CDAE-IA and CRIC: What the Quebec 2025 Budget Provides

The CDAE-IA credit is one of the major new features of the 2025 budget. This budget marks an important change in how Quebec supports innovation and digital. Two major changes are planned: the end of the CDAE credit and the arrival of CRIC, a new credit for research, innovation and commercialization.

At Avinova, we help you get the maximum possible assistance. Here’s what you need to know.

1. End of CDAE: Birth of CDAE-IA (with Integrated AI)

The Tax Credit for the Development of Electronic Business (CDAE) managed by Investissement Québec will be abolished for taxation years beginning after December 31, 2025. It will be replaced by CDAE-IA, a new tax credit that encourages the use of artificial intelligence (AI) in digital solutions.

CDAE-IA Objectives

• Direct tax assistance towards high-value technological projects.
• Support the adoption of artificial intelligence solutions.
• Exclude low value-added activities, such as application support or maintenance of existing systems.

CDAE-IA Eligible Activities

For a company to be eligible, its employees must carry out activities related to electronic business that significantly integrate AI, including:

• IT consulting services for digital transformation.
• Development and integration of technological systems.
• Cybersecurity and identification services.

Eligibility Conditions

The company must:

• Have an establishment in Quebec and at least six eligible employees.
• Derive 75% of its revenue from the IT sector.
• Generate 50% of its revenue from software development, publishing or data hosting/processing activities.
• Have 75% of eligible revenue from services provided to clients or outside Quebec.

Special Cases

• Subsidiaries of foreign companies will see their assistance rate reduced by half if they mainly provide services for their parent company.
• Internal activities within a group are only eligible if they target applications used exclusively outside Quebec.

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2. New CRIC: Tax Credit for Research, Innovation and Commercialization

The government is simplifying and modernizing the innovation assistance ecosystem with a new tax credit called CRIC, which replaces eight old programs (including the four R&D credits, the industrial design credit, the technological adaptation credit, and two tax holidays for hiring foreign researchers/experts).

CRIC Details

• Fully refundable credits.
• Covers salary expenses, equipment and 50% of subcontracting contracts.
• Assistance modulated according to eligible expenses rather than company size:
  • 30% on the first $1M eligible (beyond an exclusion threshold).
  • 20% beyond the first million.

Exclusion Threshold

To obtain the credit, expenses must exceed a certain threshold, either:

• The basic personal amount adjusted according to time devoted to eligible activities.
• A fixed minimum of $50,000.

Why This Credit?

This credit aims to support R&D and pre-commercialization projects carried out in Quebec and to harmonize efforts with the enhancements announced by the federal government, including the return of capital expenses in the federal R&D base.

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3. Targeted Grants for Innovation and Digital

In addition to major tax credits like CDAE-IA and CRIC, the government is extending certain sectoral measures directly related to the digital transformation of companies:

Print Media

• Extension of the tax credit for digital transformation of print media companies until December 31, 2025.
• Rate: 35% of eligible expenses (cap of $7M).

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For your digital development, R&D or business transformation projects, these changes can have a positive… or negative impact, depending on your activity profile.

At Avinova, we can help you take stock and build a clear and compliant maximization plan. Contact us now to assess your eligibility.

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Did You Know That as a Company, You Are Entitled to Several Grants and Tax Credits?

Did you know that as a company, you are entitled to several grants and tax credits to help you with your projects?

However, to take advantage of them, you must fill out all kinds of forms and applications, as well as meet several criteria that can be very complicated.

You have your specific area of expertise; we have ours.

Let us help you demystify grant and tax credit applications, and thus, you avoid many hours of work.

What You Need to Know About SR&ED

Every year, more than 20,000 Canadian companies receive financial incentives from the SR&ED (Scientific Research and Experimental Development) tax credit. Indeed, companies in all sectors can benefit from it provided they meet certain criteria. And if your company conducts projects with activities related to pure research, applied research, or experimental development, you may be entitled to it.

The decision-making entity, the Canada Revenue Agency (CRA) in this case, ensures that claims are verified and requires contemporary documentation of the work performed, i.e., a register of hypotheses developed and tested, test reports, and timesheets, to name just a few. So make sure you have everything in your possession and document your process as much as possible during the work and not after the fact.

To learn more about the specifics of this tax credit, feel free to consult our dedicated SR&ED page.

Learn More About SR&ED

Maximize Your Returns with Professionals

The financial world can be very complicated, especially if it’s not an integral part of your daily life. That’s why working with professionals for your SR&ED tax credit application or any other grant is also synonymous with peace of mind. Indeed, Avinova experts trained as engineers, scientists and financial analysts allow you not to break your head with the jargon of the financial world. Thanks to their expertise, knowledge and experience, our experts are able to analyze your business needs and ongoing projects to maximize your returns on available grants and tax credits. Here are some advantages of working with professionals for your SR&ED credit applications.

1. Complete and Error-Free Applications

They are able to fill out your applications for you, so there are no errors and no documentation missing to send. Each grant and each tax credit is extremely specific and requires very rigorous attention to avoid inaccuracies or omissions. If an application is refused by the decision-making entity, the process will become even more complex. That’s why it’s very advantageous to entrust this task to professionals, who have all the necessary tools to fill out these applications properly, and thus, ensure you a return. At Avinova, 99% of applications filled out by our experts are accepted as claimed.

2. Maximization of Returns

Once applications are filled out according to current criteria, our experts push the task even further to maximize the returns you can benefit from. Indeed, they are in a position to analyze your applications to get the highest profit. To do this, they will conduct an exhaustive study of your expenses, whether direct or support, and will try to maximize your returns on the SR&ED tax credit.

3. Pairing with Other Incentives

In addition to securing more than $4M in SR&ED credits each year, our experts are able to pair this application with several other incentives. If the SR&ED credit is not the most optimal for your needs, they can target other incentives that, combined with SR&ED, could prove more beneficial to your company.

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Contact Avinova Experts: The Solution to Guarantee Maximum Returns

At Avinova, our experienced team of experts is able to assist you with your tax applications, whether SR&ED or any other tax credit or grant application. With a complete and well-filled application, you are assured of having maximum returns. Benefit from all the incentives available to you and don’t let the nuances or complications of applications intimidate you: we are here to help. Book a free consultation with one of our advisors now and let’s discuss your project. We definitely have the tools to support you.