligence","category-blockchain-en","category-ict-en","category-innovation-en","category-software","category-tax-credit","category-telecom-en","tag-e-business-en","tag-funding","tag-innovation-en","tag-quebec"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>E-Business tax credit: Changes to keep in mind - Leyton Canada<\/title>\n<meta name=\"description\" content=\"On March 25, 2025, the Government of Quebec presented its 2025\u20132026 budget, introducing major changes to the E-Business Tax Credit...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/leyton.com\/ca\/en\/insights\/articles\/e-business-tax-credit-what-to-know-from-the-2025-2026-budget\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"E-Business Tax Credit: What to Know from the 2025\u20132026 Budget\" \/>\n<meta property=\"og:description\" content=\"On March 25, 2025, the Government of Quebec presented its 2025\u20132026 budget, introducing major changes to the E-Business Tax Credit...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/leyton.com\/ca\/en\/insights\/articles\/e-business-tax-credit-what-to-know-from-the-2025-2026-budget\/\" \/>\n<meta property=\"og:site_name\" content=\"Leyton Canada\" \/>\n<meta property=\"article:modified_time\" content=\"2026-07-26T15:03:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/leyton.com\/wp-content\/blogs.dir\/3\/files\/2025\/05\/CDAE-budget-20252026.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"655\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/e-business-tax-credit-what-to-know-from-the-2025-2026-budget\\\/\",\"url\":\"https:\\\/\\\/leyton.com\\\/ca\\\/en\\\/insights\\\/articles\\\/e-business-tax-credit-what-to-know-from-the-2025-2026-budget\\\/\",\"name\":\"E-Business tax credit: Changes to keep in mind - 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